Topics
Click the navigation links below to learn about UC ANR policies and procedures on giving and receiving gift cards for both employees and non employees.
Gift Card Policies
Other Non-Cash Gifts
Funding
Gift Card Policies
For employees
For non-employees
Gift Cards Provided to Employees
What amounts are allowed for gift cards?
All gift cards must contain a value of $10.01 or higher. Value must not exceed $75 per person.
How often can one employee receive an award (e.g., SPOT Award, STAR Award) within a calendar year?
No more than 3 times.
Can gift cards be given as part of a Length of Service recognition?
No
What kinds of gift cards qualify for non-cash awards?
Non-negotiable gift certificates (e.g., gift certificate or gift card for retail establishment or online store). Gift cards for services (e.g., yoga classes, blacksmith lessons, or spa treatments) are not allowed.
Can a unit or program purchase multiple gift cards to use as Spot Awards throughout the calendar year?
Yes. Ensure that the cards or certificates are stored in a secure location. Maintain a record of gift card/certificate distribution. Only purchase the number of gift certificates and cards expected to be awarded that calendar year.
Can gift cards be provided as incentives to complete surveys or questionnaires?
Yes, as long as the gift cards amount to less than $75 per person and contain over $10.01.
Can extramural funding be used to purchase gift cards?
If the awarded grant has established terms that include gift card purchases (for awards or survey incentives), then yes. If not, then appropriate addenda with proper approvals must be secured prior to purchase of gift cards for this purpose.
What are the rules on using State funds to purchase gift cards?
Expenditures for gifts may not be charged to State Funds except for a gift awarded to a student for an academic achievement. State funds have been identified by the system-wide budget office as encompassing all State General Funds and State Special Fund appropriations to a campus. This includes all of the 199XX funds except those that are classified as UC General Funds (i.e.; 199331, 19933, 19934, 19940, 19941, and 19942).
In which cases are gift cards not allowed?
Gift cards are not allowed in the following situations:
- Gift cards for services
- Recreation memberships
- Negotiable gift certificates (i.e., can be redeemed for cash)
- Season tickets for theater, cultural events, or sports
- Gifts for relatives, friends, or romantic partners (i.e., where conflicts of interest exist)
- Personal gifts for birthdays, weddings, relationship anniversaries, graduations, and any other personal event for which a business purpose cannot be reasonably written
- Gifts to any elected official, candidate for public office, organization, or committee, when the gift is a contribution to a political campaign or referendum.
- Length of Service Awards
Which UCOP Policy governs gift card purchases?
University of California - Policy G-41: Employee Non-Cash Awards and Other Gifts
Which card should I use while purchasing gift cards to give away during an event raffle?
P-Card or T-Card. Because events qualify as an allowable expense for the Travel & Entertainment Card (T-Card), you can use your T-Card for this purchase.
Gift card purchases must be made as described in Section 350-23. A Travel Visa card may be used for host gifts (see BFB G-28) and for prizes or gifts associated with an entertainment event (see BFB BUS-79).
What do I need to include in the expense report for the gift cards?
Gift Cards Provided to Non-Employees
See UCOP Policy G-42: Gifts Presented to Non-Employees on Behalf of the University. This policy's scope extends beyond but includes gift cards.
What are the limits for providing gifts (including gift cards) to non-employees?
If the value of gifts provided to a non-employee throughout the calendar year exceed $600 in value, the department must report to the Tax Reporting and Compliance office using the appropriate tax form.
Can I provide an honorarium using a gift card?
No
Can I compensate an invited guest (e.g., third party lecturer or workshop host) using a gift card?
No
Can I use Community Education General Support (CEGS) accounts to pay for gift cards?
No
When can I provide a gift to a non-employee?
Only when the business purpose for the gift furthers a University business purpose (e.g., public service or research). In this case, gift cards could be provided to students or volunteers involved in a study or University-sponsored activity.
Non-Cash Awards & Other Gifts
For Employees
For Non-Employees
Policy: The University’s policy aligns with IRS regulations. Therefore, the awards and gift limits are established so that the gift does not result in taxable income to the employee.
https://policy.ucop.edu/doc/3420353/BFB-G-41
Employee Non-Cash Gifts & Awards
Sympathy Gifts and Tangible Personal Property: $75 limit
Gifts of tangible personal property, such as flowers, may be presented as an expression of sympathy in the event of the death or major illness of an employee or employee's family member.
If the $75 limit is exceeded, it will be considered taxable income.
