Gifts: Students or Employees
Gifts to students or employees from any PISD funding sources are not allowed. This includes Activity Funds and Club Accounts. A gift is a gratuitous offering for personal benefit that does not serve a legitimate educational interest. For example, birthday presents, Secretary’s Day, Valentine’s Day, Christmas Holiday, etc. presents and acknowledgments for other personal occasions are considered gifts. For these occasions, employees may contribute personal funds. These funds are not to be run through activity or club accounts.
PISD Fund 865 Clubs are allowed by law to make charitable donations to organizations or community projects that qualify under IRS Section 501(c)(3) as charitable organizations. Donations or gifts to individuals are not allowed.
Employees are allowed to receive morale incentives with PISD funds such as books or other educational merchandise valued at $25 or less. Cash, petty cash checks, and gift cards are not allowed.
Awards and Prizes for Students
If the individual award, prize, incentive, or payment is greater than or equal to $100, have the student complete both the IRS Form W-9 and the information below and submit to the Business Office.
Other than scholarships, any award, prize, incentive, payment, or gift given to a student is 100% taxable. Cash is taxable at its amount and merchandise is taxable at its fair market value. It is the responsibility of the student to enter these amounts as taxable income on their tax return. If the value of any awards, prizes, incentives, payments, or gifts total $600 or greater in a calendar year, PISD must issue a 1099-MISC to the student and PISD must file it with the IRS. Cash, petty cash checks, gift cards, and gift certificates are not allowed. All incentives must support individual student achievement, be educational in nature, and in alignment with the District’s primary mission and goals.
- The award listed below is appropriately related to the purpose of the educational program and serves as a reasonable way to motivate students to achieve the specified goals of the program from which the funds were expended.
- The award is directly linked to a motivational activity which is part of the school’s plan to facilitate academic or related achievement. This activity is described and justified below and is logical and reasonable in value.
Student Taxable Award Form
Awards and Prizes for Employees
Employees are allowed to receive morale incentives with PISD funds such as books or other educational merchandise valued at $25 or less. Cash, petty cash checks, and gift cards are not allowed. Door prizes also fall into the category of morale incentives. If gift cards are donated to the District, then they become PISD property and should not be given as individual prizes. Gift cards donated to a campus may be used to benefit a group. For example, if the campus receives a donation of a gift card for a restaurant, then it should be used to purchase food for staff and not any one individual. Gift cards for merchandise cannot be given to individuals. They must be used to purchase merchandise for the campus. However, if the gift card is not donated to the District, the vendor can give it directly to an individual as a door prize and it is the vendor’s responsibility for any IRS reporting, if any, and the vendor is not able to claim an IRS deduction for the gift card.
Employee Achievement Awards
Recognition of Special Effort or Outstanding Performance
Awards for employee achievement or outstanding performances, except Length of Service and Safety Awards, should be tangible property valued up to $25, such as flowers, books, trophies, plaques, etc. Cash, petty cash checks, gift cards, gift cards, and gift certificates are not allowed.
Safety Awards
Awards of tangible property valued up to $400 given to employees are allowed. Safety awards must be part of a meaningful presentation. Cash, petty cash checks, gift cards, gift cards, and gift certificates are not allowed.
Length of Service Awards / Retirement Awards
Service awards of tangible property valued up to $400 are allowed and must be part of a meaningful presentation and given to an employee no more than once every five (5) years. Cash, petty cash checks, gift cards, gift cards, and gift certificates are not allowed. Service awards/retirement awards may not be made within the employee’s first five (5) years of service or more frequently than every five years. An employee cannot receive two retirement gifts from the District. Thus, an employee cannot receive a service/retirement award from the campus and another from the District within a five year period.
Failure to follow the award guidelines for employees will result in taxable income reported to the IRS for the employee.