Finance Sub Committee
19th November 2013
Item 5.4
Gifts and Benefits
Section 14 – Gifts and Benefits
14.1
Aims
14.1.1
To ensure that no staff, trustees or students are unfairly compromised in
carrying out their duties on behalf of SUSU, and that all gifts and benefits
received are recognised as being that of the Student Union’s and where
appropriate distributed fairly and equally throughout the organisation.
14.1.2
To ensure that no tax or national insurance liabilities arises on SUSU as a
result of any gifts and benefits received my employees.
14.2
General Principles:
14.2.1
It is generally accepted that throughout business and when dealing with
suppliers and customers alike, gifts and benefits will very likely be offered
to SUSU employees, Trustees and Student leaders. Companies trading with
SUSU have marketing departments and budgets and it is clearly seen as a
way by them to encourage commercial activity between us. This procedure
sets out how such receipts should be treated.
14.3
Giveaways:
14.3.1
These are small gifts of low value normally containing some form of
advertising of the distributor, examples being Biro’s Pencils, highlighter
pens, stress balls, mints. These can be received through the post, or when
attending conferences, seminars, trade shows etc. The main benefit to the
recipient is minimal, and at most SUSU benefits from a marginal saving in
stationery costs. This is an acceptable non-disclosing gift.
14.4
Seminars:
14.4.1
From time to time seminars are offered by financial and professional
institutions, this tend to be networking events around a topical theme. These
are free to attend and last in general 2 to 3 hours delegates may receive
giveaways as above and also light refreshments. The main benefit to the
recipient is minimal perhaps some contribution to CPD. SUSU may benefit
from knowledge gained or experience shared. This is an acceptable nondisclosing gift.
14.5
Gifts:
14.5.1
Christmas tends to the time of year when suppliers are more likely send gifts
to their customers. Unhelpfully there is currently no de-minimus limit set by
the Inland Revenue although cost of gifts is likely to be £10 or less. Gifts
are likely to range from calendars, sweets, wine and possibly hampers. All
Finance Sub Committee
19th November 2013
Item 5.4
Gifts and Benefits
gifts that are received at SUSU are the property of SUSU as contracts with
suppliers are with the organisation, however it is the department manager
that is likely to be the initial recipient of the gift.
14.5.2
Christmas gifts received should be pooled and distributed fairly amongst all
SUSU staff, it is suggested that this is completed by a free raffle at the end
of the first term.
14.5.3
Should any member of staff receive a gift or inducement which has a face
value or estimated value in excess of £25 then this should be reported to
their line manager together with an explanation of the circumstances leading
up to the receiving of that gift or inducement..
14.6
Gifts used as an Inducement:
14.6.1
As a marketing tool suppliers may offer inducements to managers in order to
secure an increase in volume. This is where being in bulk will lead to either
free supply of further product or different products or to the supply of a nonattributable gift. In either case the additional supplies / gift belong to SUSU.
14.6.2
Product which is supplied FOC improves profit margin and therefore should
be encouraged provided sell by dates and storage allow. Gifts which are not
perishable should be treated like Christmas gifts in 14.5.2. otherwise made
available to all staff.
14.7
Promotional Gifts Prizes:
14.7.1
From time to time SUSU maybe party to some promotional activities by
suppliers that will involve rewarding SUSU staff / volunteers by the supplier
for achieving sales targets. In these incidents a contract is formed between
the employee and the supplier and therefore the reward is not the property of
SUSU. Departmental managers may however need to carefully manage
these activities to ensure fairness and equality across the staff involved
14.8
Benefits used as an inducement:
14.8.1
During the course of carrying out your duties, from time to time hospitality
maybe received. This could involve food or alcohol tasting. This can be
viewed as essential to the decision making ability of the staff involved on
which SUSU should ultimately benefit. There is no discernible benefit to the
employee
14.8.2
In the course of carrying out their duties some hospitality however will
result in preferential treatment, this is particularly relevant to student leaders
and relationships with night clubs.
Finance Sub Committee
19th November 2013
Item 5.4
Gifts and Benefits
Such preferential treatment can extend beyond free entry and use of the VIP
area, and encompass free drinks. Student leaders receiving such inducement
should declare this as a conflict of interest at the relevant committee meeting
and recorded on the conflict of interest register. Student leaders should also
consider the code of conduct.
14.8.3
As part of organising trips, student leaders / volunteers may be entitled to
receiving free places at certain levels of participation or even be rewarded
for signing up members to attend events. Students in this situation should
acknowledge this benefit and reduce the overall costs of the trip for all
attending alternatively they will be undertaking a role on the trip
14.9
Tendering Inducements:
14.9.1
Where SUSU is taking part in a tender process for services and the lead
member of staff for that tender receives an inducement form a tenderer then
the following steps should be taken.
1. The tender document should state that any gifts / inducements received
will be noted in the final recommendations report to the Trustees
2. Any Gifts / Inducements received will be formally acknowledged with
the supplier and other tenderers notified of the inducement.
3. The Trustees will receive as part of the recommendation report details of
all gifts and inducements received and then consider whether it is a
conflict of interest and unduly influenced the recommendation.
14.10
Bribes
14.10.1 It is the duty the Trustees of the charity to report to police authorities and the
charities commission any and all incidents of proven or alleged bribery. This
may consist of receiving money as a Trustee to influence the Trustee board
or for the charity to receive a “tainted” donation. The board may be required
to also seek professional advice to ensure that they properly carryout their
duties of a Trustee.
14.11
Tainted Donations
14.11.1 A tainted donation occurs when a charity and a donor enter into a connected
arrangement when a donation is made, the purpose of which is for the donor
or a related person to the donor receives an advantage from the charity.
These rules fall under tax evasion rules for the donor and exempt income
rules for the charity. Donations should be reviewed, and any other
contractual arrangements made at arm’s length.
……………………………………………….
Finance Sub Committee
19th November 2013
Item 5.4
Gifts and Benefits