For Tangible Gifts
The proposed value of the gift/item should be proportionate to the time and effort required for the study. An overly valuable gift can be deemed “undue influence” or coercive (e.g., giving an expensive gadget for participating in a short survey).

For course credit / extra credit
There are no university policies for using class credit / extra credit as compensation for student participation in research. You can follow this document for best practices: https://rec.spalding.edu/files/2024/10/REC-Best-Practices-for-Using-Extra-Credit-in-Research.pdf

For “Draws”
If you plan to include a draw for a chance to win a gift card or other prize for your study, this may be determined to be an illegal lottery under the laws of Tennessee. To comply with Tennessee law, participants must be able to enter the prize draw without the obligation to participate in the study and with equal odds of winning. See 2025 Tennessee Code Title 47 – Commercial Instruments and Transactions Chapter 18 – Consumer Protection for more information.

For Vouchers and Gift Certificates
Vouchers and gift certificates are classified as non-monetary compensation. This is because they are not direct cash, check, or electronic money transfers. However, the IRS treats vouchers and gift certificates as cash equivalents; regardless of amount, they are considered taxable income. MTSU applies similar tracking, approval, and reporting as they do to for cash or gift cards. See conditions below.

To learn more about non-monetary compensation, kindly read 659 Gifts, Prizes, and Awards – University Policies

❌ PI’s are strictly prohibited from using P-Cards or personal cash to purchase gift cards / vouchers / gift certificates.

These payments are categorized based on thresholds, which determine the conditions of acceptable methods of payment, distribution, and routing. 

For Payments Under or Equal to $100 

1. Authorized options include cash or electronic/physical gift cards. 
2. The payment must not exceed one hundred dollars ($100.00) per individual payment, per participant. Total payments from the university must not aggregate to less than six hundred ($600.00) annually to be eligible without immediate issuance of 1099-MISC.
3. Cash or physical gift cards should be hand-delivered to the participant whenever possible and not sent through the mail. If participant payments must be mailed, the preferred method is to process a check or direct deposit through Accounts Payable. 

For Payments Greater than $100  

1. Payment must be issued via official check or direct deposit. Applies to any payment greater than one hundred dollars ($100.00). 
2. Must be processed through the accounts payable system.