Prizes, Gifts, and Awards Policy
I. POLICY STATEMENT.
The College values the contributions of its faculty, staff, and students and encourages thoughtful, appropriate recognition of their achievements and milestones. This policy provides guidance for gift- and prize-related expenditures using College funds to ensure fairness, consistency across departments, alignment with College values, and compliance with IRS regulations.
II. APPLICABILITY.
This Policy applies to all College departments, offices, and employees (including faculty, staff, administrators, and students) using College funds to purchase gifts, prizes, awards, or tokens of recognition. Scholarships are excluded and administered separately by the Financial Aid Office.
III. DEFINITIONS.
Award/gift - An award/gift is something of value given to recognize a term of service, safety record, exceptional performance, special achievement, etc. Awards/gifts to students are taxable unless they qualify as scholarships and are directly applied toward tuition, required fees, books, and/or equipment. Student recognition by College departments for academic achievement is considered a prize (see below).
Cash equivalent award/gift - A cash equivalent award/gift is any item which can be used to 鈥減urchase鈥 merchandise or which can be easily converted to cash. Under IRS code, this includes cash, gift cards, and gift certificates. Gift cards and gift certificates are not permitted and therefore will not be reimbursed if you purchase them. For gift card payments to human research subjects, please refer to the Human Subjects Payment Policy.
A certificate that allows an employee to receive a specific item of personal property that is minimal in value (e.g. a certificate for a holiday turkey or ham), provided infrequently, and is administratively impractical to account for, may be excludable as a de minimis benefit, depending on facts and circumstances.
De minimus benefit - A de minimus benefit is any property or service provided to an employee that has so little value that accounting for it would be unreasonable or administratively impractical. Under IRS code, cash and cash equivalent fringe benefits (i.e. gift cards/certificates), no matter how small, are never excludable as a de minimus benefit.
Prize - A prize recognizes performance as part of a judged competition (e.g. best design, highest score, academic achievement, etc.), or winnings from a raffle or drawing. Prizes are taxable but are not considered wages 鈥 even if the individual is employed by the College. Student recognition by College departments for academic achievement is considered a prize by the IRS.
Purchased with College funds - Purchased with College funds mean purchases processed through Accounts Payable, 日本无码 Visa, reimbursed to an employee, and/or purchased with petty cash.
Tangible award/gift - A tangible award/gift is any non-cash item, such as flowers; books; trophies or plaques; 日本无码-branded merchandise; or event tickets.
Taxable period - The taxable period is the calendar year i.e. January 1 through December 31.
IV. POLICY.
A. Taxability Guidelines
IRS regulations stipulate that a tangible award/gift exceeding taxable limits (as shown in the table in section C, below) must be included in the recipient鈥檚 gross income. Where the value of these prizes and awards/gifts to faculty, staff, and students (including student employees) must be reported to HR (for employees) and/or Payroll (for non-employee students).
Non-US citizens 鈥 including international student workers 鈥 may be subject to additional tax rules depending on circumstances and treaty status. Where applicable, taxable income will be reported on Form 1042-S and may be subject to 14-30% withholding.
Please contact Shirley Wang at swang@oxy.edu or x2953 in advance to discuss specific tax impact.
B. Purchasing Guidelines
All purchases must be approved in advance by the department head and documented according to the College鈥檚 standard expense procedures.
Any gift (that is not a retirement gift) exceeding $100 or outside standard guidelines must receive written approval from the Controller or Chief Operating Officer and will be taxable.
Departments are responsible for coordinating recognition to avoid duplicate or conflicting gifts.
C. Taxability of Prizes and Awards/Gifts
|
Gift Type |
Allowable Guidelines |
Max Amount |
|
Retirements |
Group recognition preferred. Tangible gifts permitted; may include a recognition event. |
Up to $500 (gift) and $15-$20 per person for the event (any amount above will require VP pre-approval). |
|
Department / Group Appreciation |
Group recognition (not individual). Must be inclusive and documented. |
$15-$20 per person (any amount above $20 per person will require VP pre-approval. |
|
Holiday Departmental Celebrations |
Group recognition (not individual). Must be inclusive and documented. |
$15-$20 per person |
|
Bereavement |
In the event of the death of an immediate family member, sympathy flowers may be sent with prior approval from the Division Vice President. |
$100 |
D. Prohibited Uses of College Funds
- Personal life events (birthdays, weddings, baby showers, graduations, etc.).
- Cash or cash equivalents (including gift cards/certificates).
- Multiple gifts from different departments/accounts for the same individual and occasion (must be coordinated by department head).
- Lavish or excessive expenditures, even if donor or restricted funds are available.
E. Exceptions
Exceptions require written approval from the Controller or Chief Operating Officer and must include justification and supporting documentation.
What if I have questions?
If you have any questions, please contact Lupe Salmer贸n, Controller, lsalmeron@oxy.edu or at x1423.
V. POLICY HISTORY.
Responsible Officer(s): Controller
Effective Date: November 2023
Last Revised Date: January 2026
VI. RELATED POLICIES AND RESOURCES.
Employee Taxable Prize and Award/Gift Form