Non-Cash Gifts/Awards & Raffles
A non-cash gift/award is any benefit, prize or award which is given to an employee or non-employee. This includes airline vouchers or miles, tickets to UA or community events, art work, clothing, parking passes, Ӱ logo items, mugs and more.
Non-Employees
Non-cash benefits, prizes or awards with a fair market value exceeding $75 given to non-employees require reporting to OFA quarterly. Current calendar year reporting due dates are provided below. To avoid duplicate entries into Banner finance, each quarterly report should include non-cash transactions occurring only during that particular quarter and/or transactions that were not previously reported.
Employees
Non-cash benefits, prizes or awards given to employees require reporting directly to UA Human Resources at the time of the award. Review the for complete information.
Raffles
The University of Ӱ holds a gaming permit issued by the State of Ӱ which allows university departments, entities and organizations to conduct raffles as fundraising events. A raffle is a game of chance in which a player pays something of value to purchase a medium (typically a numbered ticket) through which they may win something of value through a drawing or other method based on an element of chance. All raffles require coordination through Wood Center staff and administration in accordance with State of Ӱ Charitable Gaming Statutes and Administrative Code.
The value of a prize awarded through a raffle is considered taxable income to the recipient. Therefore, it may require the university to report the value of the prize to federal and state revenue agencies and to collect identity information about the winner. Wood Center staff must report to OFA prizes won as a result of the purchase of a raffle ticket when the prize is valued at $600 or more and the prize value is more than 300 times the cost of a raffle ticket.
Visit the Wood Center website for complete information on UA raffles.
Reporting
The required non-cash transactions report contains sensitive personal information. You should always password encrypt the Excel file before submitting it to OFA. Your email transmission should include your phone number, so we can contact you to obtain the file password. DO NOT include the file password in your email transmission. Contact our office if you need assistance with this.
Password encrypt an Excel spreadsheet (Excel 2010):
- In an open spreadsheet, select the File tab
- Click "Info"
- In Permissions, click “Protect Workbook”
- Select “Encrypt with Password”
- In the “Encrypt Document” box, type a password
Note: Passwords are case sensitive
When you select "Encrypt with Password," lost or forgotten passwords are not recoverable. Do not email or store the password with the encrypted file. Do not use easily guessable passwords.
A non-cash gift/award is any benefit, prize or award given to an employee or non-employee. This includes, but is not limited to, airline vouchers or miles, tickets to UA or community events, art work, clothing, parking passes, Ӱ logo items, mugs, etc.
Non-cash transactions may result in taxable income to the individual and/or reportable income to the Internal Revenue Service (IRS). The IRS requires the university to track such transactions.
Each UA Major Administrative Unit (MAU) is responsible for tracking non-cash transactions.
Ӱ requires reporting of non-cash gifts/awards when the fair market value of the gift/award exceeds $75.
Per the IRS, "Fair market value (FMV) is the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts."
The IRS reporting threshold is currently $600. However, it is cumulative for all non-cash gifts/awards received by an individual from all UA MAU's during the course of the calendar year.
Each reported non-cash gift/award is entered into the Banner finance system to consolidate the information and arrive at the total given to each individual during the calendar year.
It might be that your Ӱ department has only given an individual a gift valued at $75, but they also won an airline voucher from UAA valued at $495 and won a jacket from Ӱ Athletics valued at $90. Since the IRS looks at UA as a whole, this would result in a total of $660 received by this individual, exceeding the IRS reporting threshold.
Both. A non-cash gift/award given to any person (employee, student, volunteer or, in general, any member of the public) must be reported to Ӱ.
Non-cash gifts/awards given to non-employees must be reported when the fair market value of the gift/award exceeds $75. All non-cash gifts/awards given to employees must be reported regardless of the value.
Yes, even items donated to the university and then given away as gifts/awards may result in taxable income to the individual and/or reportable income to the IRS. The IRS requires the university to track such transactions.
Yes. Remember, non-cash transactions are tracked because they may result in taxable income to the individual and/or reportable income to the Internal Revenue Service (IRS). The manner in which the university obtains the items is not taken into consideration for this purpose.
The following information must be reported for all recipients of a non-cash benefit, prize or award:
- Date non-cash benefit, prize or award was granted
- Brief description of benefit, prize or award
- Fair market value of benefit, prize or award
- Recipient's contribution - the value of a single raffle ticket, etc.
(this is only required when the prize is due to the purchase of a raffle ticket) - Recipient's name
(legal name as provided to the IRS and/or SSA) - Recipient's mailing address
- Recipient's Banner ID number (if applicable)
- Recipient's social security number or TIN
- Recipient's phone number (if available)
- US Citizen (Yes or No)
This information is required for IRS reporting. If it is determined that the gift/award results in potentially taxable income to the individual and/or reportable income to the IRS, the university must have all the information required for reporting to the IRS.
The recipient's name must match the Social Security Administration (SSA) or the IRS records EXACTLY. Abbreviations are not allowable.
If the recipient does not give you their social security number, they should not receive the award. Failure to obtain the required information from the recipient may result in IRS penalties to the university.
You must report to OFA any non-cash benefits, prizes or awards with a fair market value exceeding $75 given to NON-EMPLOYEES on a quarterly basis.
You must report to UA Human Resources any non-cash benefits, prizes or awards given to EMPLOYEES at the time of the award regardless of the value.
Yes, use the "Non-Cash Transactions Reporting Template" below for reporting all Ӱ non-cash transactions having a fair market value exceeding $75.
Email the completed reporting template for non-employees is to our office. You should always password encrypt the Excel file before submitting it to OFA and include your phone number in the email. DO NOT include the file password in your email transmission.
Email the completed reporting template for employees to UA HR. You should always password encrypt the Excel file before submitting it to HR and include your phone number in the email. DO NOT include the file password in your email transmission.
One person (and a backup) in your office should be designated to coordinate distribution of awards/gifts and required reporting of non-cash transactions.
Our staff are happy to answer questions and help navigate non-cash gifts/awards & raffles.