2 FAM 960 SOLICITATION AND/OR ACCEPTANCE OF GIFTS BY THE DEPARTMENT OF STATE (2024)

UNCLASSIFIED (U)

2 FAM 960

SOLICITATION AND/OR ACCEPTANCE OF GIFTS BY THE DEPARTMENTOF STATE

(CT:GEN-577; 02-02-2022)
(Office of Origin: L/M)

2 FAM 961 SCOPE AND APPLICABILITY

(CT:GEN-452; 04-28-2016)

a. The Department of State has the authority to acceptgifts made for the benefit of the Department of State or for carrying out itsfunctions.

b. There are two types of gifts: in-kind, such as goodsor services; and cash donations. For the purpose of Federal income, estate,and gift taxes, any gift, devise, or bequest accepted by the Department isdeemed to be a gift, devise, or bequest to and for the use of the UnitedStates. In some circ*mstances, donations may be treated for Federal taxpurposes as unreimbursed business expenses (see 2 FAM 962.6-1, paragraph b).

c. To ensure that the acceptance and use of thesegifts further the Department’s interests to preserve the integrity ofgovernment, and to avoid actual impropriety or the appearance of impropriety,Department officials may solicit, accept, and use gifts on behalf of theDepartment only in accordance with the provisions in this subchapter.Department officials must also follow the provisions governing solicitation inthis subchapter when soliciting gifts on behalf of outside organizations. Tothis end, Department officials should ensure that all employees involved insoliciting, accepting, or using gifts become thoroughly familiar with thecontents of these provisions.

2 FAM 961.2 Scope

(CT:GEN-431; 11-07-2014)

The provisions in this subchapter govern the acceptanceand use of gifts to the Department of State from nonfederal sources and thesolicitation of gifts for the Department, when such solicitation assists theDepartment in carrying out its official functions in the United States andabroad. In general, a gift is offered for the “carrying out (of)official functions” if the gift, once accepted, would be used tosupplement or take the place of funds appropriated to the Department orotherwise further authorized Department activities.

2 FAM 961.3 Authorities

(CT:GEN-431; 11-07-2014)

The authorities for the activities in this subchapterinclude:

(1) Foreign Service Buildings Act of 1926, Sec. 9, asamended (22 U.S.C. 300);

(2) State Department Basic Authorities Act of 1956,Sec. 25, as amended (22 U.S.C. 2697);

(3) Foreign Assistance Act of 1961, Sec. 695(d), asamended (22 U.S.C. 2395(d));

(4) Migration and Refugee Assistance Act of 1962, Sec.3(a)(2), as amended (22 U.S.C. 2602);

(5) Foreign Gifts and Decorations Act, as amended (5U.S.C. 7342 and 22 CFR 3);

(6) Acceptance of travel and related expense fromnonfederal Sources (31 U.S.C. 1353);

(7) Mutual Educational and Cultural Exchange Act of1961 (Fulbright-Hays), Sec. 105(f) and Sec. 108A, as amended (22 U.S.C. 2455(f)and 22 U.S.C. 2458(a)), and

(8) 41 CFR 301 and 41 CFR 304.

2 FAM 961.4 Definitions

(CT:GEN-431; 11-07-2014)

For the purposes of these sections, the followingdefinitions shall apply:

(1) “Gift” means anything with anascertainable market value for which the recipient does not pay market value,including donations of cash, or donations of loans of goods, services, and realproperty;

(2) “Gifts of travel” means payment by anonfederal source or a foreign government of travel expenses for officialtravel; Reference 2 FAM 962.12for guidance;

(3) “Nonfederal source” includes anyindividual, private, or commercial entity other than the U.S. Government,including but not limited to corporations, nonprofit organizations orassociations, international or multinational organizations, and foreign, state,or local governments;

(4) “Public diplomacy purposes abroad”means programs or initiatives which advance the Department’s mission byengaging with foreign publics through informational, educational and/orcultural programs and similar outreach efforts in order to strengthenunderstanding of the United States, including its society, culture, politicsand values; build public support for U.S. policies; and further mutual understanding.Public diplomacy purposes abroad are distinguishable from representationaluse. Reference 2 FAM 962.9 forguidance; and

(5) “Representational use” means use forthe establishment and maintenance of relationships beneficial to the UnitedStates; Reference 2 FAM 962.7for guidance.

2 FAM 961.5 Abbreviations

(CT:GEN-569; 03-25-2021)

The following abbreviations apply:

(1) Office of the Legal Adviser: L;

(2) Office of the Legal Adviser – Ethics andFinancial Disclosure: L/EFD;

(3) Office of the Legal Adviser – Management:L/M;

(4) Office of the Legal Adviser – PublicDiplomacy: L/PD;

(5) Office of Emergencies in the Diplomatic andConsular Service: CGFS/EDCS;

(6) Bureau of Overseas Buildings Operations: OBO;

(7) Bureau of Overseas Buildings Operations –Planning and Real Estate: OBO/PRE;

(8) Bureau of Overseas Buildings Operations –Resource Management – Office of Financial Management: OBO/RM/FM;

(9) The Secretary’s Office of GlobalPartnerships: S/GP;

(10) Bureau of Administration – Directorate ofOperations – Office of Real Property Management: A/OPR/RPM;

(11) Chief of mission: COM; and

(12) Deputy chief of mission: DCM.

2 FAM 962 SOLICITATION AND ACCEPTANCEOF GIFTS

(CT:GEN-431; 11-07-2014)

a. The Under Secretary for Management (Under Secretary)is the delegated Department official responsible for the general direction andoverall supervision of the Department’s gift acceptance program. He orshe is responsible for the acceptance of all gifts to the Department of Statefor official purposes, unless a specific delegation to another official hasbeen made in these provisions or subsequently, in writing, from the UnderSecretary or from a person delegated authority to accept gifts under theseprovisions. Any person who has been delegated authority to accept gifts underthese provisions will consider the same criteria that the Under Secretaryconsiders consistent with 2 FAM962.1, and will perform basic vetting to ensure no major conflicts existwith the donor, and that acceptance of the gift from the donor will not causeembarrassment to the Department.

b. No Department employee may engage in solicitation orother fundraising activities for U.S. Government use, or for the use of anoutside organization without prior authorization, in writing, from the UnderSecretary for Management, except as specifically authorized in 2 FAM 962.3 through 2 FAM 962.17, or 3 FAM 4123.4.

2 FAM 962.1 Authority to Solicitand Accept Gift Funds

2 FAM 962.1-1 Due Diligence:Process for Vetting and Approving Donors

(CT:GEN-569; 03-25-2021)

a. To aid in evaluating any requests for authority tosolicit and accept gift funds, the requesting office must obtain from theSecretary’s Office of Global Partnerships (S/GP) a due-diligenceinformational memorandum for all U.S.-based, nonfederal entities to besolicited:

(1) The office should then review the due diligencememorandum carefully and make a determined judgment that soliciting andaccepting gifts from each entity would not cause embarrassment or harm to theDepartment or its reputation; and

(2) The office should also make a reasoned judgmentthat soliciting the entity or entities would not give the appearance of aconflict of interest that would cause a reasonable person to believe that anyDepartment official involved lost objectivity in the performance of his or herofficial duties.

b. Regarding vetting of foreign entities andindividuals for the due diligence informational memorandum referenced inparagraph a of this section, if the foreign individual or entity has asignificant U.S. presence, S/GP will perform the full vet, relying uponappropriate resources from post. Likewise, if the proposed gift is based inthe United States, S/GP will perform the full vet relying on appropriateresources from post. If, however, the foreign individual or entity does nothave a significant U.S. presence and the gift is based overseas, S/GP will relyon post for a significant portion of the vetting process. S/GP will review theresult of post’s searches for consistency and will determine ifadditional searches are necessary.

