Fraternal Advantage - April 2008

NFCA Fraternal Advisory Committee

The NFCA has developed membership standards as a part of its Accreditation program to assist its member-societies in improving their financial situation, solvency and governance. One of the standards deals with the fraternal character of member societies and seeks information on their fraternal activities, charitable contributions, and volunteer hours.

Fraternal benefit societies enjoy many privileges under the law including a tax exemption at federal and state levels because of their common bonds and contributions to the public good. Societies can maintain their tax-exempt status only if they deliver on their missions and common bonds.

So, the question becomes: How the NFCA can assist its member-societies in improving the quality and quantity of their fraternal good works?

To respond to that question the NFCA Board of Directors established an ad hoc committee, known as the Fraternal Advisory Committee, to conduct some “self-critical analysis” on the fraternal work being done by member-societies. What is quality work? What is not? Are there “non-profit” measures, which can be brought to the NFCA and its members, similar to the Tillinghast ratios on the financial side? Are there better measures for the value of fraternalism?

The charge of this committee is to improve the substance of what the NFCA and its member-societies consider adequate fraternal works and verifiable measurements. The committee may explore other non-profit associations and charities for best practices. Its ultimate goal being a more substantive fraternal character measure for the Membership Accreditation program.

Interested in adding value by participating in the work of this committee? If so, please contact Bob Huxel, Director of Government Affairs.


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