My questions relates to tax liability on gift certificates. I work as manager of Accounts Payable for a University. Our student organization has given out several gift certificates for Bowling and/or Billiard Party at the University Student Union Games Center. The value of the gift certificates is $200. The Games Center is donating the bowling lane fees and bowling balls and shoe fees for up to 18 people. There is no cost to the University for this part of the gift. In addition, the gift certificate covers the cost of Pizza that is served by our University Food Service. The cost of Pizza is $75. Question: Should we track this for 1099 reporting? Is there a tax liability to the recipient of the gift certificate? Is the tax liability just on the amount of the Pizza (cost to the University), or is it the total value of the gift certificate? Thank you for your help.