Gift Cards

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Policy Number:
UW-3027
Old Policy Number:
350
Responsible Office:
Accounting Services, Division of Business Services

University Policy

Rationale/​Purpose:

This policy establishes standards for the purchase and use of gift cards and gift certificates which require strict accountability. Gift cards may only be purchased to be used for prizes and awards or to compensate research study participants.

This policy excludes scholarship awards or money awarded to students with the intent to support the educational or educational-related expenses of the individual receiving the award. For guidance on making any payment to students, refer to the Student Payment Guidelines. 

Definitions:
Award
In accordance with UW System Administrative Policy 330, recognition or something of value conveyed as a result of competition, merit or in recognition of services to the institution on the part of the recipient.
Custodian funds
Funds or accounts set up to serve the various cash-related needs of UW-Madison, such as paying research participants or business processes.
Non-resident alien
In accordance with the Internal Revenue Service, any individual who is not a U.S. citizen or U.S. national, and who has not passed the Green Card Test or Substantial Presence Test Certification.
Prize
In accordance with UW System Administrative Policy 330, something of value conveyed as a result of chance, generally for promotional purposes, to one or more participants in a university-sponsored event.
Purchasing Card Gift Card Approval Form
A form used to obtain pre-approval from a divisional business office to purchase gift cards on a UW–Madison purchasing card.
Purchasing Card Gift Card Recipient Log
A record used to track recipients of gift cards purchased with a UW–Madison purchasing card.
Scope:

This policy applies to UW–Madison employees with purchasing authority including, but not limited to:

  • Fund custodians, signers and reconcilers.
  • Purchasing cardholders and Workday Expenses module approvers.
  • Deans, directors, financial officers, and other campus leaders.
Policy:
  1. Introduction
    1. Gift cards are considered the same as cash by the Internal Revenue Service (IRS) and, therefore, are subject to tax reporting requirements.
    2. Gift cards may only be purchased for use as follows:
      1. Prizes
      2. Awards
      3. Compensation for research study participants
  2. Non-Institutional Review Board Gift Cards
    1. Gift cards may be purchased may be purchased as prizes or awards using a UW–Madison purchasing card when the following requirements are met:
      1. The gift card purchase aligns with the definition of either a prize or an award. 
      2. The gift card is approved by the divisional business office prior to purchase through the Purchasing Card Gift Card Approval Form. 
      3. The gift card is purchased for $50 or less.
      4. Only one gift card is given to each recipient during a calendar year (January 1 – December 31).
      5. The Gift Card Recipient Log is used by the department to document the name and contact information of each gift card recipient.
      6. The individual making the gift card purchase is accountable for the safekeeping of the gift card(s) and accounting for any unused gift cards.
    2. Gift cards must not be give to:
      1. UW–Madison employees except when the individual’s employment is incidental to the basis on which the gift card is given.
      2. Nonresident aliens. Due to immigration and tax regulations, all payments to nonresident aliens must be made through a Payment to Individual Report (PIR) or Direct Payment (DP).
  3. Institutional Review Board Related Gift Cards
    1. Gift cards may be purchased as payments to research participants using custodian funds or a purchasing card.
    2. Gift cards may be purchased as payments to research participants using a UW–Madison purchasing card only when the following requirements are met:
      1. The gift card is approved by the divisional business office prior to purchase through the Purchasing Card Gift Card Approval Form; if the gift card is purchased with grant money, Research and Sponsored Programs must approve the purchase prior to the divisional business office.
      2. The gift card is purchased for $50 or less or up to the amount provided in related grant agreements, which must be documented and submitted with the Purchasing Card Gift Card Approval Form.
      3. The Gift Card Recipient Log is used by the department to document the name and contact information of each gift card recipient.
      4. The individual making the gift card purchase is accountable for the safekeeping of the gift card(s) and accounting for any unused gift cards.
    3. Gift cards must not to be given to nonresident aliens. Due to immigration documentation and tax requirements all payments to nonresident aliens  must be made through:
      1. A payment to Individual Report (PIR), or
      2. Direct Payment (DP) due to immigration documentation and tax requirements.
  4. Noncompliance
    Gift cards may only be purchased with UW–Madison funds for the purposes described in this policy. Gift cards for any other purpose or gift cards purchased via alternate payment procedures/mechanisms are not payable or reimbursable by the university.
Related UW-Madison Policies:
Related UW–Madison Documents, Web Pages, or Other Resources:
External References:

Policy Administration

Approval Authority:
Assistant Vice Chancellor of Business Services and Controller
Policy Manager:
Director of Disbursement Services
Contact:
Cash Management, Custodian Funds -- Custodian Funds, cstdnfnd@bussvc.wisc.edu
Effective Date:
04-09-2019
Revised Dates:

04-09-2019, 04-20-2022, 08-17-2022, 07-01-2025

Reviewed Dates:

04-09-2019, 04-20-2022, 07-01-2025

Retrieved:
07-17-2025 21:51:56