Veterans Service Organizations (VSOs): Frequently Asked Questions

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Veterans Service Organizations (VSOs):
~~February 10, 2021~~August 5, 2022
Frequently Asked Questions
Tamar B. Breslauer
Veterans Service Organizations (VSOs) offer a range of services for veterans, Veterans Service Organizations (VSOs) offer a range of services for veterans,
Senior Research LibrarianResearch Librarian
servicemembers, dependents, and survivors. Some VSOs may provide programming for servicemembers, dependents, and survivors. Some VSOs may provide programming for

veterans in their communities, such as job fairs; others may organize events to raise veterans in their communities, such as job fairs; others may organize events to raise
Carol D. Davis
money for a subset of veterans, such as housing for homeless veterans. Some VSOs train money for a subset of veterans, such as housing for homeless veterans. Some VSOs train
Senior Research Librarian Senior Research Librarian
individuals to meet federal regulatory requirements to become accredited representatives individuals to meet federal regulatory requirements to become accredited representatives

who can represent claimants before the Department of Veterans Affairs’ (VA’s) regional who can represent claimants before the Department of Veterans Affairs’ (VA’s) regional
offices and its Board of Veterans’ Appeals. This report answers frequently asked offices and its Board of Veterans’ Appeals. This report answers frequently asked

questions to clarify how VSOs are funded, administered, and connected to the federal questions to clarify how VSOs are funded, administered, and connected to the federal
government. government.

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Veterans Service Organizations: FAQ

What Are Veterans Service Organizations?
Veterans Service Organizations (VSOs) are organizations that aid and serve veterans, Veterans Service Organizations (VSOs) are organizations that aid and serve veterans,
servicemembers, dependents, and survivors. Descriptions of different types of VSOs appear in the servicemembers, dependents, and survivors. Descriptions of different types of VSOs appear in the
Department of Veterans Affairs’ (VA’s) Department of Veterans Affairs’ (VA’s) 2019 Directory: Veterans and Military Service
Organizations and State Directors of Veterans Affairs ( (Directory of VSOs).1 ).1
According to the directory, VSOs may fall into one or more of the following categories: According to the directory, VSOs may fall into one or more of the following categories:
 congressionally chartered organizations;2  congressionally chartered organizations;2
 organizations recognized by VA;3  organizations recognized by VA;3
 organizations recognized by VA to prepare, present, and prosecute claims;4  organizations recognized by VA to prepare, present, and prosecute claims;4
 national organizations;5  national organizations;5
 state, county, or tribal governmental organizations; 6  state, county, or tribal governmental organizations; 6
 regional or local organizations;7 or  regional or local organizations;7 or
 nonprofit organizations.  nonprofit organizations.
There is no uniformly applied statutory definition of the term There is no uniformly applied statutory definition of the term VSO, but certain laws use the term , but certain laws use the term
more narrowly than the more narrowly than the Directory of VSOs. For example, the Veterans Appeals Improvement and . For example, the Veterans Appeals Improvement and
Modernization Act of 2017 (P.L. 115-55) stated: “The term ‘veterans service organization’ means Modernization Act of 2017 (P.L. 115-55) stated: “The term ‘veterans service organization’ means
any organization recognized by the Secretary for the representation of veterans under section any organization recognized by the Secretary for the representation of veterans under section
5902 of title 38, 5902 of title 38, United States Code.” Also, the Internal Revenue Code (IRC) defines veterans .” Also, the Internal Revenue Code (IRC) defines veterans
organizations for the purpose of determining tax status in the IRC section 501(c). More organizations for the purpose of determining tax status in the IRC section 501(c). More
information on this topic can be accessed from the Internal Revenue Service website on its information on this topic can be accessed from the Internal Revenue Service website on its
“Veterans Organizations” page, at https://www.irs.gov/charities-non-profits/other-non-profits/“Veterans Organizations” page, at https://www.irs.gov/charities-non-profits/other-non-profits/
veterans-organizations. veterans-organizations.
What Services and Activities Are Supported by Veterans Service
Organizations?
VSOs serve veterans, and their activities may encompass a range of services, such as VSOs serve veterans, and their activities may encompass a range of services, such as
 providing programming for veterans in their communities, such as job fairs;  providing programming for veterans in their communities, such as job fairs;

