Sponsors (26)
The bill affirms and clarifies the community and financial-security role of fraternal societies—supporting members and nonprofits—while preserving tax-exempt preferences that reduce federal revenue and could be used to justify shrinking public social supports.
Parents, families, and low-income individuals benefit because recognized fraternal societies provide about $3.8 billion per year in charitable services, education, and volunteer activities.
Low-income individuals and families gain greater informal financial security because fraternal societies help members save and insure against hardship, which can reduce demand on government safety-net programs.
Nonprofits receive greater regulatory certainty because the bill affirms longstanding tax-exempt status for member-based mutual aid organizations.
Low-income individuals could face reduced public support if policymakers treat fraternal societies as substitutes for government programs, potentially leading to cuts in government social services.
All taxpayers may bear higher net costs because reaffirming tax-exempt status preserves tax preferences that reduce federal tax revenue.
Based on analysis of 2 sections of legislative text.
Recognizes fraternal benefit societies as longstanding mutual-aid organizations that provide life, health, accident, and other benefits through chapter-based membership, noting about 7,000,000 members and an estimated annual societal contribution of over $3.8 billion in charitable giving, education, volunteer activities, and social capital. Notes the historical federal tax treatment codified at Internal Revenue Code section 501(c)(8), the societies’ adaptation since 1909, and that their work helps reduce pressure on government safety-net programs. This is a findings/recognition resolution that expresses Congress’s view of these organizations; it does not itself change tax law, create new programs, or appropriate funds.
Introduced January 24, 2025 by Michael Dean Crapo · Last progress January 24, 2025