The Department of Veterans' Affairs may (1) receive gifts, grants, bequests, contributions, or donations from public or private sources, (2) purchase or receive gifts of such real estate as may be necessary or advantageous for carrying out the duties and functions of the department, and (3) contract with public or private groups to conduct department business. All property of the department shall be free from taxation during the period of time such property is held or used by the department.