Recipient compensation refers to the use of cash, cash equivalents (such as gift cards or certificates), or tangible items to incentivize or reward participation in university activities or events. Common examples include payments to research subjects, incentives for survey or focus group participation, student or employee awards and event giveaways. Because these items are considered compensation by the university and the IRS, documentation of recipients is required.
Cash and cash equivalents are considered monetary compensation and have stricter reporting requirements than tangible items. This guide will focus on how to purchase gift cards and cash incentives and how to document recipients. Reporting on the recipients of tangible items will be handled on an as-needed basis.
Cash & Gift Cards
Research-related Activites
Follow Office of Research and Innovation puchasing procedures
Research-related activities aim to generate new knowledge for publication, presentation or formal reporting and often involve human subjects. These activities typically fall under IRB or Office of Sponsored Programs (OSP) oversight.
Digital Gift Cards
- Virtual Incentives: is a digital rewards platform for compensating participants in IRB-approved research projects. PIs manage their own accounts, enabling fast payments and customizable options. Participants can receive Visa eGift Cards with no processing fees or choose from 195 other brands.
- Each IRB-approved project gets its own program. Options include:
- Virtual Visa: Usable anywhere Visa is accepted
- GiftCard PASS: Recipients choose from selected brands (e.g., Amazon, Target)
- eGiftCard: Send a specific brand to all recipients
- To get started, email your completed VI template letter and current IRB approval to research-giftcards@unl.edu. A program will be set up for your study, and training will be provided.
Cash Incentives
- Request funds from the Bursar’s office by submitting a completed On-Campus Requisition form and current IRB approval to bursar@unl.edu. Only request enough for a maximum of three months, and allow one week for processing.
Non-Research Activities
Follow your unit's puchasing procedures
Activities like class assignments, employee events, alumni outreach or program assessments that do not generate or share new knowledge outside the university fall under non-research. These types of activites are non-research related even if they use research methods like surveys or focus groups.
Digital and Physical Gift Cards
- University Bookstore: Physical Visa gift cards are available in $25 increments
- PCard: Physical or digital cards are allowed, but you must obtain a PCard exemption prior to purchase
- Reimbursement: You may pay out-of-pocket and submit for reimbursement through normal channels
Cash Incentives
For non-research activities, cash incentives are discouraged—consult the Big Red Business Center before proceeding.
Documentation Requirements (All Activities)
Because gift cards and cash are considered forms of compensation, federal and university policies require accurate record keeping. Recipient documentation is required for both research-related and non-research-related gift card and cash incentive purchases.
To ensure compliance:
- Download and complete the Recipient Compensation/Award tracking form.
- Collect all required recipient information as indicated on the form.
- The completed form must be submitted along with your purchasing documentation for processing. Follow the process appropriate to your purchasing method.
Download Recipient Compensation/Award Form
Tangible Items
- Tangible items with a value of $50 or more are reportable.
- These purchases are rare across BRBC units.
- The BRBC will monitor purchasing documentation for reportable tangible items and will follow up with employees to collect any required recipient information.
Taxability
- Recipient compensation may be taxable if an individual meets the following thresholds in a calendar year:
- Students: $600
- Employees: $50
- Non-Affiliates: $600
- Recipient compensation provided to students may impact financial aid.
- Totals are tracked by P2P. Taxes will be applied to employees who meet the threshold. Tax documentation will be provided to students and non-affiliates who meet the thresholds.
Amounts Over $100
- Recipient compensation of more than $100 requires the collection of recipients’ Social Security numbers and signatures. The Big Red Business Center will follow up directly with any recipients who meet this threshold after you submit your spreadsheet.
- You do not need to collect this information yourself, but please inform recipients that they will be contacted by the business center to provide the necessary details.
Need Help?
Contact the Big Red Business Center with questions.