Cash Contributions: $200 limit
A cash contribution may be made to a charitable organization in lieu of a gift of tangible personal property. Such contributions must be accompanied by a transmittal letter on official University letterhead, which states that the donation was made on behalf of the University. Contributions may not be made to any political campaign, political party, committee, or group engaged in any attempt to influence the general public with respect to legislative matters, elections, or referendums.
Since a contribution made to a charity must be made in the name of the University, there is no tax consequence if the limit is exceeded.
Prizes and Other Gifts: $75 limit – Taxable if limit is exceeded
Departments will hold raffles for door prizes and other gifts to entice employee participation in an event. In addition, departments may provide gift cards and other tangible personal property to employees as an incentive to complete a survey or questionnaire. Departments should limit the value of such prizes and gifts purchased with University funds. A list of “winners” need to be provided with expense reimbursements.
Retirement: $400 limit - Taxable if limit is exceeded
If the cost (or value) of a length of a retirement award that is tangible personal property exceeds $400, only the amount more than $400 is taxable to the employee. Retirement gifts must be given as part of a meaningful ceremony and should not be determined by an employee's classification. Gift cards can be given.
Unallowable Awards and Gifts
Gifts of cash, except donations to a charity as an expression of sympathy,
Negotiable gift certificates and cards,
Gift certificates and cards for services,
Recreation memberships,
Season tickets to sporting or cultural events,
Gifts provided to employees in connection with birthdays, weddings, anniversaries, holidays, farewells, graduations and other occasions of a personal nature.
Non-Employee Gifts
Policy: The University’s policy, BFB-G42, aligns with IRS regulations. Therefore, the gift’s purpose must further a University business purpose, and gift limits must be in line with IRS regulations. Click here to read the UCOP Policy.
Basis for Allowed Gifts
Moderately-priced gifts made on behalf of the University to non-employees, students, or outside organizations are allowed when the gift:
- Benefits the University,
- Is in furtherance of a University business purpose, and
- Is clearly necessary to the University's fulfillment of its role as a good community citizen.
The business purpose for making the gift, or the business benefit the University derives or expects to derive, must be documented in writing. In most cases, the promotion of goodwill in the University community is an acceptable business purpose. The cost of such gifts must be reasonable in relation to the actual or expected benefits.
To avoid any appearance of favoritism or a conflict of interest, no officer or employee should present a gift on behalf of the University if it appears that the gift is being offered because of the position held by the recipient.
Other than a donation to a charitable organization in memory of or in support of an individual or cause, this policy does not permit cash gifts.
Gift Value and Frequency
Promotional Item: $75 per individual
Examples:
T-shirt
Cap
Pennant
Mug
Pen
Item that bears the logo of the University or a campus
Appreciation, Recognition, or Incentive: less than $600 per individual ($600 or more a 1099 will be issued and reported to the IRS)
Items of more than minimal value. (e.g., a plaque, watch, logo item, book, non-negotiable gift certificate, tickets to a sporting, theatrical, or musical event, or a meal provided to an individual in appreciation or recognition).
Gifts to students / volunteers for survey or questionnaire participation
Door prizes and other gifts provided to non-employees to encourage participation a University-sponsored event are also included in this category.
Sympathy Gifts: less than or = $200 per individual
Flowers, candy, or a book, presented as an expression of sympathy in the event of the death or major illness of an individual associated with the University or a member of the individual's family or household.
Alternatively, this policy allows for cash contribution to a charity in lieu of a gift of tangible personal property. Such contributions must be accompanied by a transmittal letter on official University letterhead which states that the donation was made on behalf of the University.
Funding Restrictions
State Funds
May only be used to award a gift to a student for an academic achievement.
Contract and Grant Funds
Federal, local government, and private contract and grant funds may not be used to purchase gifts, unless such expenses are specifically authorized in the contract or grant and only to the extent and for the purpose(s) so authorized.
Non-State Funds (endowments, gifts, income, etc.)
May be used to purchase gifts, in accordance with this policy and subject to any restrictions on those funds. In the event of a conflict between the terms of the funding source and University policy, the more restrictive policy shall apply.
State Funds can be used for retirement awards.
State Funds cannot be used for:
Sympathy gifts and cash contributions,
Raffle prizes,
Door prizes,
Incentive gifts to complete surveys and questionnaires.
Non-State Funds can be used for: (endowments, gifts, income, etc.)
Sympathy
Prizes
- Retirement