c. For solicitations or donations from nongovernmentalorganizations and for-profit entities valued at $5000 or less or fromindividuals valued at $3000 or less, a condensed vet will be completed by S/GPincluding, at a minimum, a search of Lexis/Nexis to include criminal filings,Google, A/QM, and Lobbyist Database checks. If the condensed vet reveals anyred flags, a standard full vet will be performed.

d. The requesting official must prepare an actionmemorandum to the Under Secretary, and obtain clearances from L/M, L/EFD, andthe legal office with principal responsibility for advising on the requestingoffice's programs, CGFS/EDCS, as well as other relevant offices. Thismemorandum must include the following:

(1) A detailed description of the proposed giftsolicitation and its goals;

(2) A copy of the vetting report performed by S/GP;

(3) A list of the potential entities to be approachedand any relevant information from the due diligence information memorandum,including any potential conflicts or information that could cause harm orembarrassment to the Department;

(4) An explanation of any funding to be used,including appropriated funds or alternative sources of funding and an explanationof funding or personnel to be provided by the nonfederal entity;

(5) Whether the money is being raised for unusual orexceptional expenses (such as capital improvements), or ordinary operatingexpenses of the Department;

(6) The proposed project’s importance to theU.S. Government, including whether the donor’s gift enables theDepartment to further achieve diplomatic goals and objectives;

(7) Background concerning how the entity or entitieswas/were chosen;

(8) The amount of money to be raised, the method ofraising gifts, including the proposed text(s) for any communications to be usedin the solicitation, and how the solicitations will be managed;

(9) The degree to which the Department will bedirectly involved in the fundraising;

(10) Confirmation that employees involved in thesolicitation do not have an outside personal or financial interest in thepotential donor;

(11) A description of any business the entity has withthe Department, including value;

(12) A list and description, provided by the donor, ofthe donor’s subsidiaries, business affiliations and the businessaffiliations of the donor’s immediate family members. Corporate donorsshould provide a list and description of their subsidiaries. All donors shouldprovide a description of nonroutine matters affecting the donor, thedonor’s immediate family members, or the donor’s businessaffiliates (or subsidiaries of corporate donors) that have required, or areexpected to require, the Department’s or post’s attention; and

(13) Any information necessary to allow the UnderSecretary to determine whether any of the considerations set forth in 2 FAM 962.1, paragraphs e throughh, exist.

e. The Under Secretary will generally not approve arequest to solicit an entity that:

(1) Seeks to obtain any business, benefit orassistance from the soliciting official or other officials in the sameorganizational unit;

(2) Conducts operations or activities that areregulated by the requesting entity;

(3) Has interests that may be substantially affectedby the performance or nonperformance of the requesting official’s duties;

(4) Appears to be entering into the gift with theexpectation of obtaining advantage or preference in dealing with the requestingofficial, office or the Department; or

(5) Has major nonroutine business with the requestingbureau or post.

f. The Under Secretary will also not approve a requestfor authority to solicit that would cause a reasonable person to question theimpartiality of any Department official.

g. In addition, the Under Secretary will generally notapprove solicitation or fundraising proposals that involve a significant use ofappropriated funds in order to conduct the solicitation.

h. Approval of solicitation or other fundraisingproposals requires balancing the U.S. Governmental policy interests in favor offundraising against the potential risks of Department involvement in raisingmoney from the private sector. This process inherently requires makingjudgment calls about issues, such as the importance of the project and therisks that the Department will be subjected to criticism for its activities.

2 FAM 962.2 Gift Solicitationand/or Acceptance Procedure Other Than Funds

(CT:GEN-431; 11-07-2014)

Sections 2 FAM962.3 through 962.17 detail the acceptance and/or solicitation proceduresfor various types of gifts to the Department.

2 FAM 962.3 Gifts from ForeignGovernments and International Organizations

(CT:GEN-452; 04-28-2016)

a. As a general matter, the Department's acceptance ofofficial gifts from foreign governments or international organizations must bereported to the Office of the Chief of Protocol Gift Unit via the Chief ofProtocol's gift registration form.

b. An employee offered a personal gift that he or shecannot accept under the Foreign Gifts and Decorations Act (5 U.S.C. 7342, asamended) because the gift exceeds the minimal value (see 11FAM 600), may accept the gift on behalf of the Department when it appearsthat refusing the gift would likely cause offense or embarrassment or otherwiseadversely affect the foreign relations of the United States. The managementofficer at post, in consultation with the Office of the Chief of Protocol,determines whether returning an overvalued gift would likely causeembarrassment or offense, or would adversely affect the foreign relations ofthe United States.

c. The process for handling such a gift is as follows:

(1) Within 60 days after accepting a tangible gift ofmore than minimal value, an employee must:

(a) Deposit the gift for disposal or official use withpost or the regional bureau, if the gift was accepted in the United States;

(b) Subject to the approval of Protocol, post willeither dispose of the gift by forwarding to the Office of the Chief of Protocolwho will transfer the item to GSA in accordance with applicable propertydisposal regulations or, in consultation with the Office of the Chief ofProtocol, deposit the gift with the relevant property manager for official use;

(c) Within 30 days after terminating the official use ofa gift accepted under 2 FAM 962.3(b),the management officer is to forward the gift to the Office of the Chief ofProtocol who will transfer the item to GSA in accordance with applicableproperty disposal regulations; and

(d) No gift or decoration that has been deposited fordisposal may be sold without the approval of the Secretary of State, upon adetermination that the sale will not adversely affect the foreign relations ofthe United States; and

(2) Under certain circ*mstances, personal gifts oftravel may be governed by Section 108A of the Fulbright-Hays Act, as amended(22 U.S.C. 2458a).

2 FAM 962.4 Gifts of Real Property

2 FAM 962.4-1 Acceptance: Giftsof Real Property

(CT:GEN-569; 03-25-2021)

Acceptance of gifts of real property must be approved on acase-by-case basis by the Under Secretary for Management, following clearancefrom the Bureau of Overseas Buildings Operations (OBO), CGFS/EDCS, L/M, L/EFD,and the appropriate regional bureau(s).

2 FAM 962.4-2 Approval Process

(CT:GEN-431; 11-07-2014)

a. The chief of mission (COM) or other Departmentofficial must forward all offers of gifts involving real property at anoverseas post to OBO, along with the post's recommendation regardingacceptance. The donor(s) must submit a letter fully describing the gift andall associated structures/land and appurtenances, and further specifying thatthe gift is made pursuant to the provisions of 22 U.S.C. 300 and 22 U.S.C.2697.

b. The Director of OBO seeks approval by ActionMemorandum to the Under Secretary for Management to accept or decline thegift. OBO recommends whether to accept or decline all real property gifts.These recommendations will take into account any appearance of a conflict ofinterest, the desirability of the gift in terms of appropriateness, need,usefulness to the U.S. Government, and associated life-cycle maintenance costs.

c. OBO notifies the post or relevant Departmentofficial of the Under Secretary's decision. Upon approval, the COM assigned tothe post or the relevant Department official issues a formal letter ofacceptance on behalf of the U.S. Government. OBO will supply a draft text.

