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AP 8-61e – Gifts, Prizes, Awards, Honorariums, & Stipends (GPAHS)

Arapahoe Community College
Series 8 - Fiscal
AP 8-61e - Gifts, Prizes, Awards, Honorariums, & Stipends (GPAHS)

 

Originated: January 15, 2013

Revised: July 1, 2025

Effective: July 1, 2025

References: State Board for Community Colleges and Occupational Education (SBCCOE) Board Policy (BP) BP 8-61 – Accounting and Internal Controls

Approved:

Stephanie J. Fujii, Ph.D.
President, Arapahoe Community College

PURPOSE

This Process is to establish a guideline for using college or grant funds to provide gifts, prizes, awards, honorariums, or stipends to employees and non-employees during a fiscal year.

This Process contains pertinent information affecting employees, current through the date of its issuance. BPs and SPs are subject to change throughout the year and are effective immediately upon adoption by the Board or System Chancellor, respectively. Employees are expected to be familiar with and adhere to the BPs, SPs as well as College directives, including but not limited to this Process.

Nothing in this Process is intended to create (nor shall it be construed as creating) an express or implied contract or to guarantee employment for any term. The College reserves the right to modify, change, delete or add to this Process as it deems appropriate.

To the extent that any provision of this Process is inconsistent with State or Federal law, State Board for Community Colleges and Occupational Education Policies (BPs) or Colorado Community College System Procedures (SPs), the law, BPs and SPs shall supersede and control.

This Process incorporates the requirements established in BP 8-61 that apply and are referenced above.

SCOPE

This Process applies to all college departments using college or grant funds to provide gifts, prizes, awards, honorariums, or stipends to employees and non-employees during a fiscal year.

DEFINITIONS

Gift - Something voluntarily given without expectation of return or compensation for services.

Prize - An item or cash awarded based on change, competition, or performance. Usually won, not earned.

Award - A formal recognition of achievement, contribution, or performance.

Honorarium - A one-time payment for an occasional service. The recipient is not an employee of the Colorado Community College System (CCCS). It is taxable compensation, and a W-9 is required of the individual. Often used for guest lecturers or speakers. If a fee is prescribed by an individual or if it is negotiated, an honorarium situation does not exist. An individual receiving an honorarium payment cannot be a student or a CCCS employee.

Stipend - A fixed, regular payment to support work, training, or learning, not as wages or salary.

De Minimis Fringe Benefit - A benefit so small in value and provided so infrequently that accounting for it would be unreasonable or administratively impractical. ACC has set a threshold at $100.

Fiscal Year - July 1, through June 30 of the following year. (e.g., July 1, 2025- June 30, 2026).

Employee - Any person employed by CCCS within the last calendar year.

Non-Employee - Any person not employed by CCCS within the last calendar year.

W-2 - The IRS form reporting wages, tips, and other compensation for employees.

GUIDELINES

Employee

  • Cash or Cash-like items: Cash awards, gift cards, or stipends, awarded to an employee are taxable and should be included in wages, regardless of the value and regardless of the reason the employee is receiving the gift, prize, award, or stipend. These items will be included in the employee’s W-2 form.

  • Non-cash items: Any tangible gift, prize, or award given to an employee is subject to taxation if the value of the award is over the de minimis threshold of $100, (see definition of de minimis). Anything over the de minimis threshold of $100 will be included in the employee’s W-2 form.
    **This includes college branded promotional goods (SWAG) purchased with institutional general or grant funds that employees receive to participate in official college events or representing the institution**

Non-Employees

  • Cash or Cash-like items: Cash awards, gift certificates, gift cards, honorariums, or stipends are taxable to the recipient. The recipient is required to submit a W-9.

  • Non-cash items: Any tangible award is subject to taxation if the value exceeds certain limits. If the value of the award is over the de minimis threshold of $100, the recipient must complete a W-9 to receive the tangible award.

PROCESS

  1. Request Approval

    Complete the “Gift, Prize, Award, Honorarium, & Stipend” (GPAHS) request form with all required details and obtain necessary signatures.

  2. Ensure Tax Compliance Before Distribution

    Establish a plan to collect required tax documentation (e.g., W-9). For gift cards: Submit the GPAHS request form to the ACC Purchasing Department. Purchasing will acquire the gift card, which will be held by Fiscal Services until a valid W-9 has been received.

  3.  Unaddressed Scenarios

    This Procedure may not cover all cases. For clarification or special situations, contact Fiscal Services before submitting the GPAHS request.

UNALLOWABLE PURCHASES

Institutional general or grant funds may not be used to purchase:

  • Retirement Gifts

  • Birthday Gifts

  • Get well soon or Birthday Cards

  • Any other personal Gifts

REVISING THIS PROCESS

ACC reserves the right to change any provision or requirement of this Process at any time and the change shall become effective immediately.