U.S. DEPARTMENT OF COMMERCE
OFFICE OF THE CHIEF INFORMATION OFFICER

POLICY ON ACCEPTING IT GIFTS

What is the purpose of this policy?
Who does this policy apply to?
What laws and regulations relate to the acceptance of gifts?
What are gifts?
What is the general rule concerning personal gifts from non-Federal sources?
Are there exceptions to the general rule?
Under what circumstances may IT gifts be accepted?
What is the general rule concerning gifts between employees?
What is the rule concerning gifts to non-Federal employees?
What is the rule concerning the solicitation of gifts from non-Federal employees who work in the same office as Federal employees for holiday parties or similar events?
What is the policy regarding attendance at training provided by IT vendors?
What is the policy regarding attendance at a conference?
What is the policy regarding attendance at a reception or other widely-attended event?
Who can answer questions about this policy?

What is the purpose of this policy?

The purpose of this policy is to provide general guidance regarding the acceptance of Information Technology (IT) gifts, including software, hardware, accessories, and services.

Who does this policy apply to?

This policy applies to all Department of Commerce employees, including employees in the Office of the Secretary and operating units.

What laws and regulations relate to the acceptance of gifts?

5 U.S.C. § 7353 prohibits the solicitation or acceptance of anything of value from a person seeking action from, or doing business, with the government, except for such reasonable exceptions as provided for by the supervising ethics office.

5 CFR 2635.202 to 2635.205 in the Standards of Ethical Conduct for Employees of the Executive Branch provide government-wide standards for personal gifts to employees and their families.

The Department of Commerce Summary of Ethics Rules issued by the Office of the General Counsel, includes a section on personal gifts, including exceptions to the general rule on accepting personal gifts.

Department Administrative Order (DAO) 203-9, Gifts and Bequests prescribes policies and procedures for accepting gifts and bequests to the Department.

Department Administrative Order 202-739 Gifts and Decorations from Foreign Governments and to Foreign Individuals, prescribes the policy and procedure for acceptance and retention of gifts from foreign governments to Department employees.

The Ethics Law and Programs Division has a one-page summary on acceptance of gifts.

What are gifts?

Gifts are defined at 5 CFR 2635.203(b) as including “any gratuity, favor, discount, entertainment, hospitality, loan, forbearance, or other item having monetary value. It includes services as well as gifts of training, transportation, local travel, lodgings and meals, whether provided in-kind, by purchase of a ticket, payment in advance, or reimbursement after the expense has been incurred.”

Loans are considered as gifts because they may create an appearance of undue influence on Government employees.

What is the general rule concerning personal gifts from non-Federal sources?

You may not, in general, accept personal gifts from a person, company, organization, or other entity that has a contract, grant, or other business with the Department or is seeking such business; is regulated by the Department; is seeking action by the Department; or has interests that may be affected by performance of your Government duties. You also may not accept a gift given to you because of your Government position. Gifts to your spouse or minor children are considered gifts to you in most circumstances.

Are there exceptions to the general rule?

There are several exceptions to the general rule:

• gifts of $20 or less (other than cash) (up to $50 per year from the same source);

• gifts based on a personal relationship (such as from a relative or friend);

• invitations to widely-attended events (if from the host (generally) and if your supervisor approves attendance as in the interest of the agency);

• items of little intrinsic value (such as cards, plaques, trophies);

• discounts available to a broad range of persons;

• awards and honorary degrees (in specified circumstances);

• meals, lodging, transportation, and other benefits offered because of an outside business relationship or outside employment (or your spouse’s business or employment);

• business meals overseas, if a foreign national is present (up to the per diem for the city); and

• gifts from a foreign government (a gift of $305 or less may be accepted as a personal gift; a gift over $305 may be accepted on behalf of the United States Government). (The allowable gift amount is adjusted periodically.)

Under what circumstances may IT gifts be accepted?

You may only accept a gift (IT or otherwise) if an exception applies. For IT professionals, this means that you may accept from vendors token promotional items that are often distributed to participants at conferences (i.e., items of little intrinsic value). However, you may not accept, even as a loan, IT hardware, software, or accessories that retail for more than $20, and in some circumstances, you may not be able to accept a reward or prize given in a contest or random drawing. This applies regardless of whether the items worth over $20 are available at no cost to non-Government participants.