2 FAM 962.4-3 Gift AcceptanceProcessing

(CT:GEN-553; 09-26-2019)

a. After an offer of gift of real property has beenapproved, OBO’s Directorate of Planning and Real Estate (OBO/PRE) makesrecommendations to the Director of OBO regarding disposition of the gift (use,sale, rental, renovation, etc.).

b. OBO/PRE notifies the Office of Financial Managementin the Directorate of Resource Management (OBO/RM/FM) of all accepted realproperty gifts. OBO/RM/FM, in turn, ensures all pertinent data concerninggifts involving real property are reflected in the OBO annual budget estimatesthat will be reported to Congress, along with the budget estimates of the Departmentof State.

c. OBO/PRE prepares and coordinates all necessarycorrespondence between the Department and donors. This includes, but is notlimited to:

(1) Sending letters to all donors who have formallyoffered real property gifts; acknowledging receipt of their offers; andproviding further instructions pertaining to the acceptance of their offers;and

(2) Preparing the draft of a final letter of giftacceptance for signature by the COM.

d. OBO/PRE will advise and assist the post in the:

(1) Assignment of a building inventory number;

(2) Entry into Real Property Application (RPA) of theownership data;

(3) Registration via a local attorney of the title inthe name of the U.S. Government; and

(4) Transfer to OBO/PRE/OSP/KM of the final titledocuments for record keeping.

2 FAM 962.5 Acceptance: Gifts ofArtwork

(CT:GEN-569; 03-25-2021)

a. Both the Under Secretary for Management and theDirector of OBO have been delegated authority by the Secretary, Department ofState Delegation of Authority No. 114 (Jan. 18, 1967), to accept gifts ofproperty as authorized by Section 9 of the Foreign Service Buildings Act, 22U.S.C. 300. This includes artworks and transportation of gifts. The UnderSecretary is only involved in the acceptance of major gifts exceeding$250,000. The Director of OBO will submit the recommendation of these gifts tothe Under Secretary for final Department of State approval.

b. The Director of OBO and the Director of its Art inEmbassies staff (AIE) are authorized to accept or reject on behalf of theDepartment proposed donations of artwork valued at $250,000 or less per itemfor display in U.S. embassies, consulates, and chief-of-mission (COM)residences and financial donations to cover the cost of shipping, installation,and maintenance of artwork.

c. The Director of AIE and the AIE CuratorialCommittee determine which gifts are to be recommended for acceptance by theDirector of OBO. The Office of Art in Embassies shall prepare and manage thedrafting and routing of all relevant recommendation, approval, and notificationdocuments, which formally records acceptance or rejection.

d. In deciding whether to accept any particular gift,the OBO Director and Director of AIE will carefully follow the guidelines foracceptance of gifts set forth in 2FAM 962.1 and 2 FAM 962.4.

e. The OBO Art Committee (OAC) chair will obtain avetting report from S/GP for each donor or conduct the vetting of each donorpursuant to S/GP guidance.

f. When OBO Director approval is required, the OACchair will send an action memo for approval/disapproval to the OBO Directoroutlining the findings of the vetting report and any relevant considerationsunder the guidelines set forth in 2FAM 962.1 and 2 FAM 962.4.Several gifts may be included in the same memo, if needed.

g. The OAC chair will obtain clearance from CGFS/EDCS.L/M and L/EFD are available for consultation as needed.

h. The Office of Art in Embassies may use thisauthority to accept works of art for its permanent inventory for use to lend toposts, embassies, consulates and COM residences.

i. If other authority to accept a gift of artworkexists, for instance, if a piece of artwork is accepted on behalf of theDepartment, under 3 FAM 4122 orunder the Foreign Gifts and Decorations Act, separate approval from the OBODirector is not required. However, approval from the OAC is required if theartwork is going to be displayed in a public area.

2 FAM 962.6 Embassy RefurbishmentProjects

2 FAM 962.6-1 Gifts for EmbassyRefurbishment

(CT:GEN-569; 03-25-2021

a. The Under Secretary for Management may accept giftsfor embassy refurbishment, in consultation with CGFS/EDCS, and OBO. The DepartmentGift Funds Coordinator in CGFS/EDCS keeps all official records and maintains anautomated database relating to such projects. Donations for such projectsshould be made directly to the Department. Foundations should generally notserve as an intermediary for gifts.

b. Ambassadors and other principal officers should beaware that, in cases involving personal donations to the Department for thepurpose of activities at post, including embassy refurbishment in their hostcountries, whether cash or in-kind, the Department is generally unable toprovide a statement to the donor confirming that it has provided no goods orservices in consideration for the contribution. As a result, the InternalRevenue Service (IRS) may treat such donations as unreimbursed businessexpenses rather than charitable gifts for tax purposes. For questionsregarding the tax treatment of donations for such purposes, employees shoulddirectly contact the IRS, Office of the Assistant Chief Counsel for Income Taxand Accounting, 1111 Constitution Avenue, NW, Washington, DC 20224.

2 FAM 962.6-2 Project Approvaland Gift Solicitation/Acceptance Process

(CT:GEN-569; 03-25-2021)

a. OBO must approve of the proposed project (e.g.,refurbishment of the representational rooms in the COM residence). Working inconsultation with the COM, OBO must determine the appropriate scope of thedesired project. To do so, OBO is responsible for:

(1) Surveying the property;

(2) Deciding to what extent the project proposal isconsistent with long-term plan for the property; and

(3) Developing cost estimates for the proposedproject.

b. If OBO approves a project proposed by post, it willsubmit a project approval memorandum to the appropriate regional bureauindicating the approved scope of work and the estimated cost.

c. Once the project is approved, the COM or otherDepartment official may propose a method of fund raising (e.g., personal giftor solicitation of friends and/or business acquaintances) and whether it wouldbe conducted personally or by private individuals on his or her behalf. TheCOM or other Department official submits a written proposal to the UnderSecretary for Management via the applicable regional bureau seeking authorityto raise funds for the OBO approved project. The Action Memo to the UnderSecretary should include:

(1) A description of the project, the OBO survey, andall project approval documentation;

(2) The estimated cost of the project;

(3) A list of proposed donors and the S/GP vettingreport of each potential donor;

(4) The solicitation letter, method of solicitation,and how much each donor will be asked to give; and

(5) What will happen if sufficient funds are notraised to cover the entire proposed project.

d. All solicitation proposals for OBO approved projectsshould adhere to the following:

(1) CGFS/EDCS should clear solicitation letter;

(2) All checks should be made payable directly to theDepartment of State and sent under cover of a donor letter to CGFS/EDCS; and

(3) The solicitation letter should set the conditionsrequested by the donor such as access to the property.

2 FAM 962.6-3 Domestic Gift FundProcessing Procedures

(CT:GEN-569; 03-25-2021)

After M approves gift fund proposal:

(1) CGFS/EDCS receives donation (e.g., check, stockproceeds, materials, and/or services) or donation is received via wire transferand recorded by CGFS. CGFS/EDCS enters it into the Gift Fund Database;

(2) CGFS/EDCS staff follows up with the receivingbureau or donor, telephonically or in writing, to ensure all pertinentinformation is included for review;

(3) CGFS/EDCS staff determines whether thedonor/donation has been approved for solicitation or acceptance in the giftfund proposal Action Memo to the Under Secretary:

(a) If the donor/donation has been pre-approved in theAction Memo, CGFS/EDCS deposits donation in accordance with approvedprocedures, and the Bureau of Budget and Planning allots funds to appropriatebureau; and

(b) If the donor/donation has not yet been vetted byS/GP and approved in the Action Memo to the Under Secretary, the bureau forwhich the gift is being accepted must follow the process outlined in 2 FAM 962.1 in order to vet andclear the donor/donation. Once the approval of the donation has been confirmed,CGFS/EDCS deposits (and/or CGFS records the wire transfers) donation inaccordance with approved procedures, and the Bureau of Budget and Planningallots funds to appropriate bureau;

(4) CGFS/EDCS drafts an acknowledgment letter to thedonor on behalf of the Department.

