SUBJECT: FACULTY AND STAFF GIFTS AND AWARDS

APPLICABILITY: ALL FACULTY AND STAFF

1. Purpose:

    To provide a means for individual faculty and staff to receive gifts or awards for such reasons as length     of service, outstanding achievement, safety, goodwill, or retirement; and to specify University, State and     Federal requirements as applicable to such gifts and awards.

2. General Policy :

    The University does not prohibit the granting of gifts and awards to its faculty and staff; however, such     gifts and awards must conform to all provisions of this policy, must comply with state and University     purchasing and expenditure requirements, and must be approved in advance by the appropriate     administrator. The President or designate approves all University-wide gifts and awards. Vice     Presidents must approve gifts and awards to be granted at the department, school, or college level. The     exception would be any gifts or awards of tangible items of nominal value ($50 or less), which may be     approved by the department head. See also policy 1.6.6.1 “Tax Rules for Employee Gifts and     Awards.”

3. Cash Gifts and Awards :

    Gifts and awards in cash may only be approved by the President or designate and may only be granted     on a University-wide basis. All cash gifts and awards are considered supplemental compensation by the     IRS; therefore, they must be paid through Payroll and will be subject to all payroll taxes. See 1.6.6.1     “Tax Rules for Employee Gifts and Awards.”

4. Non-Cash Awards including Gift Certificates :

a. Non-cash gifts and awards may be issued at the department, school, or college level according to internally established criteria and with the approval of the Vice President. The dollar value of such awards will not exceed $500 per individual, if paid from local funds, and will not exceed the current maximum value allowed under state law, if paid from state appropriated funds. The Human Resources Department must be notified in advance of such awards to determine that their issuance is not in violation of State and/or University policy. Gift certificates are taxable to the employee under IRS rules. See Section 5. Gift Certificates . See also 1.6.6.1 “Tax Rules for Employee Gifts and Awards.” Reimbursement of gift certificates purchased with personal funds or personal credit cards is prohibited.

b. Non-cash awards may be issued on a University-wide level if approval is granted by the President or designate. The dollar value of such awards paid from state appropriated funds will not exceed the current maximum value allowed under state law.

c. For tax purposes, the dollar value of any taxable non-cash gift or award, whether paid from University funds or received as a gift/donation, and the name and social security number of the employee who is the recipient, must be furnished to the Payroll Office. To determine if the gift or award is taxable refer to the table in 1.6.6.1, “Tax Rules for Employee Gifts and Awards.”

References : Texas Government Code, 2113.201.