Carnegie Mellon Gift Policy

1
Carnegie Mellon Gift Policy

• http//www.cmu.edu/policies/documents/BusinessExpe
  nse.html
• Cash Gifts
• No reimbursement for cash gifts (cash or personal
  check) given to employees, students or guests.
  All cash gifts, regardless of amount must be
  issued as university checks and reported as
  taxable income to the recipient.
• Non-Cash Gifts worth 75 or more for Employees
• Defined as gift certificates, jewelry, clothing,
  office accessories, etc.
• If value is 75 or more it is to be reported as
  taxable income to the recipient.
• Non-cash gifts under 75 to employees permitted
  under current policy

2
Carnegie Mellon Gift Policy

• Non-Cash Gifts for Non-Employees
• The university may give gifts to lecturers or
  speakers to show appreciation for their time
  spent with the university community. The value of
  the gift should be reasonable (not more than
  250) and be awarded under conditions and
  circumstances that do not create a significant
  likelihood that the gift is disguised pay. In
  this and similar cases, individuals can purchase
  gifts with personal funds for the guest and
  request reimbursement from the university with
  department approval.
• Non-cash gifts under 75. The university may give
  inexpensive, non-cash gifts, such as gift
  certificates, Carnegie Mellon apparel or other
  tokens of appreciation to employees, students and
  guests. Individuals can purchase these gifts with
  personal funds and request reimbursement with
  department approval.

3
Carnegie Mellon Gift Policy

• Non-Cash Gifts worth 75 or more for Employee
  (Exception)
• Employee achievement awards will not be included
  in payroll records but must still be purchased
  directly with university funds. An employee
  achievement award is tangible personal property
  that meets
• all the following requirements
• It is given for length of service of five years
  or greater, no more frequently than every five
  years.
• It is awarded as part of a meaningful
  presentation.
• It is awarded under conditions and circumstances
  that do not create a significant likelihood of
  disguised pay.
• Employee gifts must be charged to the Employee
  Service Gift or Employee Gift object codes to
  ensure proper treatment for employee tax
  purposes.

4
Carnegie Mellon Gift Policy

• Need to enforce and educate individuals on
  current gift policy until revisions can be made.
• Most individuals purchase gift cards using their
  tartan trust card as a payment mechanism which is
  causing a number of findings in this area
• The IRS states that gift certificates (gift
  cards) are the same as cash gifts and should be
  treated as taxable income to the
  employee/recipient regardless of the amount
• Need a reporting mechanism to notify Payroll of
  all cash gifts/gift cards provided to employees
• Need a reporting mechanism to notify Payroll of
  all non-cash gifts given that exceed 75 and for
  tangible personal property greater than 400 to a
  long service or retired employee (need to
  validate thresholds)
• Need to revise the current policy to separate out
  cash gifts/non-cash gifts similar to the way
  other universities policies are written and
  re-consider IRS guidance regarding De Minimis
  Fringe Benefits, see separate handouts