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What Is Entertainment?

University of California Business and Finance Bulletin 79 contains several definitions that are important to consider before processing any transactions for business meetings, social events, or student programs.

• Entertainment is defined as "expenditures for meals or light refreshments and related services (e.g., labor charges, room rental, equipment rental, decorations, flowers, and similar expenditures) incurred in connection with events that are primarily social or recreational activities in support of the University’s mission. Such activities must support an underlying University business purpose such as promoting goodwill, donor cultivation, etc."

• Business Meeting expenditures are defined as "expenditures for meals or light refreshments and related services (e.g., labor charges, room rental, equipment rental, and similar expenditures) incurred in connection with meetings of employees to conduct official University business. At least one University employee or other individual representing the University must be present at any business meeting that includes non-University persons."

• Programmatic activities are meetings and events that are in keeping with the University’s mission. As a tax-exempt organization, the University may incur 'entertainment costs' that are in keeping with business purposes, such as expenditures for meals or light refreshments incurred in connection with student enrichment, training programs, food provided as a necessary part of a community-support activity (e.g., snacks at a blood donation event), and similar activities."

When corporations conduct entertainment, they are spending money they generate through sales. Generally, their intention for conducting entertainment is to generate more sales, whether that's by entertaining customers or staff. Most everything they do is "Bottom Line" oriented. Our use of funds for entertainment must be compatible with our stewardship responsibility and have a strong ethical component. We must be able to show that our entertainment expenses are necessary and in the best interest of the public.

Some funds may limit whether or not an account can be used for business entertainment expenses or social entertainment expenses.

Visit the Reimbursable Occasions page for a full list of the types of occasions that may be reimbursed by the university.

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