Gifting is an area that can be a minefield if one doesn’t know the rules concerning what a gift is, and what can and cannot be legally accepted under the ethics rules.
understanding the legal definition of a gift
First let’s start with what is considered a gift under federal rules. Defined it is “any gratuity, favor, discount, entertainment, exemption, exception, hospitality, loan, forbearance, or other item having monetary value. It also includes services, such as training, transportation, local travel, lodging and meals.”
Gift-giving rules apply to service members and also to their family members. The rules do not make a distinction between wounded and non-wounded, nor is there a distinction made between rank or grade. In the eyes of the rules, everyone is treated the same.
In general, military members and families can accept unsolicited gifts if the gifts are not offered due to a position held by the receiving individual or from a prohibited source. If one has contracting authority – the power to offer contracts – the gift cannot have any direct ties to the type of contracts awarded by that military member. However, that does not keep companies from trying to influence the individual into giving them a contract, so you must know the rules if you are to stay out of hot water and within the scope of the ethics intent. Ignorance of the law is not a defense you’ll win.
What is a prohibited source?
As far as the second part, a prohibited source is “any person or group that seeks official action from the employee’s agency; does or seeks to do business with his or her agency; conducts activities regulated by his or her agency; or has interests that may be substantially affected by the individual employee’s official duties.” In general, accepting gifts from a defense contractor is a big no-no in the ethics world. It is too easy to perceive that those gifts could influenced a decision favoring that contractor.
The $20 Rule – Fact or Fiction?
Ever heard of this rule? It is valid and says that if the gift offered has a value of $20 or less, and is not offered as cash, an individual may legally accept it. However, an individual may not accept over $50 per year from the same source.
This can include things like greeting cards, plaques, certificates, trophies, contest awards and prizes (as long as the contests were also open to the public) and other things having value less than $20.
What about bulk items?
Other items that are O.K. to receive are what is considered “bulk items”. For example, a local company donates coffee and pastries for an event for service members returning home from deployment and their friends and families. The value per person in most cases would be less than $20, but what about a bulk donation more than the $20 limit?
For example, a private company wants to outfit each member of a unit deploying with a new small tactical flashlight. Most of these costs more than $100 each. Is that allowed? Yes, it is … as long as everyone in that unit deploying gets one.
Many organizations like to donate money to a specific military organization, such as a deployed unit from their same town. To keep in line with gifting rules, the money should be donated to an official private relief agency with it then forwarded to the specific unit.
What about donated money and families of deceased military personnel?
One situation where military families are not normally bound by federal gifting rules is in the case of deceased military personnel. Assuming none of the immediate family members are federal employees – military or civilian – the rules of gifting do not apply. But if employed by a federal agency to include the military, then normal gifting rules do apply to the employed individual(s). This one can be tricky during this very difficult time.
Gifting can be a complicated issue and good intentions (on either side) can go quickly awry. The rules mentioned in this article are only the tip of the iceberg. For a complete list of gifting rules, go to the DOD website.
