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Federal Gift Rules: What Employees Need to Know

·10 min read

A thoughtful gift begins with what you know about the person. Notice their routines, interests and the things they use every day.

Start with a comfortable budget, then choose one clear direction. A practical upgrade, something to enjoy together or a personal note can make the choice feel considered.

Check the details before buying: size, materials, current availability and the seller’s return policy. Keep a gift receipt when the recipient may want a different option.

Make the occasion your own. Add a short note about why you chose the gift, and leave room for the recipient’s preferences.

The $20 Rule: Gifts From Outside Sources

A thoughtful gift begins with what you know about the person. Notice their routines, interests and the things they use every day.

  • Its aggregate market value is $20 or less per source, per occasion, and
  • The total you accept from that one source stays at $50 or less for the calendar year.

A few details trip people up:

  • Check the details before buying: size, materials, current availability and the seller’s return policy. Keep a gift receipt when the recipient may want a different option.
  • Make the occasion your own. Add a short note about why you chose the gift, and leave room for the recipient’s preferences.
  • A thoughtful gift begins with what you know about the person. Notice their routines, interests and the things they use every day.
  • Start with a comfortable budget, then choose one clear direction. A practical upgrade, something to enjoy together or a personal note can make the choice feel considered.
  • Check the details before buying: size, materials, current availability and the seller’s return policy. Keep a gift receipt when the recipient may want a different option.

Gift Cards: The Line Between "Store" and "Cash"

Check the details before buying: size, materials, current availability and the seller’s return policy. Keep a gift receipt when the recipient may want a different option.

Who Counts as a Prohibited Source?

Under § 2635.203(d), a prohibited source is any person or organization that:

  1. Is seeking official action by your agency;
  2. Does business — or seeks to do business — with your agency;
  3. Conducts activities regulated by your agency;
  4. Has interests that could be substantially affected by how you do (or don't do) your job; or
  5. Is an organization whose members are mostly people described above.

A thoughtful gift begins with what you know about the person. Notice their routines, interests and the things they use every day.

What Doesn't Count as a Gift at All

Start with a comfortable budget, then choose one clear direction. A practical upgrade, something to enjoy together or a personal note can make the choice feel considered.

  • A thoughtful gift begins with what you know about the person. Notice their routines, interests and the things they use every day.
  • Start with a comfortable budget, then choose one clear direction. A practical upgrade, something to enjoy together or a personal note can make the choice feel considered.
  • Discounts and benefits available to the public or to all government employees as a class.
  • Prizes in contests open to the public, as long as entering wasn't part of your official duties.
  • Loans from banks on terms generally available to the public.
  • Anything you pay market value for, and anything paid for by the government.

Gifts Between Federal Employees: The $10 Rule

Check the details before buying: size, materials, current availability and the seller’s return policy. Keep a gift receipt when the recipient may want a different option.

  • Check the details before buying: size, materials, current availability and the seller’s return policy. Keep a gift receipt when the recipient may want a different option.
  • A supervisor may not knowingly accept such a gift — and may never coerce one.
  • A thoughtful gift begins with what you know about the person. Notice their routines, interests and the things they use every day.

Gifts flowing down the chain are fine: a supervisor may give gifts to their team.

A thoughtful gift begins with what you know about the person. Notice their routines, interests and the things they use every day.

  • Non-cash items worth $10 or less in aggregate per occasion;
  • Food and refreshments shared in the office among several employees;
  • Make the occasion your own. Add a short note about why you chose the gift, and leave room for the recipient’s preferences.

Start with a comfortable budget, then choose one clear direction. A practical upgrade, something to enjoy together or a personal note can make the choice feel considered.

Special Occasions: When Bigger Gifts to a Boss Are Allowed

Check the details before buying: size, materials, current availability and the seller’s return policy. Keep a gift receipt when the recipient may want a different option.

  1. A thoughtful gift begins with what you know about the person. Notice their routines, interests and the things they use every day.
  2. Events that end the reporting relationship: retirement, resignation, or transfer.

Make the occasion your own. Add a short note about why you chose the gift, and leave room for the recipient’s preferences.

A thoughtful gift begins with what you know about the person. Notice their routines, interests and the things they use every day.

Quick Reference: Common Scenarios

Scenario Allowed? Why
$15 store gift card from a contractor at a holiday party Yes Under $20 per occasion; store cards aren't cash equivalents
$25 general-use prepaid Visa card No Cash equivalent — excluded from the $20 exception
Coffee and donuts at a vendor meeting Not a gift Modest refreshments outside a meal are excluded
$10 plant for your supervisor during the holidays Yes Within the $10 rule for traditional gift occasions
$25 wine for your boss's 50th birthday No Birthdays aren't "special, infrequent occasions"
Chipping in for a retiring supervisor's group gift Yes Voluntary, nominal contributions on a terminating occasion
Free sandwich from the same vendor every week No Recurring gifts suggest using office for private gain, even under $20

What to Do With a Gift You Can't Accept

Start with a comfortable budget, then choose one clear direction. A practical upgrade, something to enjoy together or a personal note can make the choice feel considered.

