In 2002, Congress amended the NPC authorizing statue to
expand NPCs' authority to include the ability to support education for
VA personnel as well as veterans and their families. Some NPCs may
find it necessary to take certain steps in order to take advantage of
this new authority.
The following checklist items apply when an NPC decides
to support education activities that have no relevance to research.
1. Review the authorizing statute (38
U.S.C. 7361-7366, section 7362) noting the elements applicable
to training
and education for VA staff and patients.
2. Approve a motion that the foundation will administer both
research and education activities. The decision whether to evolve into a
research and education foundation is strictly up to the board of the
existing foundation.
3. Review and revise bylaws as needed. At a minimum, the bylaws
will need to be revised to add a position on the board for the ACOS
Education or the VAMC individual with equivalent responsibilities. Other
changes in the bylaws may be necessary to fully incorporate education.
4. Review and revise articles of incorporation as needed. If the
articles provide for research and education, no action is required. If
only research is mentioned in the articles, check with the state
nonprofit oversight agency. The articles may need to be revised to
incorporate education and training and re-filed with the state.
5. Review application for tax exempt status (IRS Form 1023). If
the application reflects both research and education, no action is
required. If only research is mentioned in the application, notify the
IRS of a change in activity.
Accountant's
assessment of the steps an NPC should take to inform the IRS of
a change in activity.
Sample notification to the IRS
6. Establish policies and procedures for the VA Education Committee
to review and approve NPC education activities. If the VAMC does not
have an Education Committee, it will have to establish one in order for
the NPC to administer education activities. Some VAMCs may choose to
establish an Education Subcommittee to review foundation administered
education activities only and to recommend approval or disapproval by
the full Education Committee.
Sample policy for an Education Subcommittee
Sample request form
7. Establish internal accounting systems to track education
revenues and expenditures separately from research. Separate bank
accounts are not required. Review the Annual Report instructions in Appendix
A of Handbook 1200.17 and make sure that the NPC's accounting
systems will provide the necessary data.
