3357:12-20-04-Gift Card Purchasing and Use Policy

POLICY

This policy provides guidelines for the purchase and distribution of gift cards, gift certificates, bus passes, or other prepaid cards using College or grant funds. It is designed to comply with IRS regulations and safeguard against fraud and misappropriation. Gift cards are recognized as a form of cash equivalent and are subject to specific tax implications and strict control measures.

POLICY GUIDELINES

1.General Usage:

• Gift cards are recognized for use in student incentives, emergency assistance, and as non-cash stipends for third-party contributors like clinical or event speakers.
• The maximum value for individual gift cards shall not exceed $100.00.

2.Tax Compliance and Reporting:

• All gift cards distributed to students and non-employees that aggregate to $600 or more per calendar year are taxable and reportable on IRS form 1099-NEC.
• Gift cards distributed to employees are considered taxable income and must be included in the employee’s W2, irrespective of the amount.

3.Limitations on Use:

• Gift cards cannot be purchased with federal, state, city, or other grant funds unless explicitly allowed by the grant terms.
• Employees and students employed by the college are excluded from receiving gift cards for work-related activities, except through specific HR-administered programs.
• Employees enrolled in classes (excluding student workers) are not eligible to receive gift cards through programs designed to assist students.
• Gift cards may not be used to incentivize or influence student enrollment decisions. Any use of gift cards that could be perceived as an attempt to directly or indirectly impact enrollment is strictly prohibited.

4.Financial and Distribution Controls:

• Purchases and approvals must be segregated to prevent conflicts of interest.
• All gift cards on campus must be secured in the Business Office and distributed within 30 days of purchase to minimize risk.

5.Recipient Acknowledgement:

• Recipients are required to sign a document confirming receipt of the gift card and understanding of the allowable uses.

6.Exceptions and Misuse:

• Exceptions to this policy must be approved in advance by the college’s Fiscal Officer. Requests for exceptions should include a written detailed explanation of the intended use of the gift cards and demonstrate alignment with the College’s mission and policies. Unauthorized use of gift cards without prior approval may result in disciplinary action, up to and including termination.

 

POLICY HISTORY

·Policy adopted and approved by President’s Cabinet November 2024

INITIATING DIVISION

Business Services

POLICY REVIEWERS

Business Services

Office of Human Resources

 

POLICY REFERENCES

• No forms referenced
• No codified rules
• No connecting policies