  1. Check the details before buying: size, materials, current availability and the seller’s return policy. Keep a gift receipt when the recipient may want a different option.
  2. Make the occasion your own. Add a short note about why you chose the gift, and leave room for the recipient’s preferences.
  3. A thoughtful gift begins with what you know about the person. Notice their routines, interests and the things they use every day.
  4. Gifts from foreign governments follow a separate disposal regulation (41 CFR part 102-42).

Check the details before buying: size, materials, current availability and the seller’s return policy. Keep a gift receipt when the recipient may want a different option.

When to Decline Even a Permissible Gift

Make the occasion your own. Add a short note about why you chose the gift, and leave room for the recipient’s preferences.

Keeping Office Gifting Easy — and Under the Limit

A thoughtful gift begins with what you know about the person. Notice their routines, interests and the things they use every day.

Start with a comfortable budget, then choose one clear direction. A practical upgrade, something to enjoy together or a personal note can make the choice feel considered.

Check the details before buying: size, materials, current availability and the seller’s return policy. Keep a gift receipt when the recipient may want a different option.

Frequently Asked Questions

Can federal employees accept gift cards?

Make the occasion your own. Add a short note about why you chose the gift, and leave room for the recipient’s preferences.

How much can a federal employee accept from one company in a year?

A thoughtful gift begins with what you know about the person. Notice their routines, interests and the things they use every day.

Can I give my federal supervisor a birthday gift?

Start with a comfortable budget, then choose one clear direction. A practical upgrade, something to enjoy together or a personal note can make the choice feel considered.

When can coworkers give a boss a bigger gift or collect money for one?

Check the details before buying: size, materials, current availability and the seller’s return policy. Keep a gift receipt when the recipient may want a different option.

What should I do with a gift I'm not allowed to accept?

Make the occasion your own. Add a short note about why you chose the gift, and leave room for the recipient’s preferences.

Do federal gift rules apply to gifts from friends and family?

A thoughtful gift begins with what you know about the person. Notice their routines, interests and the things they use every day.

Frequently Asked Questions

Can federal employees accept gift cards?

Sometimes. A gift card redeemable only at a specific store or restaurant can be accepted under the $20 exception if it's worth $20 or less and unsolicited. A general-use prepaid card issued by a credit card company or bank is treated as cash, which is never acceptable under that exception.

How much can a federal employee accept from one company in a year?

Under the $20 de minimis exception, gifts from any one source can't exceed $50 in aggregate market value per calendar year — and a 'source' includes a company plus its officers and employees combined. Each individual occasion is also capped at $20, and you can't pay the difference to accept something pricier.

Can I give my federal supervisor a birthday gift?

Yes, within the $10 rule: on an occasional basis — including birthdays and holidays when gifts are traditionally exchanged — you may give an official superior non-cash items worth $10 or less in total. Milestone birthdays don't unlock bigger gifts; OGE's own example says a $25 bottle of wine for a boss's 50th is not allowed.

When can coworkers give a boss a bigger gift or collect money for one?

Only on special, infrequent occasions: events of personal significance like marriage, illness, bereavement, or the birth or adoption of a child, and events that end the reporting relationship, like retirement, resignation, or transfer. Group collections must be voluntary, in nominal amounts, and anyone asked must be told they can give less or nothing.

What should I do with a gift I'm not allowed to accept?

Return it promptly or pay the donor its market value. A tangible item worth $100 or less may instead be destroyed. For perishables like flowers, your supervisor or agency designee can approve sharing them in the office, donating to charity, or discarding them. Prompt action on your own initiative means no violation — and OGE encourages documenting it.

Do federal gift rules apply to gifts from friends and family?

No — there's an exception for gifts clearly motivated by a family relationship or personal friendship rather than your position. Ethics officials look at the history and nature of the relationship and whether the friend personally pays. A 'friend' whose employer foots the bill doesn't qualify.

Sources

  1. eCFR — 5 CFR Part 2635, Subpart B: Gifts From Outside Sources (current text)
  2. eCFR — 5 CFR Part 2635, Subpart C: Gifts Between Employees (current text)
  3. U.S. Office of Government Ethics — Understanding Gift Exceptions
  4. U.S. Office of Government Ethics — LA-15-04: Treatment of Gift Cards under the $20 De Minimis Gift Exception
  5. Cornell Law School LII — 5 CFR § 2635.204: Exceptions to the gift prohibition

Topics

Gift EtiquetteGift ExchangePlanning Tips

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