Gift cards, regardless of the value, are considered cash equivalents by the Internal Revenue Service and are subject to tax reporting. Departments purchasing and distributing gift cards are responsible for compliance with IRS regulations and university policies.
When gift cards may be purchased:
Gift cards must have a value of $50 or less. Individual gift cards may not have a face value greater than $50 without prior approval from the Controller’s Office.
A gift card may be purchased if it is not for a specific person, but an event. For example, a department may purchase a gift card/certificate as a door prize. The receipt must specify the purpose of the expense.
- Gift cards may be purchased as a thank you for a volunteer as long as the volunteer is not an SCU employee, student, researcher, or a contractor currently under contract.
- Gift cards may be purchased for IRB approved research study participants. Disbursements of gift cards must be recorded in a log and include the participant’s name. For possible tax reporting requirements, we advise that the research study have the study participant’s address and social security available in the event the study participant received $600 or more in non-payroll payments from multiple University departments.
- Gift cards to students for emergency situations may be purchased and distributed only by the Office of Student Life. Please contact the Controller's Office with questions about gift cards for students.
When gift cards may NOT be purchased:
- Gift cards may not be purchased for SCU specifically identified active faculty, staff and student employees, students (undergraduate and graduate students) researchers or consultants employed by SCU. For example, a department may not purchase a gift card/certificate for an employee for achieving specific employment milestones.
- Gift cards may not be purchased as gifts for graduating students.
- Gift cards may not be purchased as holiday or other gifts to employees or students.
Gift cards may not be purchased to pay suppliers and consultants for goods and/or services received.