Most prizes awarded to students for winning a contest or drawing are scholarships and must be processed as such. It does not matter what the "winnings" are called or where funding came from.
Winnings must be considered as a scholarship or fellowship if any of the following conditions apply:
- Eligibility to participate in the contest or drawing is restricted to students.
- The recipient is required to use the prize for educational purposes.
- The contest or drawing is related to the student's university courses or degree completion.
When the prize awarded for winning the contest or drawing is cash, a cash equivalent (gift card) or a non-cash item that can be used for educational purposes or to pay for expenses included in the student's cost of attendance, the value of the item must be recorded as a scholarship in the SIS. Items that cannot be used for educational purposes are not recorded in the SIS, but value limits must be in accordance with IU policies and should refer to Tax Standard Operating Procedure 9.03.