Government Employee Prohibited From Gambling

Getting Employees on Board With Off-Site I-9s HR professionals know that Form I-9 must be filled out correctly, but off-site employees struggle to complete it without help. The paperwork is so complex that there are more than 900 pages of completion instructions from government handbooks, guides and websites. Federal rules prohibit employees from gambling while on duty, or while on government-owned or leased property. These restrictions apply not only to Federal employees, but also to members of the public at large, contractors, vendors, and exhibitors when on GSA-controlled property. Federal rules on gambling prohibit employees from gambling while on duty, or while on government-owned or leased property, unless necessitated by their official duties. These restrictions apply not only to Federal employees, but also to members of the public at large, contractors, vendors, and exhibitors when on GSA-controlled property.

03-2 Combined Federal Campaign Activities

1. Voluntary Participation
2. Use/Misuse of Appropriated Funds
3. Conflicts of Interest, Impartiality and Favoritism
4. Special Events, Games of Chance and Gambling
5. Improper Solicitations

U.S. DEPARTMENT OF AGRICULTURE - OFFICE OF ETHICS

ETHICS ISSUANCE: Number 03-2 - DATE: November 7, 2003 (Updated January 2018)

SUBJECT: COMBINED FEDERAL CAMPAIGN ACTIVITIES

1. Purpose

This Ethics Issuance establishes guidelines for applying the criminal conflict of interest statutes (18 U.S.C. §§ 202-208) and Standards of Ethical Conduct for Employees of the Executive Branch (5 CFR Part 2635) to employees who participate in activities related to the Combined Federal Campaign (CFC).

2. Authority

Titles II and IV of the Ethics in Government Act of 1978, as amended, Pub. L. No. 95-521, direct Executive branch departments and Federal agencies to administer an effective ethics program that must include training, counseling, financial disclosure reporting, and other related responsibilities. The program requirements for the ethics programs of executive departments or executive agencies are set out in 5 CFR Part 2638.

3. Definitions

Combined Federal Campaign (CFC), as defined at 5 CFR § 950.101, means the charitable fundraising program established and administered by the Director of the Office of Personnel Management pursuant to Executive Order No. 12353, as amended by Executive Order No. 12404, and all subsidiary units of that program.

CFC Coordinator means an employee appointed by a Federal agency, or agency component, to lead the CFC effort at that agency or component. The CFC Coordinator recruits a Campaign Committee, including Keyworkers, to help implement campaign plans

Gambling, means a game of chance that involves the furnishing of consideration, either through a participation fee or wagering (risking loss) of money or something of value in return for the possibility of winning a reward or prize. To be considered gambling, a game must have all three elements. As used in 5 CFR § 735.201, gambling includes the operation of a gambling device, conducting a lottery or pool, a game for money or property, or selling or purchasing a numbers slip or ticket.

Local Federal Coordinating Committee (LFCC) means the group of Federal officials designated by the Director, OPM to conduct the CFC in a particular community.

Principal Combined Fund Organization (PCFO) means the federated group or combination of groups, or a charitable organization selected by the LFCC to administer a local campaign under the direction and control of the LFCC and the Director, OPM.

Solicitation, for purposes of the CFC, means any action requesting money, either by cash, check, or payroll deduction, on behalf of charitable organizations. NOTE: For fundraising and gift purposes other than CFC, reference should be made to applicable provisions of 5 CFR part 2635.

4. General

The CFC is the only authorized solicitation of employees in the Federal workplace on behalf of charitable organizations [5 CFR § 950.102(a)]. Federal agencies traditionally take a very active role in encouraging employee participation in the CFC. The challenge to meet participation goals often results in creative methods used by agencies to involve not only employees, but non-Federal entities as well. At the same time, employee participation must not be coerced, and efforts to involve non-Federal organizations must not violate other existing ethical rules. The purpose of this issuance is to advise USDA CFC Coordinators, supervisors, managers and other Department officials concerning the applicable rules that govern operation of a CFC Campaign and provide common methods employed by agencies.

