U.S. Reps. Darin LaHood (R-IL) and Randy Feenstra (R-IA) joined 48 of their colleagues in proposing a bipartisan resolution recognizing the benefits that tax-exempt fraternal benefit societies provide to local communities.
“Fraternal organizations play a vital role in Illinois communities by supporting important charitable causes and bringing people together,” said Rep. LaHood. “This resolution recognizes the ongoing work that over seven million Americans, including nearly 400,000 Illinoisans, do on behalf of their communities.”
Fraternals are mission-driven financial service organizations designated under Section 501(c)(8) of the tax code. By offering insurance benefits to their members, they support charitable and fraternal initiatives, promote financial security, and strengthen community ties, according to a summary provided by the lawmakers.
The fraternal model focuses on helping families achieve financial security while advancing national objectives, such as improving financial literacy and personal savings, and fraternals foster social and community connections through philanthropic and service-oriented programming, the summary says.
House Concurrent Resolution (H.Con.Res.) 4, which Rep. LaHood sponsored on Jan. 28 alongside 50 original cosponsors, including Rep. Feenstra and U.S. Rep. Gwen Moore (D-WI), would acknowledge that fraternals are positioned “to most efficiently address unmet needs in communities, many of which the government cannot address,” according to the text of the resolution.
“In Iowa, we take great pride in lending a helping hand to our neighbors and serving our communities,” said Rep. Feenstra. “I’m proud to support this resolution recognizing the important work of more than 180,000 Iowans who keep our communities strong.”
Additionally, H.Con.Res. 4 would resolve that it is the sense of Congress that the provision of payment for life, health, accident, or other benefits to the members of fraternals is necessary to support the charitable and fraternal activities of the volunteer chapters within the communities of fraternal benefit societies; that fraternals have adapted since 1909 to better serve their members and the public; and the exemption from taxation under the Internal Revenue Code of 1986 of fraternals continues to generate significant returns to the U.S., and their work should continue to be promoted, the text says.
“I look forward to continuing to work with my colleagues in Congress to promote the continued work of fraternals in communities for many years to come,” said Rep. LaHood.