Inside Iowa State: Iowa State University

February 27, 2004

Maneuvering through gift restrictions
(second in a series)

by Karen Bolluyt
Using tax dollars appropriately and preventing activities that might unduly influence the judgment of ISU employees is part of Iowa State's obligation to taxpayers.

Chapter 68B of the Iowa Code, Iowa's government ethics law, spells out how to be good. One section of this law prohibits public employees from accepting or soliciting certain gifts from restricted donors.

Who are restricted donors?
Restricted donors include those who are doing business with ISU or who seek to do business with the university. They include people and companies directly affected by the performance of your official duties and those who are engaged in activities regulated by ISU or the Board of Regents, State of Iowa. For example, you should not accept gifts from a company hoping to sell products to Iowa State, a student who will receive a grade from you or an alum who wants a job for a relative.

What kinds of gifts are prohibited?
You may not accept any gift valued at more than $3 -- including discounts, services, loan forgiveness or payment of a debt. You may not accept any cash gift, period.

Suppose I receive a gift worth more than $3?
You can stay out of trouble by giving it to your department, the university or a charitable organization. You should get a receipt to show that you transferred the gift.

May I give a gift to a student or to people I supervise?
Gifts from a supervisor generally are legal. But Keith Bystrom, associate university council, noted that even legal gifts could cause personnel trouble for a supervisor, such as the appearance of favoritism.

Are there exceptions to these gift laws?
There are 16 exceptions. The most important to university employees include:

Informational materials related to an employee's job responsibilities. For example, publishers may provide a free textbook for a faculty member's consideration or a kitchen equipment manufacturer may provide a video on food safety.
Gifts donated on to a charity or the university within 30 days.
Gifts available to the general public, not just state employees, for example a tree to be planted on campus.
Expenses necessary for a speaking engagement.
Small gifts from a professional or non-profit organization based on membership or participation, not on employment.
Plaques and recognitions without resale value.
Gifts from relatives.
Inheritances.
Campaign contributions.

Which ISU departments regularly deal with the implications of the gift law?
Staff in the central purchasing department frequently encounter situations in which the gift law applies. Facilities planning and management employees and university administrators face gift law issues to a lesser extent.

Last in this series: purchases from employees and their families
Editor's note: ISU associate counsel Keith Bystrom helped with this series.