General Rule The purchase of gifts with appropriated funds is prohibited. (i.e. if you work for the government be sure to look a gift horse in the mouth) The Comptroller General has consistently held that appropriated funds may not be used to purchase souvenir or gift-type items unless specifically authorized by law. The Comptroller General ruled that items such as decorative ashtrays, key chains, novelty cards, jackets, sweaters, caps, memento pictures, buttons, etc. were not a necessary, nor proper use of appropriated funds. Therefore, these items were viewed as personal gift items.

EXAMPLES OF ITEMS WHICH HAVE BEEN RULED IMPROPER:

• Novelty plastic garbage cans filled with candy in the shape of solid waste
• Key chains to be distributed as gifts to attendees of a seminar
• T-shirts with Combined Federal Campaign (CFC) logo for employees who contributed a certain amount.

Exceptions: When gift type items are allowable Items to promote recruitment (Military or civilian).

Examples could include: Pencils with Navy contact information for persons who wish to apply for a job. Lanyards or other nominal value items with the same information prominently displayed.

Awards:

Awards are made under the legal authority of 5 USC 4503 for civilians and 10 USC 1124 for military. There are 2 types of authority under these laws to give merchandise type awards:

• "Honorary awards" take the form of mementos of a symbolic, lasting trophy value, such as engraved plaques or medals, and are used for more formal recognition. Merchandise items such as coffee mugs or belt buckles bearing agency insginia may be used as subsitutes for the more traditional type of honorary award; however the cost of award should be "reasonable," meaning, the cost should not exceed the price range of a medal, certificate, or plaque normally used for honorary recognition. Generally the cost should not exceed $50 and the cost should never exceed $100.
• Awards may also take the form of "informal awards", which are lower cost awards which recognize contributions of lesser scope that might otherwise go unrecognized. Traditionally these have included such things as certificates and letters of appreciation. Merchandise awards can also be used as "informal awards". They must be of "nominal" value and could include non-lasting type items such as food or food vouchers or entertainment tickets, as well as lower-cost versions of the type of items given as honorary awards.

While use of merchandise awards rather than traditional type awards can provide valuable incentives, they should be used with great care to avoid the appearance of purchasing gifts. If you are considering purchase of awards, please refer to OPM guidance before approving any such purchases. And make sure that you document your purchase card files to indicate clearly that these items were bought as awards and not gifts.

Award Warning #1....

 Just like cash awards, honorary and informal awards must be related to a specific outstanding achievement. Whether the award is monetary or non-monetary, the act or service prompting it must be specifically related to official employment.

Award Warning #2....

Consider very carefully the quantity of merchandise awards being purchased to ensure it is appropriate to the act being recognized. Award items bought in too great a quantity will be questioned as to whether they are in actuality 'gifts' rather than awards. Merchandise awards given to large groups should be limited to nominal cost "informal awards".

Award Warning #3....

Do not purchase merchandise awards to be donated by the government "in the employee's name" to a charity. While this may be well-intentioned it violates laws governing government involvment in charitable programs. Award Warning #4.... Be very careful about using store gift certificates as informal (nominal value) awards. It is possible that these could be used for inappropriate purchases such as ammunition or liquor and you could be held responsible.

Award Warning #5....

Always use good judgment in approving award purchases. The OPM rules leave room for judgment because it is recognized that what may be an appropriate award for one group may not be for another. But don't "push the envelope". If it looks inappropriate to you, there's a good chance it will look inappropriate to others who may call the hotline to complain. This does no good for you, your activity or your awards program.