Other Gift Cards
Other Gift Cards
Other Gift Cards
The issuance of other gift cards is allowed under specific circumstances after approval has been acquired. The university must remain tax compliant and adhere to internal cash control requirements. The IRS mandates that Rowan University track all payments issued to individuals and report applicable payments to the IRS. This method of purchasing gift cards is a paper-based process, which requires multiple mandatory forms and additional steps to remain in compliance with the IRS and the university’s cash control environment.
What are other gift cards?
Rowan University offers gift card services to the University as a payment mechanism for research and other approved items as specified in the Gift Card Policy. In certain circumstances when the use of the ClinCard system may not be the appropriate method to purchase gift cards, the Finance Division will review each gift card request and determine the most suitable option for the university.
Pre-approval is required for all gift cards. Fill out the required forms for approval to utilize gift cards.
Getting Started
To purchase gift cards pre-approval is required by completing the Gift Card Request Form. Once the request is approved, the administrator will notify the custodian with further instructions.
Presented below are materials to aid both new and existing users requesting other gift cards. We recommend new users review the Gift Card Policy, forms, and PowerPoint before requesting gift cards.
Gift Card Policy
Gift Card Forms
Gift Card Forms PowerPoint
Allowable/Appropriate Gift Card Purchases
| Type | Example |
| Awards | Participating in an event, activity or program |
| Participation | To encourage participation in a survey, event, activity or program |
| Human subject | Compensate human subject research participants |
| Incentives | To encourage participation in a survey, event, activity or program |
| Prizes | Door prizes or entered into a drawing/raffle |
| Survey | To encourage participation in a survey, event, activity or program |
Non-Allowable Gift Card Purchases
| Type | Explanation & Examples |
| Barnes and Noble | Gift Cards may not be purchased through the University’s Barnes and Noble account. |
| Bypass Procurement | Using gift cards to purchase goods in lieu of approved procurement methods. |
| Compensation -Employee/Student Worker/Research Collaborators | Compensation for work or education related activities (e.g. gift, bonus, incentive, reward, expression of recognition, special occasion, social function or meals) |
| Gifts | May not be purchased as gifts for individuals or events (e.g. employees, students, student workers, graduating students, collaborators, retirements, baby showers, etc.) |
| Goods / Services | May not be used to pay vendors for goods and/or services received and/or rendered or pay any type of wages for services rendered. |
| Out-of-pocket | Employees may not be reimbursed for out-of-pocket purchases of gift cards. |
| Over $100.00 | Payment must be made by Accounts Payable via Banner on a Non-PO Form for amounts greater than $100.00 per participant. |
| Personal usage | University funding may not be used to purchase gift cards for personal use. |
| Research Incentive | Gift cards may not be used to incentivize participants in human subject research studies unless pre-authorized by the IRB. |
| UPC Card | Gift cards may not be purchased using the University’s Procurement Card system. |
| Vendors / Suppliers | May not be used to pay University suppliers, independent contractors, guest speakers, consultants, honorariums or stipends at any time. |
Authorized Vendors for Gift Card Purchases
Only the following gift card purchasing option is available upon approval of the Gift Card Request Form. ClinCard is the University’s preferred method of purchasing gift cards. All other gift card purchasing methods will be reviewed to determine if ClinCard is more suitable. Select "Other Vendors" to review the steps for pre-approval, distribution & reconciliation process:
- Other Vendors – Purchasing gift cards from a Rowan approved vendor, requires pre-approval and a detailed explanation justifying the need for the specific purchase.
Tax Compliance for Gift Cards
The University must comply with Internal Revenue Service (IRS) regulations as it pertains to gift cards and gift certificates at all times. Under Internal Revenue Code Section 132, a gift card, gift certificate, store-value card, or a prepaid credit card, collectively referred to as a gift card, is considered a cash or cash equivalent that is subject to taxes regardless of the face value. As such, pertinent information must be collected from the recipient (recipient’s full name, TIN, address) prior to distribution of the gift card.
To ensure the University remains in compliance with the laws and regulations requiring tax reporting for certain payments to individuals, the following tax guidelines must be followed:
Employees/student workers
Employees/student workers who qualify for a gift card, including IRB-sanctioned research, will have the value added to their W-2 through Payroll regardless of the dollar amount for tax reporting purposes.