5. Controlling Statutes and Regulations.

• 18 U.S.C. § 205 - Activities of officers and employees in claims against and other matters affecting the Government.

• 18 U.S.C. § 208 - Acts affecting a personal financial interest.

• 5 C.F.R. § 735.201 - Gambling.

5 C.F.R. part 950 - Solicitation of Federal Civilian and Uniformed Service Personnel for Contributions to Private Voluntary Organizations.

• 5 C.F.R. Part 2635 - Standards of Ethical Conduct for Employees of the Executive Branch, specifically:

  • Subpart E - Impartiality in Performing Official Duties; and
    
  • Subpart G - Misuse of Position.

6. Voluntary Participation.

• 6.1. General Rule. You must take no action that removes, or could appear to remove, another's free choice to participate or not to participate as he or she chooses. This includes an employee's decision to give through the CFC or not give, to make donations public or remain confidential, and how much to give.

• 6.2. Permissible Encouragement. You may participate in and inform others of the opportunity to participate in special CFC non-solicitation events such as 'kick-off' events, victory celebrations, and non-monetary award activities. This includes sponsoring special CFC events permitted by CFC regulations, where approved by an agency head or other appropriate agency official, consistent with agency ethics requirements.

• 6.3. Impermissible Actions. Activities contrary to the non-coercive intent of Federal fundraising policy are not permitted in CFC campaigns. The following actions are specifically prohibited:

  • Solicitation of subordinates by supervisors;
    Note: This does not prohibit agency officials from allowing 'kick-off' activities or demonstrating support for CFC, and it does not prohibit individual supervisors from encouraging participation, such as through a broadly distributed memorandum.
  • Supervisory inquiries of employees' personal participation in CFC.
    Note: This does not preclude supervisors from receiving summary information about their organization's participation;
  • Publicizing an employee's choice to participate or not participate in CFC, if the employee seeks confidentiality;
  • Developing and/or using lists of non-contributors for any purpose;
  • Providing and using contributor lists for purposes other than routine collection and forwarding of contributions;
  • Use of the USDA incentive program or other monetary awards to reward donations or participation;
  • Establishment of 100% goals or personal dollar goals or quotas; or
  • Using as a factor in a supervisor's performance appraisal the results of the solicitation in the supervisor's unit or organization.

Government Employee Prohibited From Gambling Winnings

7. Use/Misuse of Appropriated Funds.

• 7.1. Permissible Uses. Since CFC is an official federal program, limited use of resources is appropriate. This normally includes expenditures related to 'kick-offs,' victory celebrations, non-monetary awards, official time for campaign activities, and other events to encourage support for CFC

• 7.2. Impermissible Uses. Use of appropriated funds to pay for refreshments, personal gifts, or other items not essential to support CFC is prohibited. Also, the use of appropriated funds to buy incentive trinkets for CFC key workers and coordinators is discouraged. Seek guidance from the Office of the General Counsel before using appropriated funds to purchase incentive trinkets or other items to support CFC.

8. Conflicts of Interest, Impartiality, and Favoritism

• 8.1. Service on Local Federal Coordinating Committees. If you serve on an LFCC, on the eligibility committee, or as agency fundraising program coordinator, you may not serve on the board of directors of any organization that serves the LFCC as its PCFO -- the local non-Federal organization that runs the CFC on behalf of designated charities. This could constitute a violation of 18 U.S.C. § 208 or other ethics rule. Consult the Office of Ethics if you serve on an LFCC, on the eligibility committee, or as agency fundraising program coordinator and serve on the board of directors of any organization that serves the LFCC as its PCFO.

• 8.2. Service on Boards of Charitable Organizations. If you serve on the board of a charitable organization that participates in CFC, or have an affiliation with such an organization, you may not participate in any official decisions that may appear to have a direct and predictable interest on that organization. Likewise, you should not communicate with any federal agency on behalf of the charitable organization, including an application for inclusion on the local list, as this could constitute a violation of 18 U.S.C. § 205 or other ethics rule. If you serve on the board of a charitable organization that participates in CFC, you also should avoid participating in eligibility determinations on behalf of the federal government, as this could constitute a violation of 18 U.S.C. § 208 or other ethics rule. Consult the Office of Ethics if you serve on the board of a charitable organization that participates, or seeks to participate, in CFC.