2 FAM 962.7 Gifts forRepresentational Purposes Abroad

(CT:GEN-460; 08-18-2016)

a. If a gift is accepted by post, the managementofficer must report the gift in the Gift Fund Registry, with the exception ofthose gifts listed in 2 FAM 964,subparagraph a(3).

b. Management officers at post may accept gifts to beused for representational purposes in their countries of assignment only inaccordance with the following principles:

(1) As a general rule, a gift may not be accepted forrepresentational purposes abroad, unless the gift:

(a) Is donated for a trade promotion or Fourth of Julyevent that meets the criteria set forth in 2 FAM 962.7, subparagraph b(3)(a),or 2 FAM 962.8, as appropriate;or

(b) Is donated by a U.S. cultural, scientific oreducational nonprofit group for an event that meets the criteria set forth in 2 FAM 962.7, subparagraph b(3)(b);or

(d) In the case of tickets of any value to cultural,entertainment or sporting events, if attendance by U.S. Government employeeshas been determined to further the interests of the United States and its missionabroad, following the procedures in 2FAM 962.7, paragraph c; or

(e) Is authorized in a specific case by the UnderSecretary for Management;

(2) For the purpose of 2 FAM 962.7, subparagraph b(1)(c),“one donor” means:

(a) A person and his or her immediate family;

(b) A corporation, members of its board of directors,and its majority shareholders; or

(3) Trade promotion events include:

(a) Events held abroad to introduce a new-to-market U.S.firm or product line, to publicize a trade mission, to open an industryexhibition or otherwise to promote U.S. exports, assist U.S. exports, or assistU.S. businesses abroad; and

(b) Events held abroad on behalf of U.S.-based cultural,educational, or scientific organizations or associations, whether or not suchgroups are formally incorporated. Some examples are functions to introducevisiting scholars or artists, receptions to open a cultural event (e.g., dancefestival, photography exhibit), and events held for the purpose of promoting aneducational conference.

c. An official authorized to accept gifts may allocatedonated funds, goods, and services to defray the costs of a trade promotionevent or nonprofit event described in 2FAM 962.7, subparagraphs b(3)(a) and b(3)(b), if:

(1) The event clearly advances U.S. interests;

(2) The post is willing to perform similar servicesfor competing U.S. groups who ask and are similarly qualified;

(3) The official authorized to accept gifts concludesthat an objective person would not have reasonable grounds to believe that thedonor has obtained an unfair advantage or improper influence over post byfunding this representational activity, or that personal, financial, partisanpolitical, or other such considerations were involved in the provision of suchrepresentational event; and

(4) The event complies with all regulations that applyto representational activities paid for with appropriated funds (e.g.Standardized Regulations, Chapter 300 on representational activities abroad).

d. With respect to the acceptance of tickets for and/orattendance at cultural, entertainment or sporting events servingrepresentational purposes abroad, regardless of the section being offered thetickets, prior COM or deputy COM (DCM) approval must be obtained before ticketsare accepted. Upon such approval, gifts of tickets on behalf of the Departmentmay be accepted, subject to the following conditions:

(1) The tickets are for an event co-sponsored by post;or

(2) A written determination has been made by the COM,DCM or other designated official that:

(a) Explains how and why attendance at the event byDepartment employees is necessary to further the Department’srepresentational interests; and

(b) Confirms that the Department’s interests inattendance outweigh any concerns that the gift of attendance may appear toimproperly influence Department employees in the performance of official duties(relevant factors that should be considered in making this determinationinclude the importance of the event, the nature and sensitivity of any pendingmatter affecting the interests of the donor, the significance of theemployee’s role in that matter, the purpose of the event, the identity ofother attendees and the market value of the tickets);

(3) For COM attendance at such events, the ticketvalue will determine who should make the written determination:

(a) For the COM to accept tickets with a per ticketvalue exceeding $75, the relevant regional executive director or deputydirector should make this written determination;

(b) For the COM to accept tickets with a per ticketvalue of $75 or less, the management officer at post should make the writtendetermination; and

2 FAM 962.8 Gifts for July FourthEvents Abroad

(CT:GEN-569; 03-25-2021)

a. Management officers at post may accept cash andin-kind donations for official embassy-sponsored July Fourth events in theirhost countries and must report these donations in the Gift Fund Registry. Inaddition, ambassadors and other principal officers at post may solicit, orauthorize the solicitation of, such donations without prior authorization bythe Under Secretary for Management, consistent with the following guidelines:

(1) Donations may be solicited and accepted from aU.S. citizen, a U.S. organization or U.S. company (including foreignsubsidiaries, franchisees, or distributors), or a foreign company that meetsthe criteria in 2 FAM 962.8,subparagraph a(2) only when the individual, organization, or company is neitherseeking substantial assistance from post (e.g., nonroutine consular assistanceor nonroutine commercial advocacy or assistance) nor would be substantiallyaffected by a pending or reasonably anticipated post official action;

(2) Post may solicit contributions only from thefollowing two types of foreign companies:

(a) Host-country companies that have:

(i) Significant investment in the United States;

(ii) Employ a significant number of employees in theUnited States; and

(iii) Have an established long-term commitment tomaintaining an economic presence in the United States; and

(b) Foreign companies that were formerly U.S.-owned andhave strong U.S. brand recognition;

(3) Posts should not seek to raise more funds thanrequired for this year’s official Fourth of July event;

(4) In accordance with U.S. tobacco policy and toavoid an appearance of endorsem*nt, no tobacco companies may be solicited;

(5) When post solicits donations, no donor may beimpermissibly preferred over another, and no appearance of unfair advantage orimproper influence may result from acceptance of a particular donation. Postmust show no preference among U.S. donors in receiving donations by, forexample, accepting donations from one U.S. firm and refusing donations from acompeting firm, unless such a distinction is justified based on the criterialisted in 2 FAM 962.8,subparagraphs a(1) and a(6);

(6) The official authorized to solicit and acceptgifts must determine that a reasonable person would not conclude that the donorhas obtained an unfair advantage or an improper influence over the ambassadoror the post through its donation, or that personal, financial, partisan political,or other such considerations were involved in the provision of such adonation. No employee may imply that a donor will receive any advantage orpreference from the U.S. Government as a result of the donation, including apromise to intervene with the host government, a commitment to invite the donorto official functions, or an assurance that the donor will have preferentialaccess to official facilities. Likewise, no employee may suggest that a donorwill be disadvantaged as a result of not making a donation;

(7) U.S Government officials who have an ownershipinterest in or a prior business relationship with a public or closely heldcompany should not solicit from that company. In such situations, it may beappropriate for a different U.S. Government official without such arelationship to solicit that company. Post may consult L/EFD as needed;

(8) Post should seek to accept contributions from abroad array of eligible organizations and companies. No donor may co-host theofficial Fourth of July event with the U.S. Government or be designated as asole sponsor of the event. Given the diversity of the Department’smission overseas, a representational event celebrating the national day of theUnited States should, more than any other day, celebrate the diversity of theU.S. Government’s interest and goals. Co-hosting our national day withan outside group might be construed as singling out one area of our particularmission, running a significant risk of criticism or even enmity from other groupsor persons whose interests also support the Department’s mission;

(9) Acceptance of a donation from one entity that issignificantly larger than contributions from other sources should also beavoided. In such a case, post should closely scrutinize the circ*mstances ofthe donation and determine whether all or only a portion of the contributionshould be accepted. Donations should not be accepted if they would create anappearance that a donor will be advantaged in U.S. Government actions if itgives or will be disadvantaged if it does not;

(10) All contributions received for the Fourth of July,whether cash or in-kind, should be given as unconditional gifts and reported inthe Gift Fund Registry. Donors may express a preference that donations be usedfor the Fourth of July celebration:

(a) Generally, post should not sign donor agreements.However, if a donor requests that post sign a donor agreement in order toreceive a donation, post should review the agreement to ensure that it does notrequire post to take actions inconsistent with the requirements of 2 FAM 962.8 and also does notcontain problematic clauses and restrictions listed in 2 FAM Exhibit 960(B). After suchreview, post should send the donor agreement to L/M and CGFS/EDCS for clearancebefore signing;

