Building partnerships through collaboration.
The University at Buffalo supports the practice of recognizing community members, employees, and students for their merits and contributions in meaningful ways using gifts, prizes and awards. These items may not be lavish or extravagant, and must comply with funding source restrictions outlined in the Gifts, Prizes, and Awards Funding Chart.
Refer to the Chart to determine allowability based on funding source.
| Gift, Prize or Award | Details | Taxable Income Reporting Form and Tax Reporting | State Funds | UBF Funds | RF Non-Sponsored | RF Sponsored (1) |
|---|---|---|---|---|---|---|
| Employee Recognition Award | Must be a tangible item (preferably UB- branded) to recognize an employee's noteworthy work-related accomplishment. The award must be: occasional (not more than annual); must be presented on a basis that does not discriminate in favor of highly compensated employees, and must be of a reasonable amount. | No (6) | No | Yes (7) | No | No |
| Gift to recognize university faculty or staff at retirement or upon leaving a unit | Must be a tangible item (preferably UB- branded). A suggested guideline is $10 for every year of service or a reasonable amount. Must not discriminate in favor of highly compensated employees. The maximum value allowable is $400. Amounts in excess of $400 will be included on the employee's W-2 in accordance with IRS requirements. | Amounts in excess of $400 will be included on the employee's W-2 | No | Yes | No | No |
| Flowers or equivalent in conditional circumstances; reasonable amount and purpose | Must support our commitment to providing a great place to work and creating a culture of fairness and respect to all employees | No (6) | No | Yes | No | No |
| Employee incentives | Tangible property gifted to encourage employee participation in an event. Participation of the specific employee is based on that individual's subject matter expertise or experience. The use of UB-branded items is encouraged. Value must be de minimis. | No (6) | No | Yes | No | No |
(1) All expenses funded via an RF Sponsored account must be approved according to project sponsorship parameters
(2) Documentation to support the reasonableness of cost must be provided with the reimbursement request
(3) Varies, based on the terms of the award; contact Sponsored Projects Services
(4) Gifts and awards (cash and non-cash) must be totaled annually and reported to the IRS if the total exceeds $600 for a US citizen or any amount for a non-resident alien. Gifts, prizes, and awards to non-resident aliens are taxed at 30%.
(5) State funds must be supported by corresponding fee income where the gift, prize, or award is a component of the budget and is provided to the student
(6) Gifts, prizes, and awards to employees must be of de minimis value and are not taxable
(7) Cash awards may be provided to comply with donor intent of endowment or gift funds or to recognize student educational accomplishments; these awards are taxable income and will be reported via W-2 (for employees), 1099 (for U.S. students), or 1042 (for non-resident alien students) issued by the UBF
| Gift, Prize or Award | Details | Taxable Income Reporting Form and Tax Reporting | State Funds | UBF Funds | RF Non Sponsored | RF Sponsored (1) |
|---|---|---|---|---|---|---|
| Promotional item | Tangible promotional items must be UB-branded and distributed in a manner that supports the recipient's relationship with the university | No | Yes | Yes | Yes | (3) |
(1) All expenses funded via an RF Sponsored account must be approved according to project sponsorship parameters
(2) Documentation to support the reasonableness of cost must be provided with the reimbursement request
(3) Varies, based on the terms of the award; contact Sponsored Projects Services
(4) Gifts and awards (cash and non-cash) must be totaled annually and reported to the IRS if the total exceeds $600 for a US citizen or any amount for a non-resident alien. Gifts, prizes, and awards to non-resident aliens are taxed at 30%.
(5) State funds must be supported by corresponding fee income where the gift, prize, or award is a component of the budget and is provided to the student
(6) Gifts, prizes, and awards to employees must be of de minimis value and are not taxable
(7) Cash awards may be provided to comply with donor intent of endowment or gift funds or to recognize student educational accomplishments; these awards are taxable income and will be reported via W-2 (for employees), 1099 (for U.S. students), or 1042 (for non-resident alien students) issued by the UBF
| Gift, Prize, or Award | Details | Taxable Income Reporting Form and Tax Reporting | State Funds | UBF Funds | RF Non- Sponsored | RF Sponsored (1) | |
|---|---|---|---|---|---|---|---|
Appreciation or recognition of a student's noteworthy achievement or contribution to the university | Tangible items (e.g., UB-branded items, plaques, books, portfolios, or other items of similar value) | Tangible items with a value of $100 or more are taxable for domestic residents.