Non-employees
The value of gift cards given to non-employees is taxable and reportable income on IRS form 1099 IF the value of gift cards plus any other non-W2 compensation received by an individual from the University as a whole aggregates to an amount of $600.00 or more per calendar year. If the total dollar amount a non-employee receives is less than $600.00, it is the responsibility of the individual to report these earnings.
Custodian/Study Coordinator FAQs
What are gift cards?
Gift cards are considered cash equivalent. Under Internal Revenue Code Section 132, a gift card, gift certificate, store-value card, or a prepaid credit card, collectively referred to as a gift card, is considered a cash or cash equivalent that is subject to taxes regardless of the face value.
How can I obtain Gift Cards?
By completing a Gift Card Request Form, and sending your request to giftcards@rowan.edu.
How long in advance should I submit my request for gift cards?
Please submit the gift card request no less than two weeks before you will be distributing the gift cards. After you submit your request, you should receive an email confirmation. If you do not receive an email, please email giftcards@rowan.edu.
What forms am I required to complete to request, track and reconcile gift cards?
When should the Gift Card Recipient Log and the Gift Card Payment Acknowledgment forms be submitted?
The Gift Card Recipient Log and the Gift Card Payment Acknowledgment forms should be sent to Accounts Payable:
- Within 30 days of distributing the gift cards
- No later than January 5th for all gift cards distributed in the previous calendar year, due to the timing of IRS Form 1099 reporting.
Do I need to collect the SSN/TIN from the recipients of gift cards?
Yes, Social Security numbers are required for all individuals. According to the IRS, all payments made to individuals as compensation by an entity (in this case, Rowan University and all of its subsidiaries) are taxable by law (I.R.C. § 61(a)(1)). It’s not uncommon for participants to engage in multiple studies or activities which, in aggregate, exceed the $600.00 reporting threshold. The activities could range from payment for individual services, studies, direct payments to groups including the participant, etc. To comply, Rowan must obtain tax information for all participants, regardless of amount of payment to ensure we can issue a 1099-MISC form if necessary.
What is the necessary information I need to collect from recipients?
Gift Card Request Log & Gift Card Payment Acknowledgment need to be completed in their entirety to obtain all the necessary information.
How many Gift Cards can I redeem per request?
There is no limit on how many gift cards you can redeem; however, the custodian/study coordinator should not exceed $2,500.00 at any one time.
In what denomination can Gift Cards be purchased?
$5.00 through $100.00 per individual
What is the limit one individual can receive via gift card?
Gift amount should not exceed $100.00 per individual.
What if I want to provide an individual with a payment more than $100.00?
Submit a Non-PO Payment Request through the Accounts Payable department along with all the necessary documentation.
Can a Rowan employee or student worker receive a gift card for compensation or education related activities?
Gift cards/gift certificates may not be purchased with university funds for the purpose of giving an employee or student worker compensation for work or education related activities (e.g. gift, bonus, incentive, reward, expression of recognition, special occasion, social function or meals)
Can a Rowan employee receive a gift card?
Rowan Employee may only receive a gift card when participating in an IRB sanctioned study.
Can an enrolled student receive a gift card?
Students can receive gift cards when the incentive is to encourage participation (IRB sanctioned studies, surveys, awards, prizes); however, the department should utilize the RowanCard system instead of a gift card when feasible.
Will the gift cards you're purchasing be given out to individuals randomly chosen from a group as a prize?
Prizes must be pre-approved by completing a Gift Card Request Form, and you must record the recipients and submit that information on the Gift Card Recipient Log and the Gift Card Payment Acknowledgment.
When are the gift cards ready for use?
Gift cards are activated at time of purchase and are immediately ready to use. Always treat gift cards as you would cash.
Will the gift cards ever expire or lose value?
Depending on the vendor or third party seller, gift cards may expire or lose value.
Can I replace a lost or stolen gift card?
Depending on the vendor or third party seller gift cards may not be replaceable, for further instructions contact the custodian who issued the gift card.
What is the preferred method to purchase e-gift cards?
Amazon is currently the approved vendor for electronic gift cards.