Sponsors (122)
The resolution affirms and preserves tax-exempt recognition of fraternal societies, supporting benefits for millions and community charitable activity while creating a modest federal revenue cost and a risk that the findings could be used to justify reduced public spending or create expectations without binding policy.
Local communities and vulnerable populations benefit from volunteer services and charitable programs provided by fraternal societies, valued at about $3.8 billion annually, supporting education and social needs.
About 7 million members and their families (including many middle-class and parent households) retain access to life, health, and accident benefits through recognized fraternal societies.
Affirming these organizations' 501(c)(8) tax‑exempt status reduces operating costs for the societies and their members, helping them provide benefits affordably.
Recognizing 501(c)(8) tax-exempt status represents a tax expenditure that reduces federal revenue and could slightly limit resources available for other government programs.
The findings that fraternal societies relieve pressure on government safety nets could be used to justify reducing public spending on social programs, potentially harming low-income individuals who rely on them.
Because the provision is declaratory (findings rather than operative law), it may have no direct legal effect while signaling favorable treatment and creating expectations without concrete policy change for nonprofits and members.
Based on analysis of 2 sections of legislative text.
Makes a nonbinding congressional recognition of the history, membership, community service, and tax-exempt origins of fraternal benefit societies (IRC 501(c)(8)).
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, community role, volunteer contributions, membership size, and tax-exempt origins of American fraternal benefit societies, citing their origins in a 1909 Congressional action later reflected in IRC section 501(c)(8). The resolution highlights that these societies provide life, health, accident, and other benefits through local chapters and supplement government safety nets while adapting over time to serve members and communities. The measure is a nonbinding statement of findings and appreciation intended to acknowledge these organizations’ public-service role and charitable activities; it does not change tax law or create new programs or funding.