1 Department of Veterans Affairs (VA), 1 Department of Veterans Affairs (VA), 2019 Directory: Veterans and Military Service Organizations and State
Directors of Veterans Affairs, at https://www.va.gov/vso/VSO-Directory.pdf (hereinafter cited as , at https://www.va.gov/vso/VSO-Directory.pdf (hereinafter cited as Directory of VSOs). ).
2 According to Title 36 of the 2 According to Title 36 of the United States Code, congressionally chartered organizations are those that have as their , congressionally chartered organizations are those that have as their
purpose the promotion of patriotic, charitable, historical, educational, or similar activities. purpose the promotion of patriotic, charitable, historical, educational, or similar activities.
338 C.F.R. §14.628 (Recognition of Organizations). 338 C.F.R. §14.628 (Recognition of Organizations).
4 According to VA’s Office of General Counsel, 4 According to VA’s Office of General Counsel,
Under the authority granted in section 5902 of title 38, Under the authority granted in section 5902 of title 38, United States Code, VA may recognize , VA may recognize
organizations for the purpose of assisting claimants for VA benefits in the preparation, organizations for the purpose of assisting claimants for VA benefits in the preparation,
presentation, and prosecution of their claims. VA has implemented this authority in section 14.628 presentation, and prosecution of their claims. VA has implemented this authority in section 14.628
of title 38, of title 38, Code of Federal Regulations, which prescribes the application requirements for national, , which prescribes the application requirements for national,
state, and regional or local organizations. state, and regional or local organizations.
5 38 C.F.R. §14.628(a). 5 38 C.F.R. §14.628(a).
6 38 C.F.R. §14.628(b)(1) (State organizations); 38 C.F.R. §14.628(b)(2) (Tribal organizations). 6 38 C.F.R. §14.628(b)(1) (State organizations); 38 C.F.R. §14.628(b)(2) (Tribal organizations).
7 38 C.F.R. §14.628(c). 7 38 C.F.R. §14.628(c).
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 organizing events to raise money for a subset of veterans, such as housing for  organizing events to raise money for a subset of veterans, such as housing for
homeless veterans; or homeless veterans; or
 providing access to accredited veterans service representatives who can help  providing access to accredited veterans service representatives who can help
veterans when they apply for VA benefits. veterans when they apply for VA benefits.
Are Veterans Service Organizations Federal Agencies?
VSOs are not federal agencies. VSOs may be nonprofit organizations or state, county, tribal, or VSOs are not federal agencies. VSOs may be nonprofit organizations or state, county, tribal, or
local government agencies. Employees who work for VSOs are not federal employees. local government agencies. Employees who work for VSOs are not federal employees.
The VA Secretary may make space available in departmental facilities for individuals who work The VA Secretary may make space available in departmental facilities for individuals who work
for national VSOs that have been recognized by the Secretary. According to 38 U.S.C. for national VSOs that have been recognized by the Secretary. According to 38 U.S.C.
§5902(a)(2), “the Secretary may, in the discretion of the Secretary, furnish, if available, space and §5902(a)(2), “the Secretary may, in the discretion of the Secretary, furnish, if available, space and
office facilities for the use of paid full-time representatives of national organizations so office facilities for the use of paid full-time representatives of national organizations so
recognized.” Thus, while employees of some VSOs may be physically working at VA federal recognized.” Thus, while employees of some VSOs may be physically working at VA federal
facilities, they are not federal workers. The VSO employees are positioned in these facilities to facilities, they are not federal workers. The VSO employees are positioned in these facilities to
conveniently assist veterans, their spouses, and their beneficiaries. conveniently assist veterans, their spouses, and their beneficiaries.
What Are Congressionally Chartered Veterans Service
Organizations?
Congressionally chartered VSOs are organizations that have been granted charters by Congress Congressionally chartered VSOs are organizations that have been granted charters by Congress
through the enactment of public laws. Each congressionally chartered VSO is listed in 36 U.S.C. through the enactment of public laws. Each congressionally chartered VSO is listed in 36 U.S.C.
Subtitle II: Patriotic and National Organizations. Subtitle II: Patriotic and National Organizations.
A VSO is “congressionally chartered” if Congress has passed a law that chartered the A VSO is “congressionally chartered” if Congress has passed a law that chartered the
organization. Provisions related to congressional charters are codified in 36 U.S.C. Subtitle II. organization. Provisions related to congressional charters are codified in 36 U.S.C. Subtitle II.
According to the According to the Directory of VSOs,8,8 the last VSO chartered by Congress was the Military the last VSO chartered by Congress was the Military
Officers Association of America in 2009.9 Congress may amend existing charters, which often Officers Association of America in 2009.9 Congress may amend existing charters, which often
include conditions for membership, mission, or other characteristics of the particular VSO. include conditions for membership, mission, or other characteristics of the particular VSO.
Among the congressionally chartered VSOs are the American Legion,10 which was chartered in Among the congressionally chartered VSOs are the American Legion,10 which was chartered in
1919, and Disabled American Veterans (DAV),11 which was chartered in 1932. 1919, and Disabled American Veterans (DAV),11 which was chartered in 1932.
What Are Recognized Veterans Service Organizations?
A recognized VSO is one that has been recognized by VA,12 which means that the organization A recognized VSO is one that has been recognized by VA,12 which means that the organization
has satisfied multiple requirements outlined in 38 C.F.R. §14.628. Recognized VSOs may be has satisfied multiple requirements outlined in 38 C.F.R. §14.628. Recognized VSOs may be
national organizations, state organizations, regional or local organizations, or tribal national organizations, state organizations, regional or local organizations, or tribal
organizations.13 organizations.13
Recognized VSOs are not individually named in the Recognized VSOs are not individually named in the U.S. Code. Authority to determine that a . Authority to determine that a
VSO is “recognized” is granted to the VA Secretary in 38 U.S.C. §5902 (Recognition of VSO is “recognized” is granted to the VA Secretary in 38 U.S.C. §5902 (Recognition of

