Benefit society

Examples of benefit societies can be found throughout history, including among secret societies of the Tang Dynasty in China and African-Americans during the post-revolutionary years, such as those who organized the Free African Society of Philadelphia, Pennsylvania. Philadelphia's first black organization, the Free African Society, was established in 1787 by two African American former enslaved people, Absalom Jones and Richard Allen. These two men were Methodist converts from evangelical masters, who permitted these men to purchase their freedom in the early 1780s. Mutual aid was a foundation of social welfare in the United States until the early 20th century. Early societies not only shared material resources but also often advanced social values related to self-reliance and moral character. Many fraternal organizations were initially established as mutual aid societies, as government at the state and local level provided more support to private aid societies than the reverse. In 1890, 112,000 American residents lived in private charitable institutions, while only 73,000 resided in public almshouses. Toward the latter part of the nineteenth century, public aid was reduced as it was seen as contributing to sloth and dependency. In contrast, private aid was judiciously provided with greater checks for reform and recovery. Writing in 1890, Jacob Riis, commenting on the extent of private charity, says: "New York is, I firmly believe, the most charitable city in the world. Nowhere is there so eager a readiness to help ..." Medieval guilds were an early basis for many Western benefit societies. A guild charter document from 1200 states: : "To become a gildsman,..it was necessary to pay certain initiation fees,..(and to take) an oath of fealty to the fraternity, swearing to observe its laws, to uphold its privileges, not to divulge its counsels, to obey its officers, and not to aid any non-gildsman under cover of the newly-acquired 'freedom. This charter shows the importance of 'brotherhood', and the principles of discipline, conviviality, and benevolence. The structure of fraternity in the guild forms the basis for orders such as Freemasonry and other fraternal orders, friendly societies, and modern trade unions. Joining such an organization, a member gained the 'freedom' of the craft and the exclusive benefits that the organization could confer on members. Historically, benefit societies have emphasized the importance of social discipline in conforming to the rules of the organization and society, and acting in a morally uplifting and ethical manner. Conviviality and benevolence are important principles. Fraternal societies differed from public and private hierarchical aid organizations by employing an "ethical principle of reciprocity." This removed the stigma of charity. During the eighteenth and nineteenth centuries, benefit societies in the form of friendly societies and trade unions were essential in providing social assistance for sickness and unemployment, and improving social conditions for a large part of the working population. With the introduction in the early twentieth century of state social welfare programs and industrial, health, and welfare regulation, the influence and membership of benefit societies have declined in importance but remain significant. Nevertheless, in Europe, mutual benefit societies continue to provide statutory and supplementary healthcare coverage, accounting for 25 percent of the insurance market. Peter Kropotkin posited early in the 20th century that mutual aid affiliations predate human culture and are as much a factor in evolution as is the "survival of the fittest" concept. Oaths, secret signs and knowledge, and regalia were historically an essential part of many benefit societies. Still, they declined in use in most benefit societies during the late nineteenth and early twentieth centuries. Conversely, signs and ceremonies have become the mainstay of fraternal societies that no longer focus as much on mutual aid. ==Current benefit societies==

Many of the features of benefit organizations today have been assimilated into organizations that rely on the corporate and political structures of our time. Insurance companies, religious charities, credit unions, and democratic governments now perform many of the same functions that were once the purview of ethnically- or culturally-affiliated mutual benefit associations. New technologies have provided yet more opportunities for humanity to support itself through mutual aid. Recent authors have described the networked affiliations that produce collaborative projects. In modern Asia, rotating credit associations organized within communities or workplaces were widespread through the early twentieth century and continue in our time. Habitat for Humanity in the United States is a leading example of shared credit and labor pooled to help low-income people afford adequate housing. In post-disaster reactions, formal benefit societies of our time often lend aid to others outside their immediate membership. In contrast, ad hoc benefit associations form among neighbors or refugees, generally lasting only as long as the emergency exists. Ad hoc mutual aid associations have been seen organized among strangers facing shared challenges in such disparate settings as the Woodstock Music and Arts Festival in New York in 1969, during the Beijing Tiananmen Square protests of 1989, for neighborhood defense during the Los Angeles Riots of 1992, and work of the organization Common Ground Collective which formed in New Orleans after Hurricane Katrina in 2005. The Rainbow Family organizes gatherings in National Forests of the United States each year around age-old models of ad hoc mutual aid. == North America ==

Benefit societies, fraternal benefit societies or "fraternals" are not-for-profit membership organizations that have a representative form of government and are organized through a lodge system, commonly represented in the societies of North America. to carry out social, intellectual, educational, charitable, benevolent, moral, fraternal, patriotic or religious purposes. Fraternals provide members with life insurance and other financial protection benefits following state law and use the earnings to fund member-supported community activities. Fraternal benefit societies are chartered by state law and have been exempt from income tax under Section 501(c)(8) of the United States Tax Code since 1909. History Fraternal Benefit Societies trace their lineage back through mutual societies, friendly societies and eventually to medieval guilds. Many fraternal benefit societies were founded to serve the needs of immigrants and other underserved groups who shared common bonds of religion, ethnicity, gender, occupation, or shared values. The first modern American fraternal benefit society was the Ancient Order of United Workmen, founded by John J. Upchurch in 1868. "The Order of Knights of Pythias is a great international fraternity which was founded in Washington, DC, February 19, 1864, by Justus H. Rathbone..." The Knights had an "Endowment Rank" which included life, health and disability insurance. As Walter Bayse wrote in his history of fraternal insurance: National Union v. Marlow The court's opinion in National Union v. Marlow is considered to be the leading judicial pronouncement of what constitutes a fraternal society. As indicated in this case, a fraternal benefit society is required to have a "common bond" among its members. A fraternal benefit society operates under a lodge system if it has a supreme governing body and subordinate lodges into which members are elected, initiated, or admitted under its laws. A society has a representative form of government if its supreme governing body is an assembly composed of delegates elected directly by members or intermediate assemblies, or a board similarly elected. Fraternal benefit societies provide insurance benefits to their members, including life insurance and endowments, annuities, disability, hospital, medical, and nursing benefits, and such other benefits authorized for life insurers that are not inconsistent with the general fraternal laws. 21st century In the 21st century, fraternal benefit societies remain active in the United States. In addition to the mutual benefits provided to members, many fraternal benefit societies engage in charitable and volunteer efforts of lodge members in the broader community. More than 80 fraternal benefit societies are operating in the United States and Canada today, with over 9 million members and with $380 billion of life insurance in force. == List of benefit societies ==