(b) If a donor agreement can be signed, signature onbehalf of the Department may be made by the management officer for whomentering into such agreements is within the scope of his or her duties. (Thesedocuments are generally intended by the donor to be binding contracts.However, they are not acquisition contracts and therefore are not subject tothe Federal Acquisition Regulation. Because these are not acquisitioncontracts, they do not need to be signed by a warranted contracting officer.);

(11) Written solicitation for cash or in-kind giftsshould avoid making any promises that could result in an appearance ofpreference or unfair advantage, or that would be inconsistent with otherguidance in this section. Written solicitations should not indicate a specificdollar amount that an individual donor is expected to make but may mention thegeneral cost of the event. Donors should not receive special recognition keyedto the amount of the contribution;

(12) Post officials should seek to solicit local orregional representatives of U.S. companies, rather than corporate headquartersin the United States. Under exceptional circ*mstances, post may request in awritten memorandum through the regional bureau addressed to the Under Secretaryfor Management, with clearances from the regional bureau, CGFS/EDCS and L/EFD,an exception to permit solicitation of a U.S. firm’s U.S. headquarters.Requests should include the basis for permitting the exception, such as theoptions for in-country solicitation being very limited;

(13) Post officials should not solicit airline ticketsor other travel-related services without the approval of the Under Secretaryfor Management;

(14) Fourth of July donations may be used for:

(a) Reasonable honoraria for local entertainment;

(b) Lodging, meals, and incidental expenses for U.S.military bands or other U.S. entertainers who are in country at the time of theofficial Fourth of July event; and

(c) Under exceptional circ*mstances, post may seek theUnder Secretary’s approval to use donated funds for entertainers’travel expenses. Requests should indicate compelling reasons why approvalshould be granted (e.g., favorable cost comparison, appropriate music forFourth of July celebration);

(15) Post may have themed official events that showcasea particular U.S. regional area or aspect of U.S. culture. In such situations,post may solicit for food and other modest theme-related items, as well as forthe cost of transporting such items to post. For example, for a theme highlightingNew England, post could solicit for New England clam chowder, includingnecessary costs to transport such items. However, close scrutiny should begiven to whether identifying one U.S. location is consistent with the purposesof an official Fourth of July event. For example, identifying the home area ofthe chief of mission may create the appearance that the event is for reasonsother than celebration of the national day of the United States. The goodjudgment of post leadership should be exercised. In these cases, it may beappropriate to solicit regional U.S. companies for such in-kind gifts;

(16) Post should consider the scale of the event giveneconomic circ*mstances. Any significant expansion of the event must be clearedin advance with CGFS/EDCS and L/M;

(17) Control over donor recognition must be retained bypost. Donors should not receive special recognition keyed to the amount of thecontribution. Donor recognition should be limited to a tasteful listing ofdonor names, perhaps displayed on a modest-sized placard near the entrance ofthe reception areas and/or in the program. If the chief of mission believesthat it can be tastefully done, he/she may authorize the display of brand namelogos or the like on serving tables, uniforms, or in similar places, so long asequal opportunity is given to all entities donating. Donors may not berecognized on invitations. Any promotional giveaways should be strictlylimited to items of nominal value (e.g., balloons, individual beverage containers).Other forms of promotional activity such as product showcases or donorpromotional displays or sale of such items are generally not appropriate;

(18) Cash donations must be reported to the Department(via the Gift Fund Registry). The record must include the date received, thedonor information and any relevant affiliation, the amount of the donation, theauthority under which the gift was accepted, and its disposition. If the giftis not recorded in the Gift Fund Registry, the bureau's executive office willnot allot funds;

(19) In-kind gifts, such as cash donations, forofficial Fourth of July events are accepted as gifts to the Department and,therefore, must be reported to the Department (via the Gift Fund Registry) andcontrolled as U.S. Government property. Post should check with L/M todetermine if a particular donation is authorized. A complete list of donorsand the cash equivalent (fair-market value at the time and place of donation)of the in-kind gifts must be entered into the Gift Fund Registry. The date ofdonation, receiving bureau, fund program, and donor information must also beappropriately logged in the Gift Fund Registry; and

(20) Donations of services may warrant the use of agratuitous services agreement. Posts should coordinate with L/EMP under thesecirc*mstances.

b. A solicitation under this section must also followthe same tenets set forth in 2 FAM962.1 as if the ambassador or other principal officer were the UnderSecretary for Management (see 2 FAM962).

c. The July Fourth event must comply with allregulations and conditions that apply to representational activities paid forwith appropriated funds, including those conditions governing attendance (e.g.,Standardized Regulations, Chapter 300 on representational activities abroad).

d. Nonofficial Fourth of July celebrations include anyevent other than the official Fourth of July representational event, no matterwhere the event takes place. Examples are those events hosted primarily forU.S. Government employees only or events hosted by individuals or sponsored byemployee associations:

(1) 2 FAM 960does not provide authority for employees or their family members to solicit oraccept gifts on behalf of the U.S. Government for nonofficial Fourth of Julycelebrations. Employees and family members should solicit for nonofficialFourth of July events either in their personal capacity or on behalf of anemployee association or other outside organization only if the solicitationfully conforms to the government-wide Standards of Ethical Conduct (including 5CFR 2635.202 on gifts and 5 CFR 2635.808 on fundraising) and does not conflictwith official solicitation efforts;

(2) Employee associations may accept unsolicited giftsfor nonofficial Fourth of July events if it is made clear to the donor that theevent is not the official Fourth of July representational event. Acceptance ofthe gift and accompanying accounting practice must be recorded separately fromthe official event. Acceptance criteria should be consistent with theguidelines of 2 FAM 962;

(3) Nonofficial events may be held on Embassy groundsas long as it is clear that the event is not the official Fourth of Julyrepresentation event;

(4) A fee may be charged for the nonofficial event tocover costs, but in no case should the proceeds be deposited as official U.S.Government funds;

(5) Vendors may sell products at nonofficial events;and

(6) Post should consult the annual Fourth of Julycable for reporting and accounting procedures, as well as any updated informationregarding the guidance contained in 2FAM 962.8.

2 FAM 962.9 Gifts for PublicDiplomacy Purposes Abroad, including Attendance at CertainCultural/Entertainment Events

(CT:GEN-452; 04-28-2016)

a. Public affairs officers (PAOs) and their subordinatesat post are authorized to solicit and accept gifts for public diplomacypurposes abroad (as defined in 2 FAM961.4(5)) subject to the following conditions:

(1) The PAO must follow the same tenets set forth in 2 FAM 962.1 as if the PAO were theUnder Secretary for Management (see 2FAM 962);

(2) Any solicitation should be targeted at a broadarray of individuals and entities, including nonfederal sources whereappropriate. No preference shall be shown among similarly situated individualsor entities in soliciting and accepting donations. No solicitation shallpromise any U.S. Government benefit in exchange for donations;

(3) When soliciting from U.S. companies, posts shouldsolicit local representatives of such companies in their country of assignment ratherthan the corporate headquarters;

(4) In those instances in which solicitation“campaigns” are contemplated for specific public diplomacy (PD)programs, such campaigns shall be conducted during a finite period of time andfor a specific targeted amount not to exceed a total of $150,000 per programrather than throughout the year for an indefinite period of time and anunspecified targeted amount (for campaigns in excess of this amount, UnderSecretary for Management approval is needed);

(5) COM or deputy COM (DCM) approval must be obtainedbefore a solicitation is undertaken or donations are accepted. Donations fromany one donor may not exceed $75,000 per program (for individual donations inexcess of this amount, Under Secretary for Management approval is needed);

(6) All applicable Department reporting and accountingrequirements must be followed according to guidelines indicated in 2 FAM 964 and 2 FAM 965; and

