Business meals are meals that have a bona fide College business purpose with business guests. A reasonable number of College employees are permitted to accompany each business guest to a business meal. Costs must be appropriate, given the College’s nonprofit status, and must also fall within any guidelines issued by the Vice President for Business and Finance.
When a guest of an employee attends a business meal, it is at the employee’s expense unless business guests are similarly accompanied. Meals and alcohol are not allowable expenses for off-campus meals where College employees are the only attendees. This policy does not apply to professional development activities such as faculty and staff retreats, as those have a bona fide College business purpose.
Business meeting meals for employees who routinely work together usually do not meet the test of an IRS approved business function. IRS regulations do not allow for the reimbursement of meal charges incurred by employees who are not traveling away from home (i.e. their travel does not include an overnight stay) unless 1) the primary purpose of the meeting is to conduct business, and 2) there is a clear and compelling reason to meet outside the office over a meal. College payment for business meals attended only by Rhodes employees which do not involve travel is only permitted if documentation supporting the meal clearly establishes the business purpose of the meal and that the business could not reasonably take place at any other time or in any other manner.
The College permits departmental units to hold special event meals or entertaining (related to a College program or employee milestone, such as a retirement) and holiday meals or celebration gatherings on a limited basis. Such meals should be both infrequent and non-routine.