A concurrent resolution expressing 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.
- Bill Number
- S.Con.Res. 6
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-01-24: Referred to the Committee on Finance. (text: CR S374)
- Last Updated
- 2026-06-18T15:22:32Z
AI-Generated Summary
Purpose
This concurrent resolution (S. Con. Res. 6) expresses the sense of Congress regarding the historical and ongoing value of tax-exempt fraternal benefit societies. These are nonprofit organizations that provide mutual aid, insurance benefits (like life, health, and accident coverage), and community support through volunteer chapters. The resolution aims to recognize their contributions to society and affirm the importance of their tax-exempt status under U.S. law.
Key Provisions
The resolution includes a series of "Whereas" clauses outlining the background and benefits of fraternal benefit societies, followed by four main resolved statements that represent Congress's non-binding opinion:
- Successful private sector model: Fraternal benefit societies form an effective economic and social support system that addresses unmet community needs through member-driven activities.
- Necessity of benefits provision: Offering insurance and other benefits to members, as allowed under section 501(c)(8) of the Internal Revenue Code (a tax law provision exempting these societies from federal income tax), is essential to fund their charitable and fraternal community work.
- Adaptation over time: These societies have evolved since their tax exemption was established in 1909 to better meet the changing needs of members and the public.
- Continued promotion of tax exemption: The tax exemption under section 501(c)(8) provides significant societal benefits (valued at over $3.8 billion annually in charitable giving, education, volunteering, and social support), and Congress should encourage their ongoing work.
Significant Changes to Existing Law
This is a concurrent resolution, which is a formal expression of Congress's opinion and does not create, amend, or repeal any laws. It has no legal force and introduces no changes to the Internal Revenue Code or other statutes. Instead, it reinforces support for the existing tax exemption for fraternal benefit societies without altering it.
Potential Impacts
- On citizens and communities: Reinforces the role of these societies in providing financial security, charitable aid, and volunteer support to approximately 7 million members and local communities, potentially easing reliance on government programs for social services.
- On government agencies: Highlights how these organizations reduce pressure on public safety nets (like welfare or health programs) by promoting private-sector solutions, which could indirectly influence tax policy discussions at the IRS or Department of the Treasury.
- On international relations: No direct impact, as the resolution focuses solely on domestic U.S. organizations and activities.
Main Stakeholders Affected
- Fraternal benefit societies: Organizations like those operating under a chapter-based system (e.g., mutual aid groups providing insurance and community services), which benefit from affirmed congressional support for their tax status and operations.
- Members and volunteers: About 7 million individuals in local chapters who participate in and receive benefits from these societies.
- Local communities: Beneficiaries of the societies' charitable, educational, and volunteer efforts that strengthen social ties and address local needs.
- U.S. government and taxpayers: Indirectly affected through recognition of the societies' contributions, which may help justify maintaining tax exemptions and reduce public spending demands.
Notable Legal, Constitutional, or Political Implications
- Legal: As a non-binding resolution, it carries no enforceable effect but could serve as a reference in future court cases or IRS rulings involving tax-exempt status under section 501(c)(8). It underscores the long-standing congressional intent behind the 1909 exemption without challenging its constitutionality.
- Constitutional: No direct implications, as it aligns with Congress's broad authority under Article I to express opinions on policy matters and does not infringe on individual rights or federal powers.
- Political: Bipartisan sponsorship (from 20 senators across party lines) signals strong congressional consensus in support of these traditional nonprofit models, potentially influencing future tax reform debates or budget priorities by promoting private philanthropy over expanded government roles. It may encourage similar recognitions for other volunteer-based organizations.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (29)
Sen. Smith, Tina [D-MN], Sen. Grassley, Chuck [R-IA], Sen. Hickenlooper, John W. [D-CO], Sen. Risch, James E. [R-ID], Sen. Klobuchar, Amy [D-MN], Sen. Tillis, Thomas [R-NC], Sen. Durbin, Richard J. [D-IL], Sen. Cramer, Kevin [R-ND], Sen. Blumenthal, Richard [D-CT], Sen. Hoeven, John [R-ND], Sen. Baldwin, Tammy [D-WI], Sen. Daines, Steve [R-MT], Sen. Kelly, Mark [D-AZ], Sen. Lankford, James [R-OK], Sen. Merkley, Jeff [D-OR], Sen. Thune, John [R-SD], Sen. Peters, Gary C. [D-MI], Sen. Lummis, Cynthia M. [R-WY], Sen. Young, Todd [R-IN], Sen. Slotkin, Elissa [D-MI], Sen. Rounds, Mike [R-SD], Sen. Moran, Jerry [R-KS], Sen. Ricketts, Pete [R-NE], Sen. Hassan, Margaret Wood [D-NH], Sen. Cassidy, Bill [R-LA], Sen. Cortez Masto, Catherine [D-NV], Sen. Scott, Tim [R-SC], Sen. McCormick, David [R-PA], Sen. Wyden, Ron [D-OR]
Recent Actions
- 2025-01-24: Referred to the Committee on Finance. (text: CR S374)
- 2025-01-24: Submitted in Senate
Bill Versions
- Expressing 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. — issued 2025-01-24 — PDF (4 pages)