• 8.3. Actions Favoring Specific Charities. You may not:

  • Endorse or encourage employees to donate to a specific charity or federation of charities, whether privately or as part of a CFC “kick-off” event;
  • Solicit donations on behalf of a charity or federation of charities with which you have an affiliation; or
  • Permit a participant charity or federation of charities with which you are affiliated to make use of your official title, position, or authority, or using such yourself for the benefit of the charity.

  Such actions could create an appearance either of a loss of impartiality (5 CFR § 2635, Subpart E), or misuse of your official position for the benefit of others (5 CFR § 2635, Subpart G).

9. Special Events, Games of Chance and Gambling.

• 9.1. Permissible CFC Events.

  • Special events must be conducted during duty hours using methods that permit true voluntary giving and reserve to the individual the option of disclosing any contribution or keeping it confidential. Campaign kick-offs, victory events, awards, and other non-solicitation events to build support for the CFC are encouraged. CFC special events must be undertaken in the spirit of generating interest in the CFC and be open to all individuals without regard to whether an individual participates in the CFC. No funds may be raised or collected at these events.
  • No costs for food or entertainment at a special event may be charged to the CFC. If prizes are offered at special events, they must be modest in nature and value. Examples of appropriate prizes may include opportunities for lunch with agency officials, agency parking spaces for a specific time period, and gifts of minimal financial value. Contact the Office of Ethics for advanced review of special CFC events where prizes or gifts are offered to ensure the special event is consistent with Office of Government Ethics regulations and USDA regulations and policy.

• 9.2. Impermissible Events.

  • Events where the primary purpose is to solicit or collect cash donations, such as bake sales, chili cookoffs, book sales, silent auctions, raffles, lotteries, carnivals, athletic or similar events where items are sold for cash; or
  • Events that require CFC participation to attend; or
  • Events which include games of chance that constitute gambling, i.e., 'pay to play.' Pursuant to 5 C.F.R. § 735.201, employees generally are prohibited, while on Government-owned or leased property, or while on official duty, from conducting or participating in gambling activities. CFC event coordinators must avoid gambling when planning opportunities of chance (raffles, lotteries, door-prizes, etc.). Avoid planning events that involve the following three elements:
    • The donor wagering something of value (consideration);
    • Consideration is required to participate in an event involving chance; and
    • Which offers a reward or prize.

    Requiring consideration to participate in a game typically triggers application of the gambling rule. A game may be permissible at a CFC event if the only requirement to play is USDA employment, and participants pay nothing of value to enter. For example, door-decorating competitions, quizzes, guessing games with no requirement of donation as a condition of entry are acceptable. Contributions, entry fees, or expectation of a contribution are not permitted as a requirement for participation in a CFC event.

10. Improper Solicitations.

• 10.1. Soliciting Non-Federal Personnel. Contractor personnel, Credit Union employees, other non-Federal personnel employed on Federal premises, and Federal retirees may be offered the opportunity to make single contributions to the CFC by electronic means, including credit cards, if they so choose. However, under 5 CFR § 950.102(d), they may not be solicited to make contributions of cash, whether directly or indirectly.

• 10.2. Soliciting Outside Sources for Contributions. The CFC regulation simply permits solicitation of charitable donations from Federal employees in the Federal workplace. It does not authorize Federal agencies participating in CFC to solicit gifts to the agency from outside parties. Moreover, agency gift acceptance authorities should not be used to accomplish for CFC what cannot be accomplished under the CFC rules.

  Note: To the extent that such solicitation may be done, it is done on behalf of the CFC by the PCFOs.

An employee may engage in fundraising only in accordance with the restrictions in part 950 of this title on the conduct of charitable fundraising in the Federal workplace and in accordance with paragraphs (b) and (c) of this section.

