Full Report
Nonprofits run out of US Border Patrol stations are also selling other “operation”-themed coins that include a phrase popularized by the Proud Boys, potentially in violation of government rules.
Analysis Summary
# Regulation/Compliance: DHS Directive 112-06 (Employee Associations) & Ethics Standards
## Overview
This compliance matter involves the regulation of private, not-for-profit employee associations (specifically "Morale, Welfare, and Recreation" or MWR groups) operating within Department of Homeland Security (DHS) facilities. The focus is on the unauthorized use of government resources, official seals, and the dissemination of "unprofessional" or politically charged merchandise that may violate federal ethics rules and agency-specific mandates.
## Key Details
- **Issuing Authority:** Department of Homeland Security (DHS) / U.S. Customs and Border Protection (CBP)
- **Effective Date:** Currently in effect (revisions periodically updated)
- **Jurisdiction:** Federal employees and recognized employee associations
- **Status:** In Effect (Compliance investigation pending)
## Requirements
### Mandatory Requirements
1. **Formal Recognition:** Groups must be formally recognized by the agency via a signed Memorandum of Agreement (MOA).
2. **Advance Approval:** Any merchandise or messaging utilizing the agency’s name, logo, or official seals must receive written approval from the agency before production or sale.
3. **Resource Separation:** While recognized groups may use government property for fundraising under specific conditions, they must not use government email accounts (`.gov`) or official time for unauthorized private business ventures.
4. **Professional Conduct:** Merchandise and messaging must adhere to agency standards of professionalism and neutrality; use of partisan political slogans or offensive imagery is prohibited.
### Recommended Practices
1. **Third-Party Hosting:** Host non-official commerce sites on private servers rather than government-associated platforms.
2. **Ethics Training:** Mandatory annual training for MWR board members regarding the use of official titles and symbols for fundraising.
## Affected Organizations
- **Industries:** Government, Nonprofits (Federal Employee Associations)
- **Organization Size:** All sizes of DHS-affiliated MWR and Relief groups.
- **Geographic Scope:** United States (Internal DHS/CBP infrastructure).
## Compliance Timeline
- **Ongoing:** Maintenance of "Tax-Exempt" status via IRS filings.
- **Immediate:** Regulatory requirement for advance approval of all "challenge coin" designs.
- **Pending:** Potential internal audits following reports of unauthorized symbolism.
## Implementation Guidance
### Assessment Phase
- Review all current inventory of "Challenge Coins" and merchandise for use of official CBP/DHS seals.
- Audit the metadata of nonprofit websites and social media to ensure no government email addresses are used as primary contact points for sales.
### Implementation Phase
- Submit all "North American Tour" or "Operation" themed designs to the Office of Public Affairs/Ethics for retroactive or prospective approval.
- Remove products containing non-neutral political acronyms (e.g., "FAFO") or unauthorized depictions of leadership.
### Validation Phase
- Verification of signed MOAs between the field station (e.g., Willcox Station) and the associated MWR nonprofit.
## Technical Requirements
- **Email Security/Compliance:** Restricted use of `.gov` domains for non-official, private nonprofit commerce.
- **Intellectual Property:** Compliance with federal laws regarding the reproduction of the Department of Homeland Security seal (18 U.S.C. § 701, § 506).
## Penalties & Enforcement
- **Fines:** Potential IRS penalties if tax-exempt status is found to be a front for unauthorized commercial activity.
- **Other Consequences:** Reprimands or termination for federal agents found in violation of the Hatch Act or DHS ethics rules; revocation of the association's "recognized" status.
- **Enforcement:** DHS Office of Inspector General (OIG) and Office of Professional Responsibility (OPR).
## Related Standards
- **Hatch Act:** Restricts federal employees from engaging in political activity while on duty or in a federal building.
- **IRS 501(c)(3) Standards:** Requirements for maintaining tax-exempt status for morale and welfare groups.
## Resources
- **Official Documentation:** [DHS Management Directive 112-06](https://www.dhs.gov/sites/default/files/publications/mgmt/regulatory-development/mgmt-dir_112-06-employee-associations_revision-00.pdf) (Defanged)
- **Guidance Documents:** CBP Ethics and Standards of Conduct Handbook.
## Practical Recommendations
- **Immediate Action:** MWR associations should freeze the sale of items featuring the Border Patrol logo and "operation"-themed slogans until a formal legal review is completed.
- **Operational Hygiene:** Transition all nonprofit communications from `@cbp.dhs.gov` to private `@gmail.com` or independent domains to avoid "Misuse of Position" allegations.