8 See 8 See Directory of VSOs, at https://www.va.gov/vso/VSO-Directory.pdf. , at https://www.va.gov/vso/VSO-Directory.pdf.
9 See 36 U.S.C. §§140401-140412. 9 See 36 U.S.C. §§140401-140412.
10 See 36 U.S.C. §§21701-21708. 10 See 36 U.S.C. §§21701-21708.
11 See 36 U.S.C. §§50301-50309. 11 See 36 U.S.C. §§50301-50309.
12 38 C.F.R. §14.628(d) describes the requirements that must be met for recognition. 12 38 C.F.R. §14.628(d) describes the requirements that must be met for recognition.
13 See VA,13 See VA, “Recognition of Tribal Organizations for Representation of VA Claimants,” 82 “Recognition of Tribal Organizations for Representation of VA Claimants,” 82 Federal Register 6265, 6265,
January 19, 2017. January 19, 2017.
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representatives of organizations). The specific regulations that apply to recognized VSOs appear representatives of organizations). The specific regulations that apply to recognized VSOs appear
in 38 C.F.R. §14.628 (Recognition of organizations). in 38 C.F.R. §14.628 (Recognition of organizations).
The requirements to become a recognized VSO include, but are not limited to The requirements to become a recognized VSO include, but are not limited to
 having a primary purpose to serve veterans;  having a primary purpose to serve veterans;
 demonstrating commitment to veterans through a sizeable organizational  demonstrating commitment to veterans through a sizeable organizational
membership or performance of veterans services; membership or performance of veterans services;
 committing a significant portion of the organization’s assets to veterans services;  committing a significant portion of the organization’s assets to veterans services;
and and
 submitting evidence that the organization will represent claimants or that it will  submitting evidence that the organization will represent claimants or that it will
inform claimants on how to find accredited representation. inform claimants on how to find accredited representation.
VSOs provide evidence to the VA Secretary that they meet these criteria through documentation VSOs provide evidence to the VA Secretary that they meet these criteria through documentation
(e.g., membership data, bylaws, description of services provided, and copies of their financial (e.g., membership data, bylaws, description of services provided, and copies of their financial
statements). In cases where the organization provides VA claims services, evidence must be statements). In cases where the organization provides VA claims services, evidence must be
provided that the group has the capability to represent claimants before VA regional offices and provided that the group has the capability to represent claimants before VA regional offices and
VA’s Board of Veterans’ Appeals. VA’s Board of Veterans’ Appeals.
Do Veterans Service Organizations Provide Access to Accredited
Representatives?
Recognized VSOs may provide access to accredited representatives, who assist claimants with Recognized VSOs may provide access to accredited representatives, who assist claimants with
their affairs before VA. Not all recognized VSOs provide accredited representatives to represent their affairs before VA. Not all recognized VSOs provide accredited representatives to represent
claimants. The recognized VSOs that do not represent claimants must illustrate how they will claimants. The recognized VSOs that do not represent claimants must illustrate how they will
inform veterans of the limited services they can provide, as well as how they will advise veterans inform veterans of the limited services they can provide, as well as how they will advise veterans
on how to find accredited representation. on how to find accredited representation.
Recognized VSOs submit applications of individuals seeking to become accredited Recognized VSOs submit applications of individuals seeking to become accredited
representatives to VA’s Office of General Counsel for accreditation. These applications include representatives to VA’s Office of General Counsel for accreditation. These applications include
evidence that the individuals have been trained and meet specific qualifications.14 Recognized evidence that the individuals have been trained and meet specific qualifications.14 Recognized
VSOs that provide access to accredited representatives often also provide the required continuing VSOs that provide access to accredited representatives often also provide the required continuing
learning credits that representatives must periodically complete. learning credits that representatives must periodically complete.
Accredited representatives who work for VSOs may not charge their clients fees. For more Accredited representatives who work for VSOs may not charge their clients fees. For more
information on accredited representatives, see CRS Report R46428, information on accredited representatives, see CRS Report R46428, Veterans Accredited
Representatives: Frequently Asked Questions. .
How Are Veterans Service Organizations Funded?
VSOs may receive funding from state, county, or private funding sources. They may also receive VSOs may receive funding from state, county, or private funding sources. They may also receive
federal grants to support specific activities. federal grants to support specific activities.