(7) If a post has questions about the appropriatenessof a draft solicitation letter, talking points to be used in telephone calls,or other issues, advice should be sought from its regional bureau.

b. When personally engaged in fundraising for PDprograms, COMs may, without the need to receive prior authorization from theUnder Secretary for Management, sign letters and make short remarks to a broadgroup of otherwise permissible companies or nationals to solicit them for a PDprogram for a specific targeted amount not to exceed a total of $150,000 perprogram. COMs may similarly thank donors for their contributions in anappropriate manner.

c. With respect to the solicitation and acceptance oftickets for and/or attendance at cultural, entertainment, or sporting eventsserving PD purposes abroad, prior COM or DCM approval must be obtained. Withsuch approval, PAOs and their subordinates at post are authorized to solicitand accept gifts of tickets on behalf of the Department, subject to thefollowing conditions:

(1) The tickets are for an event co-sponsored by post;or

(2) A written determination has been made by the PAOthat:

(a) Explains how and why attendance at the event byDepartment employees is necessary to further the Department’s PD programsor interests; and

(3) For COM attendance at such events, the ticketvalue will determine who should make the written determination:

(a) For the COM to accept tickets with a per ticketvalue exceeding $75, the relevant regional executive director or deputydirector should make this written determination in consultation with thebureau’s public diplomacy leadership;

(b) For the COM to accept tickets with a per ticketvalue of $75 or less, the management officer at post should make the writtendetermination in consultation with the public affairs officer; and

2 FAM 962.10 Gifts forEntertainment Events

(CT:GEN-460; 08-18-2016)

a. The solicitation or acceptance of gifts to theDepartment for entertainment events must be approved in advance. Inappropriate circ*mstances, tickets for entertainment events may be solicitedand/or accepted as a gift to the Department under the PD or therepresentational purposes provisions above (see 2 FAM 962.9 and 2 FAM 962.7, respectively). Inappropriate circ*mstances, tickets for entertainment events may also beaccepted through a post’s community liaison office (CLO) (see 2 FAM 962.11). In all othercases, an Action Memorandum to the Under Secretary for Management, outliningthe desired goal, process, and circ*mstances, consistent with the provisions in2 FAM 962 would be required. Suchgifts must be recorded in the Gift Fund Registry.

b. Please note that in narrow circ*mstances, tickets toan entertainment event may be accepted as a personal gift to the employee underthe provisions of 5 CFR 2635 and 11FAM 600. Such tickets may never be solicited. Please consult L/EFD forguidance. Such gifts are not to be entered into the Gift Fund Registry.

2 FAM 962.11 Gifts Accepted by theCLO for Health, Morale, and Welfare of Department Employees Abroad

(CT:GEN-452; 04-28-2016)

The community liaison office (CLO) is an officialcomponent of U.S. mission and is subject to the same rules and regulations thatapply to all Department employees, including ethics provisions prohibiting thepersonal acceptance of gifts from outside sources (See 11 FAM 610). The CLO’s abilityto accept gifts or fundraise in his or her official capacity for the health,morale and welfare of Department employees abroad is limited to the followingprovisions:

(1) CLOs may accept unsolicited gifts of tickets oradmission to entertainment events provided the management officer determines inwriting:

(a) The gift is necessary and appropriate to support thehealth, morale and welfare of Department employees and family members; and

(b) The donor of the gift does not currently have anonroutine matter or request for action at post, and otherwise does not appearto be offering the gifts to curry favor or preference with Department employeesor as a quid pro quo for recent official action;

(2) The management officer at post should establish afair and even-handed approach for the distribution of such gifts to Departmentemployees and family members, showing no special preference based onsuperiority or position; and

(3) The CLO may also organize appropriate,self-supported social events for the welfare and moral of Department employeesand may seek voluntary contributions from participating Department employees tocover the costs of these events.

2 FAM 962.12 Gifts of Travel

(CT:GEN-468; 03-15-2017)

a. Under certain circ*mstances as defined in thissection, the Department may accept unsolicited donations other than cash todefray the cost of travel for official purposes (gifts of travel), includingtravel, subsistence, and related expenses.

b. The management officer at post is authorized toapprove gifts of travel within the country of assignment and the executivedirector of the relevant bureau is authorized to approve gifts of traveloutside of a country of assignment and travel of all persons stationed inWashington, DC.

c. When a Department authorizing official approves agift of travel under this section, the traveling employee must be issuedofficial travel orders in advance of travel.

d. Acceptance of gifts of travel from a nonfederalsource:

(1) For travel offered in conjunction with a“meeting or similar function,” as defined by the Federal TravelRegulations at 41 CFR 304-2.1, the appropriate Department authorizing officialmust conclude that the donation is for travel that:

(a) Is to a conference, seminar, speaking engagement,symposium, training course, or similar event that takes place away from theemployee’s official station;

(b) Relates to the employee’s official duties;

(d) Is for the minimum time necessary to carry out U.S.Government business; and

(e) Is from a nonfederal source that is not disqualifiedon conflict of interest grounds. In appropriate cases, the authorizingofficial may qualify acceptance of the offered travel by limiting the type orcharacter of benefits that may be accepted;

(2) For travel offered for reasons other than a“meeting or similar function,” the authorizing official mustconclude that, in addition to the requirements set forth at paragraph d(1) ofthis section:

(a) A reasonable person would not believe that thetraveling official or the Department would lose objectivity as a result ofaccepting the travel donation; and

(b) The traveling official’s attendance at orparticipation in the event outweighs any concern that acceptance of thedonation may or may reasonably appear to improperly influence the official inthe performance of her duties;

(3) A nonfederal source is disqualified on conflict ofinterest grounds for the purpose of 2FAM 962.12, subparagraph d(1), if a Department authorizing officialdetermines that acceptance of the donation under the circ*mstances would causea reasonable person with knowledge of all the relevant facts to question theintegrity of Department programs or operations. The following factors shouldguide such a determination:

(a) The identity of the nonfederal source;

(b) The purpose of the travel;

(d) The nature and sensitivity of any matter pending atthe Department or post affecting the interests of the nonfederal source;

(e) The significance of the employee’s role in anysuch matter; and

(f) The monetary value and character of the travelbenefits offered by the nonfederal source.

e. The Department may accept a gift of travel for anemployee’s spouse. All limitations and requirements of this part applyto the acceptance of payment from a nonfederal source for travel expensesand/or agency reimbursem*nt of travel expenses for the spouse. The Departmentmay determine that the spouse’s presence at an event is in the interestof the agency if the spouse will:

(1) Support the mission of the Department orsubstantially assist the employee to carry out official duties;

(2) Attend a ceremony at which the employee willreceive an award or honorary degree; or

(3) Participate in substantive programs related to theagency’s programs or operations.

All such gifts of travel must be authorized byL/EFD, in addition to the appropriate Department authorizing official.

f. If the payment or ticket was paid in full directlyby the nonfederal source or reimbursed to the Department by the nonfederalsource, the provisions of the Fly America Act do not apply.

g. Accommodation other than coach class may beauthorized when payment is from a nonfederal source, provided that allrequirements of 41 CFR 301-10.123, 41 CFR 301-10.162, or 41 CFR 301-10.183 aremet.

h. In general, full-time executive branch presidentialappointees, including ambassadors, may not travel on aircraft or use overnightaccommodations owned, chartered, or maintained by a company primarily for itsuse if the company is regulated by or doing business with the Department.While exceptions to this rule do exist for certain types of travel, the WhiteHouse Counsel generally must authorize such exceptions. Individuals seekingsuch authorization must first contact L/EFD with answers to the followingquestions:

(1) Is the aircraft owned, chartered, or maintained bya company for its own use or has it been chartered or leased by the companyfrom a charter company for a specific occasion?

(2) Are other travel arrangements or accommodationspractically available?

