Monetary awards and cash equivalents are subject to personal income taxation. The recipient of the award or the awarding department/entity must cover tax liability. In addition, fringe benefit rates will be applied to the total transaction amount (gift plus gross-up, if applicable), creating an incremental cost to the issuing department. Utilization of gift certificates and other cash equivalents are discouraged due to transaction processing costs and additional financial implications for both the department and the recipient.

• A "cash equivalent" is any gift certificate, gift card or voucher that allows the purchase of or redemption for a product or service as if cash were being used.
• These may be purchased with the procurement card or reimbursed using the Miscellaneous Reimbursement Form following the Duke general accounting procedure under 200.021