14 See 38 U.S.C. §§5901-5905; 38 C.F.R. §§14.626-14.637. 14 See 38 U.S.C. §§5901-5905; 38 C.F.R. §§14.626-14.637.
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Do Veterans Service Organizations Provide Reports to the Federal
Government?
Certain VSOs have varying federal reporting requirements. Some may be required to file with the Certain VSOs have varying federal reporting requirements. Some may be required to file with the
Internal Revenue Service (IRS);15 others may be required to submit reports as a result of Internal Revenue Service (IRS);15 others may be required to submit reports as a result of
provisions in their congressional charters.16 There is no uniform requirement for all VSOs or all provisions in their congressional charters.16 There is no uniform requirement for all VSOs or all
congressionally chartered VSOs to submit reports. congressionally chartered VSOs to submit reports.
Does the Department of Veterans Affairs Provide Grants Specifically for Veterans
Service Organizations?
Most VA support is designed to aid individual veterans rather than organizations that serve Most VA support is designed to aid individual veterans rather than organizations that serve
veterans. On occasion, Congress has authorized VA to administer grants for which applications veterans. On occasion, Congress has authorized VA to administer grants for which applications
may be solicited from VSOs. For example, the Veterans Transportation Program notes the may be solicited from VSOs. For example, the Veterans Transportation Program notes the
following requirement for applicants for its Highly Rural Transportation Grants: following requirement for applicants for its Highly Rural Transportation Grants:
Only a Veterans Service Organization (VSO) or a State Veterans Service Agency can Only a Veterans Service Organization (VSO) or a State Veterans Service Agency can
apply, according to paragraphs (a)(2)(A)-(B) of section 307 of the 2010 Act. VSO must be apply, according to paragraphs (a)(2)(A)-(B) of section 307 of the 2010 Act. VSO must be
recognized by the Secretary of Veterans Affairs for the representation of Veterans under recognized by the Secretary of Veterans Affairs for the representation of Veterans under
section 5902 of Title 38, section 5902 of Title 38, United States Code.17 .17
Do Other Federal Agencies Offer Grants for Veterans Service
Organizations?
VSOs may be eligible for federal support based on the services they provide or the community VSOs may be eligible for federal support based on the services they provide or the community
needs they fill.needs they fill. They may also be eligible for funding if their IRS tax-exempt status category is among those deemed eligible for a particular grant.18 For more information on funding, congressional offices may consult the CRS For more information on funding, congressional offices may consult the CRS
“Grants and Federal Assistance” page, available at https://www.crs.gov/Resources/Grants. “Grants and Federal Assistance” page, available at https://www.crs.gov/Resources/Grants.
Where Can I Find a Directory of All Veterans Service
Organizations?
No single resource provides a comprehensive list of all VSOs. The following resources provide No single resource provides a comprehensive list of all VSOs. The following resources provide
~~selected~~ lists of lists of selected VSOs: VSOs:
