Gift Card Guidelines

Below are the guidelines for the purchase and distribution of gift cards purchased with college funds, to ensure compliance with the college's tax withholding and reporting obligations. Based on the rules of the Internal Revenue Service (IRS) because gift cards/certificates have a readily ascertainable value, they are considered taxable income regardless of the face amount of the gift cards/certificates. For employees, the value of gift cards/certificates regardless of the dollar amount, is considered compensation subject to federal, state, and employment tax withholding, and reporting on Form W2.

Allowable and non-allowable circumstances

Allowable circumstances (employees are not eligible for any gift card):

• • For an event (e.g. door prize) in which the winner or participant is not an employee of the college
  • For students in emergency situations as approved through the College's Foundation Office under the "Student Emergency Assistance" category
  • Possible Dream grade report program
  • Food pantry program through TRIO
  • Approved student events as prizes, to be purchased and awarded after the event; only physical gift cards will be purchased
    Others as determined and approved by the Director of Business Services

Non-allowable circumstances:

• • As gifts for College employees
  • As payment to suppliers or consultants
  • Employee award or student academic awards
  • Awarded just for showing up or participating in an event or activity
  • May not exceed $25

General requirements and responsibilities

• • Extra gift cards may not be purchased to have on hand for a future event or future use.
  • Only Business Services may purchase gift cards on behalf of the College.  Any individual who purchases gift cards directly will not be reimbursed for the purchase.
  • Employees may not receive gift cards for any reason.
  • All cards must be locked in a secure location until distribution.  The requester is the custodian of the gift cards through distribution and documentation and may be held liable for the value of any missing or unaccounted for cards.  Any shortage must be reported immediately to Business Services who will liaison with Public Safety as appropriate.
  • All gift cards must be purchased by Business Services upon pre-approval.  Individuals should not advertise or promote that gift cards will be provided until approval is obtained.  Gift cards will only be purchased online in the exact quantity needed.  If the card and quantities requested are not available online, they will not be purchased and an alternative must be selected.  All card distribution must be documented with card number, reason for providing dollar amount, recipient of each card, and signature of recipient.  Cards must be picked up by individuals and signed for in-person and may not be mailed.
  • Only physical gift cards will be purchased.  Gift cards will not be electronically delivered to any recipient.
  • requester is responsible for the following:
    • Submitting requisition to Business Services with rationale and relevant information for purchase, including recipients, date of event, reason individuals will receive card (random drawing, etc.).
    • Acknowledge that they have received the cards and are the guardian of all cards through distribution.  requester will be required to sign that they have received the cards.
  • Requester is responsible for distributing cards and must return form signed by student that card has been received (Business Services will provide the form with the cards), within a specified period of time.
  • Ensuring that it is known that employees are not eligible to win or receive a gift card.

Frequently asked questions