(3) Does the offer of travel or accommodations resultfrom the business activities or employment of the presidentialappointee’s spouse and, if so, is it clear that such benefits have notbeen offered or enhanced by the appointee’s official position?

(4) Is the company regulated by, doing business with,or seeking to do business with a relevant post or bureau(s) of the Department,and, if so, what is the nature of that regulation or business?

(5) Could the presidential appointee affect theinterests of the company by the performance or nonperformance of his or herofficial duties and, if so, how?

(6) Does an official purpose exist for the travel and,if so, what is that official purpose?

(7) Does the travel constitute a priority use of thepresidential appointee’s time?

(8) Is the travel for the minimum time necessary tocarry out official purposes?

(9) What is the nature and approximate monetary valueof the travel benefits offered by the company?

2 FAM 962.13 Gifts of ClubMemberships

(CT:GEN-431; 11-07-2014)

As a general matter, the Department does not accept giftsof club membership. In some unusual cases, the Department may approve theacceptance of a gift of a free club membership as a gift to the Department.The Department will generally only do so when it appears that access to theclub would substantially advantage the official in the conduct of foreignaffairs to a degree that overcomes any appearance of improper advantage.Requests for approval to accept such memberships should be directed to therelevant Department executive office for approval by the Under Secretary forManagement.

2 FAM 962.14 Gifts to the ForeignService National Emergency Relief Fund

(CT:GEN-577; 02-02-2022)

CGFS/EDCS may accept monetary gifts to the Department forthe Foreign Service National Emergency Relief Fund, a Fund that was created torespond to crises and humanitarian requests on behalf of locally employed (LE)staff working for the U.S. Government. The Fund assists LE staff of all U.S.government agencies in a host country. Contributions should be made by check,credit card, or through payroll deductions. All contributions to the Fund aretax-deductible and 100 percent of all contributions are allocated for currentand future disbursem*nts. Checks should be made payable to the U.S. Departmentof State and earmarked for the Foreign Service National Emergency Relief Fund.Correspondence should be sent to the following address: The FSN EmergencyRelief Fund, Gift Fund Coordinator, U.S. Department of State, 2201 C Street NW,CGFS/EDCS, Rm. 7427B, Washington, DC 20520. Secure on-line electronicdonations may be made via the U.S. Treasury’s website. Requests to make a one time or recurring payrolldeduction can be made through the Payroll Customer Support Portal. LE staff wishing to contribute shouldcontact their management office for currency exchange assistance. CGFS/EDCS hasauthorized reverse accommodation exchange for emergency fund contributions.For additional information, please visit the CGFS/EDCS website.

2 FAM 962.15 Fundraising for LocalCharities Abroad

(CT:GEN-431; 11-07-2014)

a. Chiefs of mission may authorize employees, andfamily members at post to solicit cash or in-kind donations on behalf of localcharities (e.g., by writing letters, making telephone calls) without priorauthorization by the Under Secretary for Management in cases where the purposefor fundraising is for local use, the activity is in the clear foreign policyinterest of the United States, and there is very little or no appearance of preference,or use of public office for private gain. Any fundraising activity must targetthe community at large, beyond the post. A local chapter of an internationalcharitable organization may be considered a local charity under this provisionif the purpose for the fundraising is for local use. Neither post employeesnor the Department should accept or receive such contributions directly. Thechief of mission and his or her spouse may participate personally in thesolicitation only with the concurrence of L/EFD and the deputy assistantsecretary of the relevant regional bureau. See also 3 FAM 4123.4.

b. When a chief of mission solicits or authorizes asolicitation pursuant to 2 FAM962.15, the chief of mission must consider the same tenets set forth in 2 FAM 962.1 as if the chief ofmission were the Under Secretary for Management (see 2 FAM 962).

2 FAM 962.16 Relationship toDonors

(CT:GEN-431; 11-07-2014)

a. No employee may make any commitment to an actual orprospective donor that implies that the donor will receive any advantage orpreference from the U.S. Government as a result of the donation, including apromise to intervene on behalf of the donor with the host government, acommitment to invite the donor to official functions, or an assurance that thedonor would have preferential access to official facilities. In the course ofhis or her official duties, no U.S. Government employee may afford any donorpreferential treatment as a result of a donation. However, a U.S. Governmentemployee, in the course of his or her official duties, should not place a donorat a disadvantage because of his or her donation. In this regard, anambassador remains free to invite any individual, including a donor, to stay athis or her official residence for reasons unrelated to the donation of thegift, including a friendship between the ambassador and that individual.

b. A donor may be given appropriate recognition (suchas by a plaque) once a donation has been properly accepted. Any expenseassociated with such recognition should be charged to gift funds allocated tothe project, if possible, or to another appropriate account.

2 FAM 962.17 Unconditionality ofGifts

(CT:GEN-452; 04-28-2016)

a. Under the guidance of the Under Secretary forManagement, officials authorized to accept gifts on behalf of the Departmentshall allocate gifts in a manner that furthers public purposes and fulfills theneeds of the Department.

b. The Department of State Basic Authorities Act,Section 25 authorizes the Department to accept conditional and unconditionalgifts with the approval of the Under Secretary for Management. For bothaccounting and allocation purposes, the Department strongly prefers that giftsto the Department be offered without conditions (NOTE:The terms “conditional” and “unconditional” are derivedfrom Section 25 and approximate the meaning of the accounting terms“restricted” and “unrestricted”):

(1) Conditional gifts: Aconditional gift is a gift offered to the Department on the condition that theDepartment agrees to use the gift in the manner specified by the donor. Whenit accepts a conditional gift, the Department is legally bound to honor thedonor’s terms. However, Section 25 of the Basic Authorities Act bars theDepartment from accepting any gift conditioned on an expenditure of funds thatwill not be met by the gift or income from the gift “unless suchexpenditure has been approved by Act of Congress.” An example of this isif an individual offers the Department $6,000 to be used only for the purchaseof brass doors. The brass doors cost $10,000. Under the statute, the gift maybe accepted only if Congress has appropriated to the Department at least $4,000that can be spent on refurbishment activities such as the purchase of brassdoors; and

(2) Unconditional gifts: Anunconditional gift may be used by the Department for any lawful purpose.However, in making unconditional gifts, donors may express nonbindingpreferences on how they wish their gifts to be used by the Department:

(a) One example of this is if an individual offers$5,000 to the Department and states his or her wish that it be used to helprefurbish Embassy Paris facilities. The Department may accept the donation asan unconditional gift and may state its intent to put it to the donor’spreferred use, if possible. By so doing, the Department undertakes no legalobligation to use the gift as the donor prefers; and

(b) Another example is if a company offers theDepartment a telephone switchboard system that will aid the Department inhosting an international conference. The Department may accept the donation asan unconditional gift and may state its intent to use the switchboard system atthe conference if possible. By so doing, the Department undertakes no legalobligation to use the gift as the donor prefers.

c. Because Department policy strongly favorsunconditional gifts, the donor should be asked to submit to the Department,either prior to or upon making the gift, a donor letter, (see 2 FAM Exhibit 960(A)). Such a letter, while allowing the donor toexpress a preference for the use of a gift that he and/or she has donated,makes clear that the gift is unconditional. If the donor declines to submitsuch a letter and states that the offer is conditioned on the Department’suse of the gift for the specified purpose, the gift may be accepted only by theUnder Secretary for Management after consideration of the limitation onconditional gifts in the Basic Authorities Act.

d. When a nonbinding preference has been expressed,officials authorized to accept gifts on behalf of the Department should, in thefirst instance, consider utilizing gifts for the purpose suggested by thedonor. A different use may be made, however, where a higher priority exists.Officials should inform the prospective donor prior to acceptance of thedonor’s gift if there is a reason to believe that the donor’sexpressed preference will not be met.

