Employee and Non-Employee Events, Gifts & Awards
Allowability depends on the University purpose, attendees or recipients, frequency, funding, cost, documentation, and required approvals—not simply on whether employees or non-employees participate.
University funds may not be used for personal celebrations such as employee birthdays, weddings, or anniversaries. A retirement or separation event may be allowable only when the applicable service, business-purpose, cost, funding, documentation, and approval requirements are met.
Compare common occasions
| Occasion | General treatment | Key requirements |
|---|---|---|
| Employee business meeting | May be allowable when the meeting has a substantial and bona fide University business purpose and the meal or refreshments are necessary to accomplish that purpose | Document the business purpose, official host, attendees, necessity of food, cost, funding, and required approvals. |
| Employee morale-building or appreciation | May be allowable when the activity is official, occasional, reasonable, and consistent with policy | Document the University purpose, participants, cost, funding, and required approval. |
| Retirement or separation | May be allowable for an employee retiring or separating after at least five years of University service | Verify the service requirement. Evaluate the event and any associated gift separately, including their respective limits, funding, documentation, and approvals. |
| Employee recruitment | May be allowable for prospective employees, including appropriate meals | Identify the recruit, participating employees, University business purpose, cost, funding, and required approval. |
| Donor, guest, visitor, or volunteer event | May be allowable when the expense advances a bona fide University relationship or activity | Record the participants’ names, roles, affiliations, University business purpose, official host, cost, funding, and required approval. |
| Student or programmatic event | May be allowable when directly connected to the University’s mission or delivery of an approved program | Document the program purpose, participant group, expected benefit, cost, funding, and required approval. |
| Spouse or domestic partner attendance | Not automatically allowable | Document the bona fide University business purpose served by the individual’s attendance and obtain exceptional approval when required. |
| Sporting, theatrical, or musical event | May be allowable only when directly connected to University business | Document the expected University benefit, participants, cost, funding, and any required additional approval. |
Review BUS-79: Expenditures for Business Meetings, Entertainment, and Other Occasions for the applicable University requirements.
Document the attendees
For each event:
- Identify the official host.
- Confirm that the official host or another designated University representative attended.
- Record attendee names and business affiliations when required.
- Identify attendee categories, such as employees, recruits, donors, students, volunteers, or guests.
- State the participants’ relationship to the University and the expected University benefit.
- For a large event, retain documentation supporting the participant count, such as a roster, registration record, invitation list, or program.
- Explain how any special attendee category relates to the University business purpose.
Gifts, awards, and prizes are separate expenses
Approval of an event does not automatically authorize an associated gift, award, or prize. Evaluate each gift separately based on the recipient, purpose, amount, funding source, payment method, documentation, approval, and potential tax treatment.
Gifts must serve a University business purpose and should be provided infrequently using reasonable, objective, and consistently applied criteria.
Use UCR’s Reference Guide on Giving Gifts to Employees/Non-Employees to evaluate proposed gifts, awards, and prizes.
Employee gift limits
| Employee award or gift | Per-person limit |
|---|---|
| Employee recognition, including Spot Awards | $75 |
| One-month parking permit | $315 |
| One-month transit pass | $315 |
| Length-of-service award | $400 |
| Retirement gift | $400 |
| Sympathy gift—tangible personal property | $75 |
| Sympathy gift—cash contribution to a charity | $200 |
| Prizes and other gifts | $75 |
Reasonable incidental costs that do not add substantial value to the gift—such as engraving, packaging, insurance, sales tax, mailing, and gift wrapping—are not included in the gift limit.
Non-employee gift limits
| Non-employee gift | Examples | Per-calendar-year limit |
|---|---|---|
| Promotional item | UCR-logo T-shirt, cap, pennant, mug, pen, or similar item | $75 per individual |
| Appreciation, recognition, or incentive | Plaque, watch, logo item, book, qualifying gift certificate, event ticket, appreciation meal, student academic award, or research participation incentive | $600 per individual |
| Sympathy | Flowers, candy, book, or charitable contribution accompanied by a transmittal letter | $200 per individual |
The limits apply to the cumulative value provided to an individual during the calendar year.
