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Contact UsThe use of University funds for gifts, prizes and awards must withstand the test of scrutiny by the University’s constituencies. Students, trustees, alumni, donors and granting organizations must be assured that funds are wisely spent for purposes related to the University’s mission.
If the recipient is a University employee, the amount of the gift, prize or award must be included in the recipient’s W-2 and is subject to all income and FICA withholding taxes. If the recipient is not a University employee, the amount of the gift, prize or award must be reported on a 1099-MISC form. Be aware that, in general, the tax reporting rules are the same for gifts as they are for prizes and awards, i.e., they are treated as taxable income to the recipient.
Your cooperation is requested in processing these items, which typically come to Accounting’s attention when an employee requests reimbursement for the gifts they have purchased for someone else at the University. When requesting reimbursement, you must identify the recipients of these gifts. Also please include their social security number (or Biola identification number), address and amount given to each individual (or the equivalent fair market value of each gift, if property other than cash is given.) We will be unable to process the request for reimbursement without this information. The same procedure must be followed for items purchased with a Biola credit card.
It is also important to inform the recipient of the income tax consequences of the gifts. The IRS rules and guidelines are clear on theses reporting requirements and Biola must comply with them.
Tax rules concerning gifts, awards, and prizes at a glance:
| Scenario | Exployee Taxable? | Student Taxable? | Non-employee/non-student Taxable? |
|---|---|---|---|
| Cash and gift certificates for any amount (non-tangible personal property, cash equivalent) | Yes | Yes | Yes |
| Tangible personal property-occasional, less than $50 | No | No | No |
| Tangible personal property greater than $50 (not part of the length of service award program) | Yes | Yes | Yes |
| Tangible personal property as part of the length of serivce program | No | Not applicable | Not applicable |
