The Alliance staff, Board of Directors, Board committees and task forces work together in a variety of ways to identify issues on which the Alliance focuses.
Fraternal Tax Exemption
Preserving the 501(C)8 tax exempt status of fraternals is one the Alliance’s highest priorities. The community service and member activities of the more than seven million fraternal members organized in local chapters across the United States are made possible by the resources generated through providing insurance products to fraternal members, as required under Section 501(c)(8) of the Internal Revenue Code and various state laws.
The Alliance and its dedicated members and partners work with legislative champions to introduce Senate and House Congressional Resolutions which acknowledge the role that fraternals play in securing the financial futures of members and the impact of community service in legislators’ communities.
S. Con. Res 10 is the resolution that expresses 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.
Regular Meetings with Key Legislators
The Alliance and its advocacy groups and federal lobbying firm conduct meetings between fraternal executives and legislators to foster solid relationships and a greater understanding of the role that fraternals play in securing the financial futures of members and the impact of community service in legislators’ communities.
Studies Supporting the Important Role Fraternals Play Across the Nation
Fraternal Economic/Social Impact Study - Full Study (2014) Study conducted by Georgetown University McDonough School of Business
Fraternal Economic/Social Impact Study - Executive Summary Study conducted by Georgetown University McDonough School of Business
Fraternal Solvency Legislation
In 2018, the Alliance developed legislation to strengthen fraternal solvency, receivership, and liquidation regulations in many states.
To ensure the introduction and passage of this legislation, the Alliance and fraternal CEOs in domiciled states meet regularly to inform their state legislators on the benefits of enacting the Alliance-sponsored legislation to strengthen the fraternal system and protect policyholders.
Due to the support of Alliance members and active committee members, the following states have enacted this legislation:
- Texas Fraternal Solvency Legislation
- Minnesota Fraternal Solvency Legislation
- Wisconsin Fraternal Solvency Legislation
State Tax Exemption
The Alliance works hard to successfully defeat state legislation that would undermine or impair fraternals’ ability to fulfill their financial services and community service missions. In 2019, the Alliance mobilized its staff, leaders and dedicated volunteers to visit state capitols to inform lawmakers about how their organizations are able to make a significant impact in their states because of the fraternal tax exemption.