Policy 1211: Gifts Based on University/Employee Relationships

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Financial Policies

Subject Area: Procurement/Disbursement
Responsible Office: Financial Services
Sponsor: Chief Financial Officer
Originally Issued: April 1994
Revised: March 1997, June 2005, February 2010, July 2014, September 2023
Refer Questions To: Shared Services Help Desk, 773-702-5800

Purpose: To specify the type of gift that may be made to a University employee or an employee’s immediate family from University funds.

Policy

The following modest, non-cash gifts of $500 or less (or gift cards of $50 or less) are allowed under this policy. Non-cash gifts greater than $500 must be approved in advance at the unit level by the senior finance staff member or their designee. Delegation of approval authority should be documented in writing. Approval of non-cash gifts greater than $500 should be granted only in rare and exceptional cases.

The following are examples of acceptable non-cash gifts based on University/employee relationships:

Medical Reasons—For a serious illness of an employee or employee’s immediate family member, or the birth or adoption of a child
Retirement—For an employee retiring from the University
Leaving the University or Department—For an employee leaving the University or transferring to another unit within the University
Years of Service Award—For recognition of years of service

The following are examples of acceptable cash or cash-equivalent gifts based on University/employee relationships:

Death of an employee or employee’s immediate family member—Note: Cash donations to other not-for-profit and charitable organizations in the name of a deceased employee or employee’s immediate family member are allowed up to $250 and must be approved by the senior finance staff member of the unit or their designee. Delegation of approval authority should be documented in writing.
Employee ‘Spot’ Recognition Awards—Rewards offered to employees for exceptional work performance. Such ‘Spot’ awards should not exceed $25, though units are encouraged to find other ways to show appreciation and recognize employees.

The following gifts are not allowed under this policy.

Gift cards in excess of $50
Gifts to employees for special occasions such as a birthday, wedding, or wedding anniversary
Employee ‘Spot’ awards in excess of $25

Gift cards are discouraged, but if used, cannot exceed $50. If the total value of all gift cards issued in a calendar year to a non-employee or student is $600 or more, an IRS 1099 form should be issued to the individual. If a gift card is given to an employee of the University, the full amount will be considered as income and added to the recipient’s W-2 earnings.

Expenses for gifts based on University/employee relationships must be charged to an unrestricted Financial Accounting System account (Ledger 2 or 4) using subaccount 9907, Non-Cash Gifts to Employees and Others.