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Policy and Procedure ManualChapter 260, Gifts and Endowments Responsible Department: Accounting & Financial Services This section outlines policy and procedures regarding presentation of non-cash gifts for business purposes to non-University individuals or organizations on behalf of the University. The following related issues are not covered by this section and are addressed in separate policies: A. Gifts and awards made to employees (Section 380-50; Personnel Policies for Staff Members, Policy and UCD Procedure 34). B. Entertainment expenses incurred when extending hospitality for business purposes to non-University individuals or organizations (Section 330-80). C. Non-cash gift presented to a host by an employee on travel status (Section 300-10). A. General policy It is the policy of the University that the presentation of gifts to non-University individuals or organizations is permitted only if it can be demonstrated that the gift benefits the University or is clearly necessary to the University's fulfillment of its role as a good community citizen. To avoid any appearance of favoritism, no officer or employee should present a gift that appears to be offered because of the position held by the recipient, nor should gifts be presented to a particular individual or entity frequently. 1. Individuals or organizations eligible to receive gifts include donors or potential donors (see also Section 260-35), visiting dignitaries and scholars, volunteers (including students), clientele, members of the local community, and elected or appointed officials. 2. Gifts may not be presented under this policy to the following: a. University employees or near relatives of University employees. b. Any elected official, candidate for public office, organization, or committee, when the gift is a contribution to a political campaign or referendum. c. Any person with whom a presenter has an outside business relationship, i.e., where any conflict of interest exists (Section 380-16). 3. The business reason for making the gift must be stated as a remark in a DaFIS document. In most cases, the promotion of goodwill in the University community is an acceptable business purpose. 4. Except for gifts of minimal value (e.g., T-shirts), the gift should be accompanied by a transmittal letter on official University letterhead that states that the gift was made on behalf of the University. (A card containing the same information may be substituted.) A copy of the letter (or card) should be included as part of the documentation submitted in support of the request for payment or reimbursement (see IV.C, below). 5. The cost of such gifts must be reasonable in relation to the actual or expected benefits (see IV.A, below). 6. Gifts of cash are not permitted. B. Approval of transactions 1. Department heads have the authority to approve requests to reimburse expenses for non-cash gifts presented on behalf of the University. This authority may not be redelegated. Department heads shall not approve their own request for reimbursement of gift expenses. 2. Gifts to elected or appointed officials (see IV.B, below) require the approval of the Associate Vice Chancellor--Finance. C. Exceptions 1. The Associate Vice Chancellor--Finance has the authority to approve exceptions to this policy. 2. An exception request must include a written justification as to why the higher cost or other deviation from policy is necessary to achieve a University business purpose. Such requests must specify the type of gift, the purpose of the gift, the special circumstances that require such an exception, and the name of the non-University individual or organization on whose behalf the exception is sought. A. Allowable gifts 1. Promotional items--gifts of tangible personal property that bear the logo of the University or campus, such as a T-shirt, cap, pennant, mug, or pen. These gifts should be minimal value ($75 or less per individual). 2. Appreciation or recognition items--gifts of tangible personal property such as tickets to a sporting, theatrical, or musical event, or a nonnegotiable gift certificate, and mementos such as a plaque, watch, logo item of more than minimal value, book, or the like. The cost of gifts in this category may not exceed $250 per individual. 3. Sympathy gifts--gifts such as flowers, candy, or a book. The cost of such gifts is limited to $75 per individual. B. Gifts to elected or appointed officials Allowable gifts may be presented to elected or appointed officials with the following restrictions. 1. Such gifts require the approval of the Associate Vice Chancellor--Finance. 2. Employees presenting gifts to California officials (i.e., public officials at all levels of government from the Governor on down to city and special district officials) should advise the recipients that pursuant to the Political Reform Act of 1974 such officials are required to report gifts aggregating $50 or more in a calendar year from a single source. Gift recipients who are public officials should also be aware of Federal and State limitations on acceptance of gifts by such officials. (See Section IV.D.2, below.) C. Funding sources 1. State funds a. Expenditures for gifts to non-University individuals or organizations may not be charged to State funds. b. Alcoholic beverage purchases may not be charged to State funds. 2. Contract and grant funds a. Federal, local government, and private contract and grant funds may not be used for gift expenses, unless such expenses are specifically authorized in the contract or grant and only to the extent and for the purposes so authorized. b. Alcoholic beverage purchases may not be charged to Federal funds. 3. Non-State funds Various non-State funds controlled by the University (e.g., endowments, gifts) may be used to purchase gifts, in accordance with University policy and subject to any restrictions, if any, on the funds. In the event of a conflict between the terms of the funding source and University policy, the more restrictive policy shall apply. D. Request for payment or reimbursement 1. Requests for payment or reimbursement of non-cash gift expenditures must be submitted on a DaFIS Direct Charge document. Each payment or reimbursement request must include a description of the gift with supporting documentation such as original receipts or acceptable electronic receipts. 2. University policy requires that the business purpose for making a gift be documented. To establish the existence of a business relationship, the name, title, and occupation of the gift recipient(s) must be included with the request for payment or reimbursement. a. Except for gifts of minimal value (e.g., T-shirts), a copy of the letter (or card) that accompanied the gift (see III.A.4, above) should be included with the request for payment or reimbursement. b. With respect to gifts to elected or appointed officials, the letter must also specify the fair market value of the gift, including meals and gifts of minimal value, and advise the recipient that California officials must report gifts aggregating $50 or more in a calendar year from a single source. (See IV.B.2, above.) Officials must also be cautioned to be aware of Federal and State limitations on acceptance of gifts. A copy of the letter (or card) should be attached to the request for payment or reimbursement. Further information may be obtained by calling Accounting & Financial Services, (530) 757-8758. VI. References and Related Policies A. UC Accounting Manual: 1. Chapter A-253-27, Administrative Fund Payments. 2. Chapter D-224-17, Delegation of Authority--Signature Authorization. B. UC Business & Finance Bulletins: 2. G-28, Policy and Regulations Governing Travel. 3. G-41, Employee Non-Cash Awards. 4. G-42, Gifts Presented to Non-Employees on Behalf of the University. C. Internal Revenue Service Code Section 274(b), Gifts. D. Internal Revenue Service Publication No. 463, Travel, Entertainment, Gift, and Car Expenses. E. UCD Policy and Procedure Manual: 1. Section 260-35, Donor Recognition. 2. Section 300-10, Travel Policies and Regulations. 3. Section 330-80, Entertainment with University-Controlled Funds. 4. Section 380-16, Conflict of Interest. 5. Section 380-50, Employee Non-Cash Awards. F. Personnel Policies for Staff Members, UC Policy and UCD Procedure 34, Incentive Awards. 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