Office of the Provost
Faculty and Unclassified Staff Handbook Chapter 6 -- Business Affairs: General Regulations, Services, and Procedures
Gifts, Prizes, Awards and Promotional Items Purchased
Gifts, prizes, awards and promotional items can be purchased using
departmental (State) funds. Use of
departmental funds for the purchase of gifts, prizes and awards must be
approved in advance by the appropriate Vice President or delegate after
submission of a plan detailing the following:
- How the event supports the mission of
the university, division, and/or department.
- How the sponsor of the event will
collect all the necessary information to adhere to the rules and
regulations of the IRS and the State related to tax liability concerning
the value of the prize, gift, or award
- How the sponsor will safe keep the tax
information collected from the recipient by way of a W9 or W8BEN.
- How the department will pay or collect
the added cost of taxes in the case of required withholding due to IRS and
Upon approval by the appropriate Vice President or delegate, the plan
must be submitted to the Vice President for Administration and Finance for
review and final approval.
The sponsor should keep in mind that regardless of the value of the
gift, prize or award, the State and IRS require tax information be collected
and submitted to the accounts payable department before payment of the gift,
prize or award can be processed. In the
case of foreign nationals the IRS and State require mandatory withholding of
35% of the value of the item. In the
event the sponsor plans to pay for the added cost of the tax withholding the
department should plan to pay an additional 53% of the value of the gift, prize
or award over the prize value.
Definitions are as follows:
- Gift – Any cash equivalent given as a
token of appreciation or to establish good will. No action, such as entering a
competition, needed by the recipient.
- Prize – Any cash equivalent given as a
result of winning a competition or random drawing.
- Award – Any cash equivalent given for
- Promotional Items – Items advertising
Fort Hays State University given to a group of individuals not employed by
the university. The items must have
Fort Hays State University or an FHSU logo on it. The logo must be approved by University
Under no circumstance can state funds be used to purchase gifts, prizes,
awards or promotional items for employees.
Adopted by President's Cabinet (07/13/11).
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