What is the general rule concerning gifts between employees?

You may not offer a gift to a supervisor or accept a gift from a subordinate. This applies to any type of gift, including IT hardware, software, and accessories. Exceptions include a gift on a special, infrequent occasion (e.g., a wedding, but not a wedding anniversary); items of $10 or less, given occasionally; food shared in the office; personal hospitality at one’s home; and a gift to a host or hostess.

There is no restriction on gifts from supervisors to subordinates, however, a supervisor should consider the perception concerns if offering a gift to a subordinate.

What is the rule concerning gifts to non-Federal employees?

In the IT community, Federal employees often work in the same office with colleagues who work under a contract between the Government and a private sector firm. The Commerce ethics rules govern the conduct of Federal employees and do not apply to employees of private sector firms. However, contract workers may be prohibited from accepting gifts of any amount under the terms of the employment contract with their employer.

What is the rule concerning the solicitation of gifts from non-Federal employees who work in the same office as Federal employees for holiday parties or similar events?

To celebrate the holidays, or when a co-worker retires, gets married, or has a new baby, it is not unusual for an office to have a party, inviting co-workers to the event and asking for contributions (note that in such cases, supervisors should not be asking subordinates for contributions). The general rule is that a Federal employee may not solicit a gift from a contract worker. With respect to an office party in which all participants are contributing equally to the costs, all persons attending, agency employees and contract workers alike, may be required to pay a proportionate share of the costs. However, it would not be permissible to ask the contract worker to contribute to a gift for a Federal employee, such as retirement or wedding gift. If a contractor independently learns that funds are being solicited for a gift, and voluntarily offers to contribute, he or she may do so up to $20 (but it cannot be a cash contribution directly to the Federal employee).

What is the policy regarding attendance at training provided by IT vendors?

It depends on the circumstances. If the vendor is providing training to promote its goods or services, free attendance would be considered a gift. Therefore, you may not attend unless an exception to the personal gift restrictions applies, such as if the value of the invitation is $20 or less. (Note that the widely-attended event exception, which is discussed below, may not be used to attend vendor training.)

If the value of the free registration is over $20 (and, therefore, no exception to the personal gift restrictions applies), it may be possible that the gift could be accepted on behalf of your agency. Note, however, that it is the general policy of the Department not to accept gifts from entities that are seeking business with the Department. Therefore, if the value is over $20, you should consult with the Ethics Law and Programs Division regarding whether you may attend.

Note that attending free training is permissible if it is provided under a Government contract or by a contractor to facilitate use of its services or products provided under a Government contract.

What is the policy regarding attendance at a conference?

It depends on the circumstances. A conference typically means a meeting, symposium, seminar, or other similar event related to your official duties. If the event is local, such as a business meeting, and there are no charges or fees involved, you only need supervisory approval to attend. However, if you are being offered something of value, such as free registration to a seminar, a meal, or transportation to the event, it is possible that the gift may be accepted on behalf of the Department or under one of the exceptions to the personal gift restrictions. If a situation arises, you should contact the Ethics Law and Programs Division for guidance.

What is the policy regarding attendance at a reception or other widely-attended event?

You may accept free attendance to a reception or similar event (even if it is valued over $20) if a determination is made that the event will be “widely-attended” and you receive approval from your supervisory based on a determination that the benefit to the agency in having you attend outweighs any appearance concerns.

An event is considered to be widely-attended if a large number of persons will be attending (usually more than 40, not including Government employees) and if they represent a diversity of views on a matter of mutual interest. This is often the case with events hosted by trade associations and professional societies. If the invitation is from someone other than the host, different rules apply. If the event is primarily entertainment, such as an invitation to a sports event or a concert, acceptance is usually not permitted. If you receive an invitation for free attendance to an event, you should consult with the Ethics Law and Programs Division to determine whether it meets the criteria for “widely-attended events.”

Who can answer questions about this policy?

For further guidance concerning this policy or to address a specific gift situation, please contact the Ethics Law and Programs Division at 202-482-5384 or ethicsdivision@doc.gov.

Date of policy superseded: None
Origination date: December 12, 2006
Approved by: Barry C. West, Chief Information Officer, January 9, 2007
Revision Date: Not applicable