Info You Can Use: Federal Employees As Board Members

Well this one falls under the heading of, “I did not know that.” The Non Profit Quarterly reports that the Office of Government Ethics has proposed changing a rule that prohibited federal employees from serving as officers on a board without getting special permission.

I had no idea that federal employees faced that sort of restriction. I guess we either never approached a federal employees to be on the boards of the organizations at which I worked.

Actually, according to a link on the OGE’s website, until 1996 “a number of agencies had a practice of assigning employees to participate on the boards of directors of certain outside nonprofit organizations, where such service was deemed to further the statutory mission and/or personnel development interests of the agency.”

In 1996, the Department of Justice issued an opinion that a section of the US Code prohibited this type of activity. The restriction was based on concerns about board officers having fiduciary responsibilities that might conflict with the loyalty owed the United States.

But the Office of Government Ethics feels times are a changin’

“In an era when public-private partnerships are promoted as a positive way for government to achieve its objectives more efficiently, ethics officials find it difficult to explain and justify to agency employees why a waiver is required for official board services that have been determined by the agency to be proper,” OGE wrote. “The potential for a real conflict of interest is too remote or inconsequential to affect the integrity of an employee’s services under these circumstances.”

The comment period for the rule ended early this month. I wasn’t able to determine what the time line for the next phase of the rule making might be.

I don’t imagine non profits will line up outside federal buildings throwing their best come hither looks at employees when the OGE issues their final ruling. (Okay, I lie. I can imagine non profits lined up giving federal employees come hither looks. It is very amusing.) But if you have tried to recruit a federal employees before or have been thinking of doing so, the opportunity may present itself in the near future.

About Joe Patti

I have been writing Butts in the Seats (BitS) on topics of arts and cultural administration since 2004 (yikes!). Given the ever evolving concerns facing the sector, I have yet to exhaust the available subject matter. In addition to BitS, I am a founding contributor to the ArtsHacker (artshacker.com) website where I focus on topics related to boards, law, governance, policy and practice.

I am also an evangelist for the effort to Build Public Will For Arts and Culture being helmed by Arts Midwest and the Metropolitan Group. (http://www.creatingconnection.org/about/)

My most recent role was as Executive Director of the Grand Opera House in Macon, GA.

Among the things I am most proud are having produced an opera in the Hawaiian language and a dance drama about Hawaii's snow goddess Poli'ahu while working as a Theater Manager in Hawaii. Though there are many more highlights than there is space here to list.

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