 VA, “E-Benefits: Manage your representative for VA Claims,”  VA, “E-Benefits: Manage your representative for VA Claims,”18
~~ VA, “VSOs in Regional VA Offices,”19~~
~~ Directory of VSOs, at https://www.va.gov/vso/VSO-Directory.pdf,20~~
~~ VA, “Directory of State Veterans Affairs Offices,”21 and~~
~~ 36 U.S.C. Subtitle II: Patriotic and National Organizations.~~
19
15 See CRS Report R40919, 15 See CRS Report R40919, An Overview of the Nonprofit and Charitable Sector for filing information. for filing information.
16 See, for example, 36 U.S.C. §§120101-120112, requiring an annual report to be submitted to Congress. 16 See, for example, 36 U.S.C. §§120101-120112, requiring an annual report to be submitted to Congress.
17 See VA, “Health Benefits,” at https://www.va.gov/healthbenefits/vtp/grant_applicants.asp. 17 See VA, “Health Benefits,” at https://www.va.gov/healthbenefits/vtp/grant_applicants.asp.
1818 For example, the Department of the Treasury issued a Final Rule on January 27, 2022, making 501(c)(19) organizations among the nonprofits eligible for funding from allocations from the Coronavirus State Fiscal Recovery Fund and the Coronavirus Local Fiscal Recovery Fund that were established under the American Rescue Plan Act (see 87 Federal Register 4338, January 27, 2022). More information on the Internal Revenue Code classifications for VSOs can be accessed from the Internal Revenue Service (IRS) website’s “Veterans’ Organizations” page at https://www.irs.gov/charities-non-profits/other-non-profits/veterans-organizations, as well as from lRS Publication 3386, “Tax Guide for Veterans’ Organizations,” at https://www.irs.gov/pub/irs-pdf/p3386.pdf. 19 See VA, eBenefits, “Manage Your Representative for VA Claims,” at https://www.ebenefits.va.gov/ebenefits/vso- See VA, eBenefits, “Manage Your Representative for VA Claims,” at https://www.ebenefits.va.gov/ebenefits/vso-
search. Includes search for recognized VSO, accredited attorneys, and accredited claims agents. search. Includes search for recognized VSO, accredited attorneys, and accredited claims agents.
~~19 See VA, “VSOs at Regional Benefit Offices,” at https://www.benefits.va.gov/vso/varo.asp.~~
20 See Directory of VSOs, Congressional Research Service 4 Veterans Service Organizations: FAQ  VA, “VSOs in Regional VA Offices,”20  Directory of VSOs, at https://www.va.gov/vso/VSO-Directory.pdfat https://www.va.gov/vso/VSO-Directory.pdf.
~~21 See VA, “State Veteran Affairs Offices,” at https://www.va.gov/statedva.htm.~~
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,21  VA, “Directory of State Veterans Affairs Offices,”22 and  36 U.S.C. Subtitle II: Patriotic and National Organizations.
Author Information

Tamar B. Breslauer Tamar B. Breslauer
Carol D. Davis Carol D. Davis
Senior Research LibrarianResearch Librarian
Senior Research Librarian Senior Research Librarian

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
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20 See VA, “VSOs at Regional Benefit Offices,” at https://www.benefits.va.gov/vso/varo.asp. 21 See Directory of VSOs, at https://www.va.gov/vso/VSO-Directory.pdf. 22 See VA, “State Veteran Affairs Offices,” at https://www.va.gov/statedva.htm. Congressional Research Service Congressional Research Service
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