Fraternal Benefit Societies Provide Large Direct and Indirect Benefits to Society

A new study released today finds that fraternal benefit societies, not-for-profit mutual aid associations created more than a century ago, continue to provide very large benefits to the communities in which they are located. The study, by Georgetown University economist Phillip Swagel, former Assistant Treasury Secretary for Economic Policy, found that the two largest societies alone — the Knights of Columbus and Thrivent Financial for Lutherans — provide more than $3.4 billion in direct and indirect benefits to communities around the country.

The Knights and Thrivent are the two largest of the 69 fraternal benefit societies that make up the National Fraternal Congress of America. The Knights have 1.3 million U.S. members, while Thrivent (formed from the 2002 merger of the Aid Association for Lutherans and the Lutheran Brotherhood) has 2.6 million members in the U.S. Total membership of all 69 member societies is over 9 million.

“The contribution of fraternal benefit societies is made possible by the unique mix of local energy and knowledge with national infrastructure and resources - a combination that could not be replaced by government programs at any level,” the report declares. “The economic and social benefits created by the system of lodge-based fraternal benefit societies include both direct economic impacts through volunteer activities and charitable giving, and indirect benefits provided by fraternal societies in supporting stronger and more cohesive communities.”

Professor Swagel draws upon “a broad range of research [that] shows that activities that enliven and deepen communities help to develop social capital, with important and quantifiable benefits for society as a whole beyond the direct impacts on the individuals involved.”

The study notes that “Thrivent and the Knights, as well as dozens of other fraternal benefit societies, have served as reservoirs and generators of social capital for over a century.” The way in which they do so, Swagel finds, is unique: “In both societies, resources from the national society support and amplify the impact of locally driven activities and charitable endeavors. This structure enables the organizations to leverage members’ energy and enthusiasm, such as when resources from the national society match fund-raising carried out at the local level. Thus, a single dollar donation or a single hour of volunteer service can be leveraged and multiplied many times over.”

The complete study is available at: http://www.nfcanet.org/Press_Room/finalswagelthriventknightsreport457pm.pdf

Key findings are here: http://www.nfcanet.org/Press_Room/keyfindingsfinal612pm.pdf