2 FAM 963 GIFT OFFICER RESPONSIBILITIES

(CT:GEN-460; 08-18-2016)

a. The management officer at post will serve as giftofficer for official gifts accepted at post. The management officer maydesignate an alternate with the concurrence of the bureau executive director.The designee may be no more than one rank below the designating officer.

b. Gift officers are responsible for maintaining giftcontrols, improving accountability, and providing a single point of contact forquestions.

c. Officers are responsible for:

(1) Approving Gift Fund Registry entries;

(2) Accepting gifts for the U.S. Government and handlingthem according to established law, regulations, and procedures;

(3) Providing simple advice to embassy employees andreferring questions to the Office of the Legal Adviser; and

(4) Promoting embassy efforts to ensure that embassyemployees observe gift rules and regulations.

2 FAM 964 Gifts Officer and REPORTINGREQUIREMENTS

(CT:GEN-569; 03-25-2021)

a. The gift officer must maintain a record in the GiftFund Registry of all official gifts and donations received, excluding thoselisted in 2 FAM 964, paragraph c.Gifts to be listed in the Gift Fund Registry include:

(1) Gifts accepted under 3 FAM 4122.1;

(2) Gifts of artwork accepted under an authority otherthan 2 FAM 962.5;

(3) Gifts for representational purposes abroad (2 FAM 962.7);

(4) Gifts for July Fourth events abroad (2 FAM 962.8);

(5) Gifts for public diplomacy purposes abroad,including attendance at certain cultural/entertainment events (2 FAM 962.9);

(6) Gifts for entertainment events (2 FAM 962.10);

(7) Gifts accepted by the CLOs for health, morale, andwelfare of Department employees abroad (2 FAM 962.11);

(8) Gifts of travel that do not fall under 2 FAM 962.12, subparagraph d(1)(i.e., gifts of travel that are not accepted under 31 U.S.C. 1353; see 2 FAM 962.12);

(9) Gifts of club memberships (2 FAM 962.13);

(10) Gifts to the Foreign Service National EmergencyRelief Fund (2 FAM 962.14); and

(11) Gifts accepted under any other authority,including gifts accepted following submission of an Action Memo to M under 2 FAM 962.1.

b. Gift officers must identify the gift, date received,the name of the donor and any relevant affiliation, the amount of the gift (ifcash) or the value (if in-kind), the authority under which the gift wasaccepted and its disposition in the Gift Fund Registry. If the gift is notrecorded in the Gift Fund Registry, the bureau's executive office will notallot funds. Domestically, donors must complete a Donor Letter (2 FAM Exhibit 960(A)) and submit it to the appropriate bureauexecutive director. Overseas, donors must complete a Donor Letter and submitit to the management officer at post.

c. The following gifts are reported elsewhere and donot need to be reported in the Gift Fund Registry:

(1) Gifts of travel that fall under 2 FAM 962.12, subparagraph d(1) (i.e.,gifts of travel accepted under 31 U.S.C. 1353). These are reported to L/EFD(see subparagraph d(2) of this section);

(2) Gifts from foreign governments and internationalorganizations (2 FAM 962.3),including gifts offered as personal gifts to employees that cannot be acceptedunder the Foreign Gifts and Decorations Act because they exceed minimal valueand are accepted on behalf of the Department. These are reported to the Officeof Protocol within 60 days of acceptance;

(3) Gifts of real property (2 FAM 962.4). These are reportedto OBO (see 2 FAM 962.4-3,paragraph b);

(4) Gifts of artwork accepted under 2 FAM 962.5. These are reported toOBO/AIE (see 2 FAM 962.5); and

(5) Gifts of embassy refurbishment (2 FAM 962.6-1). These are reportedto CGFS/EDCS (see 2 FAM 962.6-1,paragraph a).

d. Consistent with 31 U.S.C. 1353, for gifts of travelthat exceed $250 in value and involve participation in a conference, seminar,speaking engagement, symposium, training course, or similar event, each bureauand post must submit Form SF-326, Semiannual Report of Payments Accepted, froma Non-Federal Source, which is available on the Directives Management website,the Department’s official site for all forms. Reports should be sentbi-annually in consolidated format to L/EFD by no later than April 30 andOctober 31 of each year, for the respective periods October 1- March 31 andApril 1-September 30. The report should include the following information:

(1) The name and position of the traveling official;

(2) The name of the donor;

(3) The nature of the event to which the employee istraveling;

(4) The time and place of the travel;

(5) The amount and method of payment (including anitemization of the benefits funded by the donor);

(6) The nature of the expenses;

(7) The name of the accompanying spouse, ifapplicable; and

(8) Where payment has been made in-kind, the reportmust provide the amount paid by the nonfederal source or a reasonableapproximation of the market value of the benefit. In the case of benefits withno commercial value, posts should, in the case of private air transportation,report the cost of first class airfare or, if necessary, chartering an aircraftcommercially in similar circ*mstances, and, in the case of lodging, report themaximum applicable per diem rate for lodging.

2 FAM 965 ACCOUNTING

(CT:GEN-431; 11-07-2014)

a. Unless the Under Secretary for Management approvesotherwise, monetary gifts allocated for a specific purpose must be used inaccordance with the accounting procedures that apply to appropriated fundsallocated for the same purpose. Since gifts are “no year” funds,they may be obligated, de-obligated, and re-obligated without fiscal yearlimitation.

b. Posts receiving representational gifts of cashshould deposit such gifts in the form of either U.S. dollars or localcurrency. Posts must exercise proper internal controls over all transactions,provide a complete audit trail, and, otherwise, follow accounting proceduresgoverning appropriated funds. Refer to 4 FAM 383.1 (Available Receipts)for additional guidance.

2 FAM Exhibit 960(A)
Sample Donor Letters

(CT:GEN-439; 02-19-2015)

Form DS-4271

Form DS-4272

Form DS-4273

2 FAM Exhibit 960(B)
Donor Agreements Clauses/Restrictions

(CT:GEN-439; 02-19-2015)

The following is a nonexhaustive list of clauses orrestrictions that cannot be included in donor agreements:

(1) Clauses that set out the jurisdiction under whichthe agreement is to be governed, unless it is U.S. law;

(2) Clauses that ask the signer to confirm that he orshe is not an officer, agent, or representative of any government;

(3) Insurance clauses;

(4) Clauses that grant the donor the right todetermine how the donor is recognized at the event, or are otherwise at oddswith the restrictions on donor recognition in 2 FAM 962.8, subparagraph a(17);

(5) Any quid pro quo for invitations (e.g., “Inconsideration of our donation of $____, the Embassy will provide ___invitations to the Fourth of July event.”);

(6) Clauses that specify that the donation is to beused only for the Fourth of July event, or clauses that stipulate that thedonation may be refunded in whole or in part. All donations must beunconditional;

(7) Clauses that grant the donor the right to vetopost’s acceptance of donations from other donors;

(8) Clauses that grant the donor the right to refer toitself as a “sole sponsor” or “co-host”;

(9) Clauses that require the Department to maintain aseparate account for a donor’s donation, grant the donor access toaccounting records in regards to the donor’s donation, or require aseparate report be provided to the donor regarding use of its donation;

(10) Indemnification clauses;

(11) Confidentiality clauses (a clause binding theDepartment to keep the agreement confidential);

(12) Clauses that restrict what the Department may sayabout the donor;

(13) Clauses that agree to allow the donor to use itsdonation for promotional purposes;

(14) Clauses that agree to allow the donor to use theDepartment or embassy seal; and

(15) Clauses that allow the donor to speak at theevent.

UNCLASSIFIED (U)

2 FAM 960 SOLICITATION AND/OR ACCEPTANCE OF GIFTS BY THE DEPARTMENT OF STATE (2024)

References