1. The “Skinny” on Gifts, Meals, and Conferences University of Illinois Ethics and Compliance Office Email: ethicsofficer@uillinois.edu Ethics Line: 866.758.2146 Donna McNeely

2. Gifts Defined What is a gift? o Any gratuity, discount, entertainment, hospitality, loan, forbearance, or other tangible or intangible item having monetary value including, but not limited to, cash, food and drink, and honoraria for speaking engagements o related to or attributable to government employment or the official position of an employee, member, or officer. 2

3. Prohibited Sources When a gift is offered to you as a University employee, by someone who does or seeks to do business with the University (prohibited source) you cannot accept the gift without taking further action. Any University vendor is considered a prohibited source, in addition to any person or entity attempting to influence your decision in your official University capacity. 3

4. Gift Acceptance When offered a gift from a prohibited source, employees must do one of the following to comply with the law: o Return the gift to the giver o Keep the gift but make a 501(c)3 charitable contribution equal to the market value of the gift o Donate the gift itself to a 501(c)3 charitable organization of your choice Gifts made to the unit (University) and not directly to an employee are not restricted under the law. 4

5. So..... If the item received falls within the definition of a gift and is from a prohibited source, you may only accept the gift if an exception can be applied and/or approval is granted. o NOTE: Students are not considered prohibited sources. But, you should never accept a gift from a student if you could still impact their grades, enrollment in a course, graduation, etc. If it smells like an attempt to influence, whether valid or not, back away from the gift. 5

6. Gift Exceptions The law contains 12 exceptions, though only 8 are still applicable with the signing of Executive Order 15-09 in January of 2015. o You can no longer directly accept gifts under $100 cumulative value per calendar year from a single prohibited source. o You can no longer partake in a meal provided by a prohibited source, unless it is part of a conference or has a legitimate business purpose, such as a speaker or presentation during the meal AND the meal is of de minimis value. 6

7. Educational Materials and Missions (EMM) Exception When you need exception approval by the University Ethics Officer: o When a prohibited source is offering to pay some or all expenses for you to attend a sponsored event (conference, speaking engagement, forum) o Approval must be obtained in advance of the event o EMM Exception - https://www.ethics.uillinois.edu/forms o Must have a close connection to your University employment o Must benefit the University, as opposed to you individually 7

8. Educational Materials and Missions (EMM) When you do not need approval o Not a prohibited source (entire University System in the current and past two years has not done business with the vendor, and you are not aware of any immediate opportunity for/interest in future business). Email ethicsofficer@uillinois.edu to ask if source is prohibited ethicsofficer@uillinois.edu o When the conference fee ONLY is waived/provided by the conference sponsor 8

9. Honorariums – Can I Accept? Honorariums for speaking engagements or other services - When can I accept? o Are you there as a UIS employee or an expert in your field? o Would you be at work if you weren’t speaking? o Did you use a vacation day? Honorariums when on work time and when closely connected to your University employment are considered gifts and are not acceptable if from a prohibited source. o This is viewed as double compensation 9

10. Honorariums - Consulting Honorariums presented to you as a consultant for services outside of work hours, not associated with your University employment, or on a vacation day may be accepted. 10

11. In Real Life – Scenario 1 As a representative of the University of Illinois, you have been asked to present at a conference being hosted by an educational organization. The organization has offered you a $150 honorarium in exchange for your time. Can you accept this "gift"? 11

12. In Real Life – Scenario 1 If you are attending the event as a representative of the University, or if the University has paid for any aspect related to the trip (e.g., travel, lodging, etc.), then you cannot accept the gift. You can attend and speak at the conference, but are not allowed to accept the $150 gift. However, if you are presenting based on your expertise in the field, are not being reimbursed by the University of Illinois or attending because of your status at the University, and are off hours or using compensatory time, you may accept the honorarium. 12

13. In Real Life – Scenario 2 You recently attended a "brown bag" lunch within your department that was hosted by a University vendor. At the beginning of the meeting, you placed your business card in a drawing for a prize. You won a DVD player valued at $130. What can you do to comply with the Gift Ban section of the Ethics Act?Gift Ban section of the Ethics Act 13

14. In Real Life – Scenario 2 You have 3 options: o 1) you can donate the gift to a not-for-profit 501(c)3 organization (including, but not be limited to, the University of Illinois Alumni Association and Foundation), o 2) you can donate an amount equal to the value of the prize to a 501(c)3 organization, or o 3) you can return the gift to the vendor, explaining you are not permitted to accept it due to the law. 14

15. Real Life – Scenario 3 You are involved in the selection of a vendor to supply the University’s enrollment management system. The vendor RFPs have been submitted and one of the finalists has invited you and other members of the group involved in the selection to go on a site visit. The vendor candidate would like to pay for all travel and lodging fees associated with the trip to a university that recently implemented the system, which is located in New Jersey. Can you and your team accept this invitation with related expenses being covered by the vendor candidate? 15

16. Real Life – Scenario 3 Yes. There is an exception to the Gift Ban section of the Ethics Act, known as the Educational Materials and Missions exception, which allows for travel expenses related to state/University business to be covered. As such, you and your team may make the trip and have your related travel expenses covered by the prospective vendor. However, Ethics Officer approval must be granted in advance of the trip. Please note: the travel arrangements and accommodations should be "typical" University travel accommodations. Flying first class and staying at a resort would not be acceptable.Gift Ban section of the Ethics Act, 16

17. Real Life – Scenario 4 You and several members from your department are at a conference where a vendor the University does business with is also in attendance. The vendor takes your group to dinner at a steak house where you each have a nice meal, including appetizers, dessert, and alcoholic beverages. The vendor wants to pick up the tab. What do you do? 17

18. Real Life – Scenario 4 A 2015 Executive Order removed the $75/day food exception for meals paid by a vendor. The meal can only be accepted if: o 1) It is de minimis in value and o 2) There is a clear business purpose for the meal (guest speaker, product demo, etc.) In this situation, you should pay for your own meal and seek only per diem for the evening meal. 18

19. Real Life – Scenario 5 A current or prospective vendor invites you, a University employee, to a professional baseball game in the company’s box seats. There will be food and refreshments provided in the box. Is this allowable? 19

20. Real Life – Scenario 5 No. Since the under $100 exception no longer exists as a result of a 2015 Executive Order, you can no longer accept the vendor’s invitation which includes free tickets. If you really want to attend this event, you can 1) pay your own way to the game, or 2) you can make a charitable contribution equal to the value of the ticket and all food and drink. University employees should always keep in mind the role public perception plays in a situation. And, don’t even try to explain that this was a business meeting unless it’s absolutely clear. Likely you can not adequately support this. 20

21. People to Know Ethics and Compliance Staff Donna McNeely, Executive Director of Ethics and Compliance Traci Rolf, Associate Director of University Ethics Leigh Volpert, Administrative Coordinator 206-6202 21