Fraternal Organizations: Definition, Structure, and Benefits

A fraternal organization is a social group or membership organization whose members freely associate for a mutually beneficial purpose, such as social, professional, or honorary principles. The term “fraternal” is derived from the Latin word “frater,” meaning “brother.”

Key Facts

  1. Definition: A fraternal organization is a brotherhood or social organization where members freely associate for a mutually beneficial purpose, such as social, professional, or honorary principles.
  2. Common Bonds: Fraternal organizations are formed based on a common bond, such as shared interests, academic pursuits, religious beliefs, or professional affiliations.
  3. Examples: Fraternal organizations include college fraternities, trade guilds, professional organizations, civic clubs, and secret orders like the Freemasons.
  4. Benefits: Fraternal organizations provide deep networks for members, offering social activities, leadership training, and continuing education opportunities.
  5. Tax Treatment: Fraternal organizations often receive preferential tax treatment as 501(c)10 organizations. They may also provide benefits to members, such as discounted life or health insurance coverage.
  6. Establishment: Fraternal organizations have existed since early in the development of society and have evolved over time. Some early organizations were based on faith-driven precepts that encourage cooperation and support among members.

Common Bonds and Examples

Fraternal organizations are formed based on a common bond, such as shared interests, academic pursuits, religious beliefs, or professional affiliations. Examples of fraternal organizations include college fraternities, trade guilds, professional organizations, civic clubs, and secret orders like the Freemasons.

Benefits of Membership

Fraternal organizations provide deep networks for members, offering social activities, leadership training, and continuing education opportunities. They foster a sense of community and belonging among members who share similar values and goals.

Tax Treatment

Fraternal organizations often receive preferential tax treatment as 501(c)10 organizations under the Internal Revenue Code. To qualify for this status, an organization must have a fraternal purpose, operate under the lodge system, and provide benefits to members and their dependents in the event of injury, accident, or other calamities.

Establishment and Evolution

Fraternal organizations have existed since early in the development of society and have evolved over time. Some early organizations were based on faith-driven precepts that encourage cooperation and support among members. While the concept of a fraternal organization is derived from the idea of brotherhood, many organizations continue to be exclusively comprised of men, memberships do not necessarily have to be restricted by gender.

Sources

FAQs

What is a fraternal organization?

A fraternal organization is a social group or membership organization whose members freely associate for a mutually beneficial purpose, such as social, professional, or honorary principles.

What are some examples of fraternal organizations?

Examples of fraternal organizations include college fraternities, trade guilds, professional organizations, civic clubs, and secret orders like the Freemasons.

What are the benefits of joining a fraternal organization?

Fraternal organizations provide deep networks for members, offering social activities, leadership training, and continuing education opportunities. They foster a sense of community and belonging among members who share similar values and goals.

Do fraternal organizations receive any special tax treatment?

Yes, fraternal organizations often receive preferential tax treatment as 501(c)10 organizations under the Internal Revenue Code.

What are the requirements for a fraternal organization to qualify for 501(c)10 status?

To qualify for 501(c)10 status, a fraternal organization must have a fraternal purpose, operate under the lodge system, and provide benefits to members and their dependents in the event of injury, accident, or other calamities.

Are fraternal organizations only for men?

While the concept of a fraternal organization is derived from the idea of brotherhood, and many organizations continue to be exclusively comprised of men, memberships do not necessarily have to be restricted by gender.

How are fraternal organizations established?

Fraternal organizations are typically established by a group of individuals who share a common interest or goal. They may incorporate as a nonprofit organization and develop bylaws to govern their operations.

What is the history of fraternal organizations?

Fraternal organizations have existed since early in the development of society. Some early organizations were based on faith-driven precepts that encourage cooperation and support among members. Over time, fraternal organizations have evolved to reflect the changing needs and interests of their members.