Gifts that are not allowed
| Recipient | Gifts that are not allowed |
|---|---|
| Employee | Cash, except an allowable sympathy contribution to a charity; negotiable gift cards; services or other intangible benefits; prepaid phone cards; travel or airline cards; recreational memberships; season tickets; and intangible length-of-service awards. |
| Non-employee | Cash, except an allowable charitable contribution made in memory of or in support of an individual. Other gifts remain subject to the applicable recipient, purpose, amount, funding, approval, and tax requirements. |
Gift-card requirements
Gift cards are treated as cash equivalents and require additional controls.
| Recipient or gift-card type | Requirement |
|---|---|
| Employee | Only a qualifying non-negotiable gift certificate or card valued at more than $10 may be used. It must identify the recipient, be nontransferable, not be redeemable for cash, and be usable only for tangible personal property. |
| Employee dining gift card | May be allowable when valued at $10 or more and otherwise consistent with the gift guide. |
| Employee length-of-service award | Gift cards are not allowed. |
| Non-UCR student or other non-employee | A negotiable Visa or Mastercard gift card must be purchased through Amazon Business and approved by Procurement Services. The maximum is $200 because of potential tax implications. |
| UCR student | Limited to $100. Amounts exceeding $100 require coordination with Financial Aid. |
| Physical gift card | Treat the card as a cash equivalent and follow the applicable safeguarding requirements. Electronic gift cards are preferred. |
Funding and payment requirements
| Requirement | Guidance |
|---|---|
| State funds | May be used for gifts recognizing student academic achievement, employee recognition, length of service, and retirement when all applicable requirements are met. |
| Contracts and grants | May be used only when the award specifically authorizes the expense and only for the authorized purpose. |
| Non-State funds | May be used subject to University gift requirements and any restrictions associated with the funding source. |
| Direct vendor payment | Use a purchase order when the vendor will accept a PO and bill UCR. |
| Employee reimbursement | Use the reimbursement method specified by the current campus payment guidance for the expense and attach all required documentation. |
| T&E Card | Not allowed for employee recognition gift purchases. |
| PCard | Generally not allowed for gift purchases. |
| Limited PCard exception | May be used through the UCR Staff Retirement Gift Program or for qualifying gift-card purchases with Procurement Services approval. |
| Contracts or vendor terms | Send contracts, terms and conditions, or documents requiring a signature to Procurement Services before making a commitment. |
When University policy and the funding terms differ, follow the more restrictive requirement.
Confirm the authorized payment method using the current Payment Card & Restricted Items Matrix.
Separation of responsibilities
Departments should separate gift purchasing, custody, approval, and distribution responsibilities whenever practical.
For low-value UCR-logo items distributed at an event, the purchaser should not also be the person solely responsible for awarding or distributing the items.
Gift documentation
For all gifts, retain:
- Date of the event or presentation
- University business purpose
- Original itemized receipt or invoice
- Description and value of the gift
- Funding source
- Applicable approvals
For gift cards and prizes or gifts valued over $10, also document:
- Recipient’s name
- Recipient’s title
- UCR affiliation or occupation
- Relationship to the University activity
- For gifts purchased through a purchase order, Department Head approval included with the supporting documentation
- A copy of the transmittal letter or card for promotional gifts of more than nominal value
For UCR-logo insignia items valued under $10, individual recipient names and signatures are not required. The department must still retain the event date, University business purpose, and original itemized receipt or invoice.
Gift exceptions
An exception requires a written justification explaining the University business purpose and why the standard gift requirements cannot be met.
At UCR, authority to approve gift exceptions has been delegated by the Chancellor to the Associate Chancellor and has not been further redelegated. Obtain the required approval before purchasing or presenting the gift.
Taxability
Gifts or other reportable payments to a non-employee totaling $600 or more during a calendar year may require reporting to the IRS on Form 1099.
Employee gifts exceeding the applicable limits or failing to meet the applicable requirements may be taxable and included on the employee’s Form W-2.
Tax reporting does not make an otherwise unallowable gift permissible.
Event and gift questions
-
Employee retirement or separation
Document the employee’s length of University service and the University purpose for the event. A retirement or separation event may be allowable only after at least five years of University service.
Evaluate the event and gift separately. A retirement gift is subject to the $400 employee gift limit. If the department uses the UCR Staff Retirement Gift Program, follow the program’s purchasing and documentation requirements.
-
The recipient is both a student and an employee
Determine whether the gift is being provided because of the individual’s employment.
If the gift depends on the individual’s employment relationship, apply the employee gift requirements. If it does not depend on employment, apply the non-employee requirements.
UCR student gift cards exceeding $100 require coordination with Financial Aid.
-
Donor or prospective donor
Document the donor’s or prospective donor’s relationship to UCR and the expected University benefit while protecting confidential information.
The individual’s donor status does not independently establish allowability. The event or gift must have a bona fide University purpose and meet the applicable cost, funding, documentation, and approval requirements.
-
Students and volunteers
Describe the University program, activity, academic achievement, research participation, or service supported by the expense.
Student or volunteer status does not independently establish allowability. Apply the appropriate non-employee limit and any additional gift-card, Financial Aid, funding, or tax requirements.
-
Near relatives and companions
Document the specific University reason for the individual’s attendance and obtain any required approval.
Personal convenience, social custom, or the official host’s preference is not sufficient to establish a University business purpose.