| Yes | Yes (7) | Yes | (3) | |
| Cash equivalent or noncash prize for participation in games of chance. Games of chance include raffles and door prize events where a participant pays money in return for a chance to win. Games of chance must be pre-approved by Financial Management and comply with the Raffle Policy for University Fundraising Events and all New York State gaming laws. | Prizes may be awarded only where benefits are expected to accrue to the university, such as a fund raising event. No prize may be awarded to an employee except where the individual's employment is incidental to the basis on which the prize is awarded. | Taxable
| No | Yes | No | No
| |
| Expression of gratitude to a donor for their contribution to the university | Must be a tangible item with the value tied proportionately to donor generosity. The value of each gift is limited to $200 and the donor may not receive more than two gifts per year. | No | No | Yes | Yes | (3) | |
| Recognition to members of governing boards, volunteers, and speakers | Must not exceed a reasonable hourly rate for services provided by volunteers or speakers based on the caliber of the individual and the content and complexity of the service | Taxable if value is $100 or more for domestic residents.
| No | Yes (2) | Yes | (3) | |
| Gifts as incentive to individuals (not human subjects) for participating in surveys, volunteering or other university programs | Participation must have a clear business purpose and support the mission of the university. Efforts should be made to provide UB-branded, tangible items. When such items are not sufficient incentive, cash equivalents are restricted to campus cash or prepaid debit cards when using State funds. With approval, gift cards may be provided when using UBF or RF funds. | All gifts, of cash and cash equivalents are taxable. Tangible items with a value of $100 or more are taxable for domestic residents.
| Yes (5) | Yes | Yes | (3) | |
| Consideration to students for services provided to the university for volunteer work or requested university programming | The student's contribution must directly support the mission of the university relate to a university initiative. Efforts should be made to provide UB-branded, tangible items. When such items are not sufficient incentive, cash equivalents are restricted to campus cash or prepaid debit cards when using State funds. With approval, gift cards may be provided using UBF or RF funds. | All awards of cash and cash equivalents are taxable. Tangible items with a value of $100 or more are taxable for domestic residents.
| Yes (5) | Yes | Yes | (3) | |
| Prizes awarded to the winners of academic or research competitions administered by university representatives | All competitions must be supported by the unit, have a sound business purpose, and a clearly communicated process for choosing the winners. Efforts should be made to provide UB-branded tangible items. When such items are not sufficient incentive, cash equivalents are restricted to campus cash or prepaid debit cards when using State funds. With approval, gift cards may be provided when using UBF or RF funds. | All awards of cash and cash equivalents are taxable. Tangible items with a value of $100 or more are taxable for domestic residents.
| Yes (5) | Yes (7) | Yes | (3) |
(1) All expenses funded via an RF Sponsored account must be approved according to project sponsorship parameters
(2) Documentation to support the reasonableness of cost must be provided with the reimbursement request
(3) Varies, based on the terms of the award; contact Sponsored Projects Services
(4) Gifts and awards (cash and non-cash) must be totaled annually and reported to the IRS if the total exceeds $600 for a US citizen or any amount for a non-resident alien. Gifts, prizes, and awards to non-resident aliens are taxed at 30%.
(5) State funds must be supported by corresponding fee income where the gift, prize, or award is a component of the budget and is provided to the student
(6) Gifts, prizes, and awards to employees must be of de minimis value and are not taxable
(7) Cash awards may be provided to comply with donor intent of endowment or gift funds or to recognize student educational accomplishments; these awards are taxable income and will be reported via W-2 (for employees), 1099 (for U.S. students), or 1042 (for non-resident alien students) issued by the UBF
| July 10, 2024 | ● Clarify that the Taxable Income Reporting Form is a UB form. | |
| August 31, 2023 | ● Revised the Employee as Recipient section to specify that retirement gifts in excess of $400 will be included in the employee's W-2 in accordance with IRS requirements (Gift to recognize university faculty or staff at retirement upon leaving a unit) ● Revised the Non-Employee as Recipient section to: ◦ Specify that all cash and cash equivalent gifts, prizes, and awards are taxable ◦ Add guidance for prizes awarded to the winners of academic or research competitions administered by university representatives | |
| October 7, 2022 | Revised the Non-Employee as Recipient section to allow the use of prepaid debit cards. | |
| November 29, 2021 | Revised the Employee or Non-Employee as Recipient section to remove guidance on face coverings. | |
| July 29, 2020 | Revised the Employee or Non-Employee as Recipient section to include guidance on face coverings. | |
| January 24, 2020 | Revised Footnote 7 to allow cash awards to be provided to students to recognize educational accomplishments. |
| Office | Contact | Phone | |
|---|---|---|---|
| State | Angie Rzeszut | 716-645-4533 | rzeszut@buffalo.edu |
| RF Non-Sponsored | Brendan Davis | 716-645-2602 | brdavis@buffalo.edu |
| Sponsored Projects Services | Mary Kraft | 716-645-4420 | mekraft@buffalo.edu |
| UB Foundation | UBF Accounts Payable | 716-645-3011 | ubf-ap@buffalo.edu |