Gifts, Awards, Prizes, and Gift Cards

1.0    Purpose

The purpose of this policy is to ensure the college has meaningful ways to recognize employees and students, while also complying with IRS regulations.

2.0    Revision History

3.0    Persons Affected

1. Employees, visitors, organizations, students

2. This policy does not apply to scholarships as these are processed through the Financial Aid Office

4.0    Policy

The policy of Casper College is to ensure the following.

4.1    All awards, gifts, or prizes, must be reasonable and have a valid, documented business purpose that supports the mission of the college.

4.2    The College will comply with IRS regulations and other applicable laws, and expects all employees to assist in this commitment by adhering to policies and practices as well as federal, state, and local laws regarding gifts and awards.

4.3    Gift Cards, regardless of value, are considered cash equivalents by the Internal Revenue Service (IRS) and are subject to tax reporting.

4.3.1    Gift cards may be purchased and distributed under certain circumstances, including the following:

4.3.1.1    As an incentive to encourage participation of enrolled students

4.3.1.2    Recruiting of prospective students

4.3.1.3    For students in emergency situations to meet basic needs (ex. gas card, grocery card for student in need)

4.3.1.4    For volunteers who are not Casper College employees, students, or contractors currently under contract

4.3.1.5    If a gift is paid for by an individual or group using their personal funds and is not reimbursed by the college. The college has no policy on how individuals spend their own personal funds.

4.3.2    Gift cards may not be purchased or distributed under certain circumstances, including the following:

4.3.2.1    To employees

4.3.2.2    As payment to suppliers, vendors, or consultants for goods and/ or services received

4.3.2.3    To student workers as part of work-related activities

4.3.2.4    Using grant funds unless the terms and conditions of the grant permit such purchases

4.3.2.5    If the gift card is from a vendor or product that reflects unfavorably on the college and its core values (ex. gift card for alcohol)

4.4    The value of gift cards given to students and non-employees is taxable and reportable income on IRS form 1099-MISC if the value of gift cards received aggregates to an amount of $600 or more per calendar year. 

4.5    If an employee receives a cash or cash-equivalent gift, award, or prize from Casper College it is processed through payroll with the proper tax withholdings.

4.5.1    If an employee receives a cash or cash-equivalent gift, award, or prize from Casper College Foundation, the Casper College Foundation issues a 1099.

4.6    Non-cash benefits of de minimis value which fulfill a reasonable and necessary business purpose to carry out the mission of the college are allowable. These include such items as:

4.6.1    Traditional holiday gifts (candy, turkey, etc.) of a relatively small value

4.6.2    Occasional tickets for entertainment or sporting events

4.6.3    Occasional snacks, coffee, doughnuts, etc

4.6.4    Occasional meals

5.0    Definitions

5.1    Award: something that is bestowed for performance. 

5.2    Gift: items given to express appreciation, goodwill or gratitude.

5.3    Prize: something that is awarded in a contest or won by chance.

5.4    De Minimis: gifts, prizes, or awards so small in value that it is not reasonable or practical to account for their value. Cash and cash equivalents are never considered de minimis as defined by the IRS. For College purposes, de minimis is defined as non-cash items having a value of $100 or less and must be provided on an occasional basis.

6.0    Responsibilities

6.1    The Accounting & Financial Management (AFM) office is responsible for auditing gift card logs submitted to the AFM office.