Federal Manager's Daily Report

The Office of Government Ethics has issued guidance on an exception to conflict of interest rules it issued in March involving employees serving on the boards of nonprofit organizations as part of their official duties.

The rules state that employees may participate in particular matters affecting the financial interests of nonprofit organizations in which they serve, or seek to serve or have an arrangement to serve, in their official government capacity as officers, directors or trustees, notwithstanding the employees’ imputed financial interest.

The guidance notes that employees are generally prohibited from participating in an official capacity in any particular government matter in which, to their knowledge, they or certain other persons specified in the statute have a financial interest, if the particular matter would have a direct and predicable effect on that interest. However, it adds that exceptions are allowed where the potentially conflicting interest is "remote or inconsequential" and said that standard applies in the case of such service.

Commonly, agencies assign employees to serve on such boards after determining that the service would further the agency’s interest in some way.

The guidance, covering what type of outside entities are covered and other specifics of the exemption, is here: http://www.oge.gov/OGE-Advisories/Legal-Advisories/LA-13-05—18-U-S-C–§-208(b)(2)-Exemption-for-Official-Participation-in-Nonprofit-Organizations/