Frequently Asked Questions
A non-cash gift/award is any benefit, prize or award which is given to an employee or non-employee. This includes, but is not limited to, airline vouchers or miles, tickets to UA or community events, art work, clothing, parking passes, UAF logo items, mugs, etc.
Non-cash transactions may result in taxable income to the individual and/or reportable income to the Internal Revenu Service (IRS). The IRS requires the university to track such transactions
Each University of Alaska MAU is responsible for tracking non-cash transactions. UAF requires reporting of non-cash gifts/awards when the fair market value of the gift/award exceeds $50.
Per the IRS, "Fair market value (FMV) is the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowlege of the relevant facts."
The IRS reporting threshold is currenlty $600; however, it is cumulative for all non-cash gifts/awards received by an individual from all University of Alaska MAU's during the course of the calendar year. Each reported non-cash gift/award is entered into the Banner finance system to consolidate the information and arrive at the total given to each individual during the calendar year. So it might be that your UAF department has given an individual a gift valued at $75 and they then won an airline voucher from UAA valued at $495 and then won a jacket from UAF Athletics valued at $90. Since the IRS looks at UA as a whole, this would result in a total of $660 received by this individual, exceeding the IRS reporting threshold.
Both, a non-cash gift/award given to any person (employee, student, volunteer or, in general, any member of the public) must be reported to UAF. Non-cash gifts/awards given to non-employees must be reported when the fair market value of the gift/award exceeds $50; all non-cash gifts/awards given to employees must be reported regardless of the value.
Yes, items donated to the university and then given away as gifts/awards may result in taxable income to the individual and/or reportable income to the IRS. The IRS requires the university to track such transactions.
Yes. Remember, non-cash transactions are tracked because they may result in taxable income to the individual and/or reportable income to the Internal Revenue Service (IRS). The manner in which the university obtains the items is not taken into consideration for this purpose.
The following information must be reported for all recipients of a non-cash benefit, prize or award:
- Date non-cash benefit, prize or award was granted
- Brief description of benefit, prize or award
- Fair market value of benefit, prize or award
- Recipient's contribution - the value of a single raffle ticket, etc. (this is only required when the prize is due to the purchase of a raffle ticket)
- Recipient's name (legal name as provided to the IRS and/or SSA)
- Recipient's mailing address
- Recipient's Banner ID number (if applicable)
- Recipient's social security number or TIN
- Recipient's phone number (if available)
- US Citizen (Yes or No)
This information is required for IRS reporting. If it is determined that the gift/award results in potentially taxable income to the individual and/or reportable income to the IRS, the university must have all the information required for reporting to the IRS. The recipient's name must match the Social Security Administration (SSA) or the IRS records EXACTLY. Abbreviations are not allowable.
If the recipient does not give you his social security number, he should not receive the award. Failure to obtrain the required information from the recipient may result in IRS penalties to the university.
Non-cash benefits, prizes or awards with a fair market value exceeding $50 that are given to NON-EMPLOYEES must be reported to the Office of Finance & Accounting quarterly. Current calendar year reporting due dates may be found in the non-cash transactions reporting schedule. To avoid duplicate entries into Banner finance, each quarterly report should include non-cash transactions occurring only during that particular quarter and/or transactions that have not been previously reported.
Non-cash benefits, prizes or awards that are given to EMPLOYEES must be reported directly to UA Human Resources at the time of the award regardless of the value.
Yes, the non-cash transactions reporting template is to be used for reporting all UAF non-cash transactions having a fair market value exceeding $50.
The completed non-cash transactions reporting template for non-employees is to be emailed to email@example.com. As the report contains sensitive personal information, the file should be password encrypted prior to emailing. Your email transmission should include your phone number so OFA may contact you to obtain the file password. DO NOT include the file password in your email transmission.
The completed non-cash transactions reporting template for employees is to be emailed to UA HR. As the report contains sensitive personal information, the file should be password encrypted prior to emailing. Your email transmission should include your phone number so UA HR may contact you to obtain the file password. DO NOT include the file password in your email transmission.
The non-cash transactions reporting template is an Excel file and can be password encrypted using the features built into Excel and summarized here. REMEMBER, passwords are case sensitive and lost or forgotten passwords cannot be recovered.
One person (and a backup) in your office should be designated to coordinate distribution of awards/gifts and required reporting of non-cash transactions.
The Office of Finance & Accounting; Lynn Wrightsman, firstname.lastname@example.org, 907-474-6969.
Statewide Accounting and Administrative Manual, Section E-01, pages 8 through 10.