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BACKGROUND ABOUT THE VA-AFFILIATED NONPROFIT
RESEARCH AND EDUCATION CORPORATIONS
In 1988, Title 38, sections 7361-7368,
authorized Department of Veterans Affairs medical centers to establish
nonprofit research and education foundations. These organizations are
also known as the VA affiliated nonprofit research and education
corporations (NPCs). This statute provides VA medical centers with a
flexible funding mechanism to accept and administer private sector and
federal research and education funds. An NPC may accept any funds other
than those appropriated to the Department of Veterans Affairs. Each NPC
is an independent, state chartered, tax exempt organization under the
Internal Revenue Code section 501(c)(3).
NPCs are established solely to advance
medical knowledge through the support of VA research and research related
activities as well as medical education. All studies supported by NPCs
are VA research conducted for the purpose of discovering new or improved treatments
for disease and disability. Educational programs supported by NPC
must benefit VA personnel or patients and their families.
NPCs accept funds under grants,
agreements, and gifts from individuals, for-profit companies, charitable
foundations, non-VA federal agencies, state agencies, professional
societies, patient advocacy organizations and other nonprofit entities.
Because the statutory purpose of these foundations is to facilitate VA
research and education, all funds received or administered must be
expended to support VA research and education activities. Contributions
and expenditures are subject to the laws of the state of incorporation
and applicable federal law.
All research projects administered by the
VA-affiliated nonprofit research corporations must be approved by the
local VA Research and Development (R&D) Committee and the facility
institutional review board (IRB). The facility's R&D Committee has
overall responsibility for the conduct of all research administered by
the corporation, and the research is governed by federal rules and
regulations. Education activities must be approved by the facility
Education Committee.
Most activities supported by
NPCs are conducted in VA facilities and are likely to involve VA
employees and VA patients. As a result, federal regulations and federal
laws govern access to patient records and treatment for research related
injuries as well as intellectual property and patent rights. Also,
subject to certification by the Attorney General that an employee was
performing services within the scope of government employment, actions
of corporation employees, whether working on a full time, part time or
without compensation (WOC) basis, generally will be protected from
personal liability under the Federal Tort Claims Act.
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