Gifts/Research Incentives

Recognizing an employee/non-employee of accomplishments, activities, or other valid business reasons.

Discretionary funds (ledger 35xxxx, 6xxxxx, and 7xxxxx) can be used for prizes and awards. State or grant funds are not permitted unless specified in the appropriation. Start-up funding is allowed.

The tax implications for gifts vary depending on the recipient’s NCSU employment status and citizenship. The documentation required for reimbursement will also depend on these factors.

• Employees:

• Non-Cash Gifts
  • May be taxable based on the item’s value. or the combined value of all gifts throughout the year.
  • ‘De minimis’ – (minor) gifts valued below $100 are not taxable provided the item’s value and other gifts, prizes, or awards presented throughout the calendar year to the employee do not exceed $100.00.
    • Examples include:
      • Tote bag
      • Mug/Coffee Cup
      • Clothing items
      • Blanket
      • Pens or Pencils
  • The University tracks de minimis gifts. To avoid tax implications, the combined value of all gifts, prizes, or awards received within a calendar year must remain under $100.00.
  • Items over $100 or cumulative gifts totaling over $100 must be reported to Payroll Services, as they are treated as taxable income. Additionally, each recipient’s citizenship status must be provided for ALL non-cash gifts.

• Cash or Cash Equivalent Gifts
  • ANY cash gift, such as a check or gift card, is reportable as income and subject to tax reporting.
  • All cash or cash equivalent gift purchases must include each recipient’s citizenship status. Depending on citizenship status, there are differences in tax implications and reporting.

• Non-Employees:

• Non-Cash Gifts
  • Subject to tax based on the item’s value or the combined value of all gifts throughout the year.
  • Taxable if the total value exceeds $600 within the calendar year or if the value of a gift is $600 or more. Exception: The $600 aggregate threshold will not hold for foreign nationals or non-resident aliens. All taxable gifts to nonresident aliens must be reported immediately.
  • Non-cash gifts, prizes, or awards given to non-employees must be tracked. Each recipient’s citizenship status must be provided, as tax implications and reporting requirements vary based on citizenship.
  • Gifts over $600 require reporting, and a 1099-MISC form will be issued. The non-employee will receive the 1099-MISC by January 31 of the following year.

• Cash or Cash Equivalent Gifts
  • All cash gifts will be tracked.
  • All cash or cash equivalent gift purchases must include each recipient’s citizenship status. Depending on citizenship status, there are differences in tax implications and reporting.
• View “Taxation of Gifts, Prizes, and Awards“

• Non-Cash Gifts/Prizes
  • Under $100.00: Complete the Non-Cash Gift spreadsheet
  • Over $100.00: Complete the Gift Recipient Form
    • Provide an itemized receipt that includes the merchant’s name, the date of purchase, a description of each item, the price, and the total price paid.
    • Important: You cannot be reimbursed for the non-cash gifts/prizes lacking:
      • The Gift Recipient Form
      • Recipient details on the Non-Cash Gift spreadsheet.

• Cash/Cash Equivalent Gifts
  • Complete the Gift Recipient Form for each recipient
    • Top section: Filled out by the purchaser/distributor
    • Bottom section: Completed and signed by the recipient.
    • Important: You cannot be reimbursed for gift cards that were not distributed or for gift cards for which the recipient did not complete a Gift Recipient Form.

Any payments made to human subjects as an incentive to participate in research.

• Researchers must obtain IRB approval for the specific research protocol before arranging payments or purchasing gift cards for research incentives.
• Per college policy, university P-Cards and Marketplace cannot be used to purchase incentives. Only reimbursements are allowed.
• Payments to recipients may be subject to taxation, which could affect the tracking of participants and should be discussed with the IRB.
• Incentives can be provided in the form of cash or gift cards.

Research incentive payments cannot be charged to state-appropriated funds. However, if permitted by the funding authority, these payments may be charged to Ledger 5, Ledger 6, Ledger 7, or start-up funds.

View Tax Implications under “Gifts/Prizes” – they remain the same.

• Non-anonymous gift card/cash incentive to a research participant
  • Complete the Gift Recipient Form for each recipient.
    • Top section: Filled out by the purchaser/distributor
    • Bottom section: Completed and signed by the recipient.
    • Provide an itemized receipt that includes the merchant’s name, purchase date, a description of each item, individual prices, and the total amount paid. If a gift card is sent directly to the recipient’s email, the receipt must also display the recipient’s email and indicate that it was “sent.”
    • Important: You cannot be reimbursed for gift cards that were not distributed or for gift cards for which the recipient did not complete a Gift Recipient Form.
• Anonymous gift card/cash incentive to a research participant
  • For platforms like Amazon Mechanical Turk (MTurk) or Prolific, please provide their activity log with unique participant numbers corresponding to the distributed incentives.
  • If the platform does not provide its own anonymous participant log, complete the Anonymous Research Incentive spreadsheet and attach it to your reimbursement request.