Sponsors (112)
The resolution recognizes and preserves tax-exempt fraternal societies that provide substantial benefits and community services to millions and lower costs for members, but it affirms a tax expenditure and sends signals that could justify reduced public spending or create expectations without creating binding policy changes.
Low-income individuals and local communities receive continued volunteer services and charitable programs (valued around $3.8 billion/year) that support education and social needs.
About 7 million members and their families retain recognized access to fraternal society benefits (life, health, and accident), preserving coverage and financial protection for middle-class and parent households.
Nonprofit fraternal societies keep affirmed 501(c)(8) tax-exempt treatment, lowering operating costs and helping them provide cheaper member benefits and services.
Low-income individuals (and other groups relying on public programs) could face reduced government support if lawmakers cite the findings to justify cutting public social spending.
All taxpayers bear the cost of affirming a tax-exempt status because it represents a tax expenditure that reduces federal revenue available for other programs.
Nonprofits and stakeholders may gain expectations of favorable treatment from a purely declarative finding even though the section has no direct legal effect, creating uncertainty about actual policy change.
Based on analysis of 2 sections of legislative text.
Records congressional findings that recognize the history, membership, tax-exempt origins, and community role of fraternal benefit societies.
Official title: Expressing the sense of Congress that tax-exempt fraternal benefit societies have historically provided and continue to provide critical benefits to the people and communities of the United States.
Introduced January 28, 2025 by Darin Lahood · Last progress January 28, 2025
Recognizes and affirms the history, membership, community role, volunteer contributions, and tax-exempt origins of fraternal benefit societies in the United States. The resolution cites about 7 million members, an estimated annual societal value of roughly $3.8 billion, and notes the 1909 Congressional action that led to the current Internal Revenue Code provision for these organizations, while describing the benefits they provide and their local chapter structure.