College policy generally prohibits the use of College funds to purchase gift cards or gift certificates. This applies to all College accounts regardless of funding source, including student activities and grant-funded accounts.

The Internal Revenue Service (IRS) considers gift cards and gift certificates paid for services, including volunteers, to be payments of cash which must be treated as taxable compensation. These payments to employees and volunteers must be processed by the Payroll department. In addition, many students are employees of the College, and additional compensation could impact their financial aid eligibility.

There are limited circumstances where gift certificates and gift cards can be used. However, a clear understanding of the facts surrounding the situation is needed to ensure compliance with IRS rules. Alternative solutions may be available. Please contact BusinessOffice@kzoo.edu prior to purchasing the gift cards.

Request for reimbursement for the purchase of gift certificates will not be processed without prior purchasing approval from the Business Office.