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Section 15
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SECTION 15 – GIFTS, AWARDS, PRIZES, AND INCENTIVES
BACKGROUND
:
The Washington State Constitution (Article VIII section 7) prohibits gifts of public
funds. However, prizes, awards, and incentives (which might also be considered
gifts) in recognition of achievement or service may be considered allowable in
certain limited and controlled circumstances.
BASIC GUIDELINES
•
Gifts, prizes or incentives given in recognition of achievement or service
should be in the area of extra-curricular activities, not for recognition of
academic performance or good behavior in the classroom.
•
Items given to individuals for achievement or service should be non-monetary
and of nominal value. For example, a pin, plaque, trophy, key chain,
commemorative picture frame, or athletic sew-on letter may be allowed since
they have nominal value and no functional use.
•
The determination of “nominal value” is subjective. The District recommends
using a base-line of $20.00 per individual to measure nominal value.
•
Cash or cash equivalent awards, gift cards, gift certificates, and monetary
gifts
are not allowed
.
•
Any plans for gifts, prizes or incentives should undergo careful scrutiny and
pre-approval from the building principal or their designee.
•
Other factors to consider include:
o Who is the recipient? The entire student body, an entire class, a large
portion of the student body, or just a select few students?
o Why are they the recipient – what act of service or achievement have
they given and is the practice of giving them something or recognizing
them in some way being practiced consistently amongst all students
meeting certain appropriate criteria?
o What ASB funding source is paying for it? The general student body
funding sources such as ASB card money? or a specific ASB club
where funds were fundraised for specific purposes?
o The public and parent community might be especially sensitive to ASB
funds being used for gifts, awards and incentives.
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EXAMPLES OF GIFTS – NOT ALLOWED
:
Scenario #1
: An appreciation lunch was given to volunteer workers.
Conclusion
:
Not allowed
. This is either a payment for their services in which case
they cease to be volunteers and have received a salary, or it is a gift. The exception
to this is providing light lunches or refreshments during or near the time the
volunteer services are provided. The district’s policies for such meals and
refreshments should be met.
Scenario #2
: Flowers were purchased for someone in the hospital.
Conclusion:
Not allowed
. This is considered a gift and as such it is an illegal use
of public funds.
Scenario #3
: Food was purchased for a needy family.
Conclusion:
Not allowed
. This is considered a gift and as such it is an illegal use
of public funds. See the Charitable Fundraising section of this manual for guidance
on how donations can be accomplished using non-public funds, private monies.
Scenario #4
: A donation of club funds was made to a local charity.
Conclusion:
Not allowed
. This is an illegal use of public funds. ASB’s can not
make donations for any reason out of their club or activity money. See the
Charitable Fundraising section of this manual for guidance on how donations can be
accomplished using non-public funds, private monies.
Scenario #5
: Refreshments were purchased for non-student meetings such as a
staff appreciation day.
Conclusion:
Not allowed
. This could be deemed a gift to the individuals benefiting
from the meals or refreshments. In addition, there is no clear relationship between
the purchase of the food/refreshments and a legitimate ASB activity of a cultural,
athletic, recreational, or social nature. Accordingly, with some exceptions, it does
not appear to be an appropriate use of ASB Funds.
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PRIZES AND INCENTIVES:
Prizes and incentives are not recommended, but they may be an allowed recognized
part of fundraisers. (For example – students or classes who are “top sellers or meet
certain sale levels) The allowance of prizes or incentives must be carefully thought
out for appropriateness and controlled as far as inventory or disbursement of prizes.
Prizes and incentives come with many cautions depending on each fundraising’s
unique situation. The following are some guidelines and issues to consider whether
to allow prizes or incentives for a given fundraiser:
•
Advisors and students should be cautioned against prizes and incentives.
Encourage creativity and think of other ways to recognize or reward students.
(Award a prime parking spot for a month, do an icecream feed, give a
privilege.)
•
Motivation for participation in an ASB fundraiser should be for the sake of
having their club or activity benefit from the fundraising proceeds.
•
At a minimum, prizes or incentives for any one individual student should be
nominal (10 to 20 dollars worth is a guideline for nominal) and non-monetary
(can’t be a gift certificate or money).
•
It is recommended to negotiate with vendors for a higher profit commission
rate for the ASB rather than substantial prizes for students.
•
Any time a fundraising vendor offers free product, (i.e. sell 10 bins of cookie
dough and get one free) the free product is the property of the ASB and
should be treated as such.
•
It is not appropriate to give free product away, or allow students to profit
personally from the free products.
SOME EXAMPLES OF PRIZES OR INCENTIVES ALLOWED OR NOT
ALLOWED:
Scenario #1
: Snacks for students during WASL Testing days.
Conclusion
:
Not allowed
. This is not considered an appropriate use of ASB funds
due to the curricular nature of the activity at hand.
Scenario #2
: Tea, coffee and cookies for a Scholarship Award Ceremony
recognizing 50 scholarship recipients at a High School.
Conclusion
:
Allowed
. It is considered an allowable use of ASB funds. This event
is of a social nature, offered after school and is open for attendance by the
community, parents of students, and the students being recognized. Tea, coffee
and cookies would probably be nominal in expense per person (rather than a
catered expensive dinner event). Although the event has curricular ties – the actual
recognition event is considered a social event which may appropriately be funded by
the ASB.
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EXAMPLES OF PRIZES OR INCENTIVES ALLOWED OR NOT ALLOWED
continued:
Scenario #3
: Icecream feed for 8
th
grade class for breaking fundraising goal in an all
school fundraiser.
Conclusion
:
Allowed
. Large group of students benefiting in an award that is
nominal in cost per student as well as being a social event for the students.
Scenario #4
: Extra-credit points in class as a prize, incentive or award for
participation in an ASB fundraising event.
Conclusion
:
Not allowed
. Under the circumstances – it does not appear to be an
appropriate tie to curriculum or learning mission.
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