(a)Definitions. For purposes of this section: (1) Fundraising means the raising of funds for a nonprofit organization, other than a political organization as defined in 26 U.S.C. 527(e), through:

(i) Solicitation of funds or sale of items; or

(ii)Participation in the conduct of an event by an employee where any portion of the cost of attendance or participation may be taken as a charitable tax deduction by a person incurring that cost.

(2)Participation in the conduct of an event means active and visible participation in the promotion, production, or presentation of the event and includes serving as honorary chairperson, sitting at a head table during the event, and standing in a reception line. The term does not include mere attendance at an event provided that, to the employee's knowledge, his attendance is not used by the nonprofit organization to promote the event. While the term generally includes any public speaking during the event, it does not include the delivery of an official speech as defined in paragraph (a)(3) of this section or any seating or other participation appropriate to the delivery of such a speech. Waiver of a fee for attendance at an event by a participant in the conduct of that event does not constitute a gift for purposes of subpart B of this part.

This section does not prohibit fundraising for a political party, candidate for partisan political office, or partisan political group. However, there are statutory restrictions that apply to political fundraising. For example, under the Hatch Act Reform Amendments of 1993, at 5 U.S.C. 7323(a), employees may not knowingly solicit, accept, or receive a political contribution from any person, except under limited circumstances. In addition, employees are prohibited by 18 U.S.C. 607 from soliciting or receiving political contributions in Federal offices, and, except as permitted by the Hatch Act Reform Amendments, are prohibited by 18 U.S.C. 602 from knowingly soliciting political contributions from other employees.

(3)Official speech means a speech given by an employee in his official capacity on a subject matter that relates to his official duties, provided that the employee's agency has determined that the event at which the speech is to be given provides an appropriate forum for the dissemination of the information to be presented and provided that the employee does not request donations or other support for the nonprofit organization. Subject matter relates to an employee's official duties if it focuses specifically on the employee's official duties, on the responsibilities, programs, or operations of the employee's agency as described in § 2635.807(a)(2)(i)(E), or on matters of Administration policy on which the employee has been authorized to speak.

(4)Personally solicit means to request or otherwise encourage donations or other support either through person-to-person contact or through the use of one's name or identity in correspondence or by permitting its use by others. It does not include the solicitation of funds through the media or through either oral remarks, or the contemporaneous dispatch of like items of mass-produced correspondence, if such remarks or correspondence are addressed to a group consisting of many persons, unless it is known to the employee that the solicitation is targeted at subordinates or at persons who are prohibited sources within the meaning of § 2635.203(d). It does not include behind-the-scenes assistance in the solicitation of funds, such as drafting correspondence, stuffing envelopes, or accounting for contributions.

Government Employee Prohibited From Gambling Rules

(b)Fundraising in an official capacity. An employee may participate in fundraising in an official capacity if, in accordance with a statute, Executive order, regulation or otherwise as determined by the agency, he is authorized to engage in the fundraising activity as part of his official duties. When authorized to participate in an official capacity, an employee may use his official title, position and authority.

Government Employee Prohibited From Gambling Laws

(c)Fundraising in a personal capacity. An employee may engage in fundraising in his personal capacity provided that he does not:

(1)Personally solicitfunds or other support from a subordinate or from any person:

(i) Known to the employee, if the employee is other than a special Government employee, to be a prohibited source within the meaning of § 2635.203(d); or

(ii) Known to the employee, if the employee is a special Government employee, to be a prohibited source within the meaning of § 2635.203(d)(4) that is a person whose interests may be substantially affected by performance or nonperformance of his official duties;

(2) Use or permit the use of his official title, position or any authority associated with his public office to further the fundraising effort, except that an employee who is ordinarily addressed using a general term of address, such “The Honorable,” or a rank, such as a military or ambassadorial rank, may use or permit the use of that term of address or rank for such purposes; or

(3) Engage in any action that would otherwise violate this part.

Government Employee Prohibited From Gambling Losses