Business Expense Policy - 08. Gifts

The university may approve using university funds for "de minimus gifts" to employees in the event of the death of an employee or an employee’s immediate family member, the serious illness or hospitalization of an employee, or the retirement of an employee. The university does not pay for gifts given for other occasions.

De minimus gifts are non-cash and valued at $100 or less. Common examples of de minimus gifts include flowers or fruit baskets. Under no circumstances are university funds to be used for the purchase of gift cards or stored value cards of any kind.

Gifts given to an employee with a fair market value of $100 or less for a calendar year are considered non- taxable. In very rare instances, a gift to an employee may have a value greater than the $100 threshold, however, any gift valued in excess of the $100 threshold must be reported as income to the recipient. The university is required to include the taxable amount in the employee’s W2 and to deduct withholding taxes from his/her paycheck. Gifts exceeding the respective threshold require a formal written exception request approved by a Vice President or Dean prior to incurring the expense and submitted to Accountspayablehelp@newschool.edu for documentation and evaluation.

The university suggests that departments first consider funding these with their own contributions. Gifts should be purchased using the university approved payment methods.

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