BU 001 - Employee Gift Giving

The Internal Revenue Service considers the distribution of cash, gift certificates, or any similar item that can be readily converted to cash, to be taxable compensation to the employees, and as such, requires that the value of these gifts be included on the employee’s w-2 form. Due to the recorded keeping and reporting requirements associated with employee gifts, President’s Council has adopted a policy prohibiting a department from purchasing gifts for employees including work studies. This policy also applies to non-employees who have performed services for the University.

Additionally, purchasing gifts for any person or entity from federal grants or matching funds is prohibited.

Federal Code of Regulations §200.434 Contributions and donations.

(a) Costs of contributions and donations, including cash, property, and services, from the non-Federal entity to other entities, are unallowable.