Policy Detail:

This policy provides guidance in this policy when purchasing prizes, awards, and gifts to give away. This policy provides the definition, examples, amount or value, funding, recipients, and approval for prizes, awards, and gifts. All vouchered transactions for prizes, awards, and gifts must be documented with the purpose, benefit (for prizes), and required approvals.

Growth, Quality, and Access (GQA) funds cannot be used for gifts, prizes, or awards.

Cash and cash equivalents, such as gift cards or gift certificates, may be given as prizes provided prior approval is obtained.

Cash and cash equivalent awards and gifts are prohibited.

The policy does not cover compensatory or scholarship awards.

This policy also covers awards given by the university to be used for professional development expenditures.

PRIZES:

Definition: Something of value conveyed as a result of chance, generally for promotional purposes, to one or more participants in a University sponsored event. If an individual pays for the chance to win a prize, State raffle laws apply. Holding a raffle requires prior approval; contact Business Services for more information.

Examples: Door prizes to encourage attendance at an event or as an incentive to encourage responses to questionnaires or surveys.

Amount or Value: Must be based on the minimum reasonable amount required to meet the objective of the promotional purpose not exceeding $200. Cash and cash equivalents, such as gift cards or gift certificates, may be given as prizes provided prior approval is obtained. Obtain approval by completing an Approval and Documentation for Prizes, Awards, and Gift Form. 

Funding:

• No General Purpose Revenue (GPR) may be used.
• No Growth, Quality, and Access (GQA) funds may be used.
• Revenue-generating activities may award prizes funded from their own proceeds to encourage student participation. Receipts generated from one activity must not be used to award prizes for an unrelated activity.
• Non-UW entities may award prizes directly to persons attending University-sponsored events, but must receive prior approval. Contact Business Services for more information.

Recipient: Student, staff member, or community member. However, a prize may not be awarded to a staff member unless the individual’s employment is incidental to the basis on which the prize is awarded. A Recipient of Prizes Log must be completed upon distribution of cash or cash equivalents and submitted to Business Services with the payment request.

Prizes are includable in the recipient’s gross income per IRS Code Sec. 74 (a); Reg. § 1.74-1(b) unless all of the following conditions are met:

• The recipient was selected without any action on his or her part to enter the contest; and
• The recipient is not required to render substantial future services as a condition to receive the prize; and
• The prize is transferred by the payer to a government unit or tax-exempt charitable organization as designated by the recipient.

Approval: Prizes given must be documented by completing an Approval and Documentation for Prizes, Awards, and Gift Form. The form should be attached to the payment request and submitted to Business Services. If purchasing cash or cash equivalents, written approval must be obtained by completing an Approval and Documentation for Prizes, Awards, and Gift Form prior to the event and submitting to Business Services.

AWARDS OF MINIMAL VALUE:

Definition: Something of minimal value conveyed as a result of competition, merit, or in recognition of the recipient’s service to the university.

Examples:

• Awards to recognize student achievements.
• Awards to recognize members of the community for providing service to the University.
• Awards to recognize employees for career milestones or distinguished service upon retirement.

Amount or Value: Certificates or plaques must be modest and have no intrinsic value. Items awarded must be of minimal value. Awards given to employees may not exceed $100. Exceptions to this must be approved by the Chancellor or Chancellor’s Designee.

Funding:

• General Purpose Revenue (GPR) may be used only for awards such as certificates or plaques that have no intrinsic value or for items of minimal value that have the University’s logo.
• No Growth, Quality, and Access (GQA) funds may be used.
• Athletic awards must be funded from program revenue sources.
• Use of gift funds is preferred.
• No cash awards are permitted.

Recipients: Student, staff, or community member. 

Approval: Awards given must be documented by completing an Approval and Documentation for Prizes, Awards, and Gift Form. This form should be attached to the payment request and submitted to Business Services.

AWARDS for PROFESSIONAL DEVELOPMENT

Definition: Awards given by the university to be used for professional development expenditures.

Examples:

• Teaching Excellence Awards
• Academic Staff Excellence Awards
• University Staff Excellence Awards

Amount or Value: A maximum of $1,500.

Funding:

• General Purpose Revenue (GPR) funds (Fund 102 and Fund 131 [non-GQA]) may be used for these professional development awards.
• Gift funds are to be used if an award is paid directly to the recipient.
• No Growth, Quality, and Access (GQA) funds may be used.

Recipients: Faculty, Staff, or Student(s).

Approval: Approval for expenditures is by the WISDM manager of the department(s) set up to account for the award(s). It is not necessary to complete the Approval and Documentation for Prizes, Awards, and Gift Form for these awards.

COMPENSATORY AWARDS

Definition: Compensatory awards may be given by a university division, college, or school to an employee through an approved and established award program for distinguished service, teaching, or research. The compensatory award needs to be processed through the UWL payroll process and include the cost of salary and fringe benefits.

Examples: An $2,000 award made by a college to a faculty member to recognize distinguished research.

Amount or Value: A maximum of $3,000 in salary.

Funding: Compensatory awards can only be funded with gift funds (Fund 233) through the UWL Alumni & Friends Foundation.

Recipients: Faculty or staff

Approval: Approval for compensatory awards will be provided by the Vice Chancellor or Dean of a university division, school, or college.

GIFTS:

Definition: A voluntary conveyance of something of value as a gesture of goodwill or appreciation.

Examples: A ballpoint pen with the University’s logo; a keychain with the University’s logo; a graduation stole with the University's logo.

Amount or Value: All gifts must be of minimal value and may not exceed $100.

Funding:

• No General Purpose Revenue (GPR).
• No Growth, Quality, and Access (GQA) funds may be used.
• No cash gifts are permitted.
• Use of gift funds is preferred.
• Program Revenue may only be used in the following circumstances:
• Gifts to distinguished visitors to campus.
• Gifts to recognize contributions of time or funding support by the public.
• Gifts to foreign nationals when university personnel are visiting other countries in which gifts are necessary, customary, and reasonable in cost.
• Graduations stoles provided to students upon the successful completion of their program.

Recipient: Student, staff, or community member.

Approval: Awards given must be documented by completing an Approval and Documentation for Prizes, Awards, and Gift Form. This form should be attached to the payment request and submitted to Business Services.