The lodge system is not optional
Local chapters chartered by a parent organization, with real self-government. An organization structured as a single entity does not qualify, whatever it calls its branches.
Tax-Exempt Formation
501(c)(8) Fraternal Beneficiary Societies
A 501(c)(8) is a fraternal beneficiary society operating under the lodge system that provides life, sick, accident, or other benefits to its members and their dependants. That benefit function is what separates it from a 501(c)(10).
501(c)(8) Formation
$2,999Complete formation package • state filing fees included
- Confirmation that 501(c)(8) is the right section for you
- Name availability search
- Articles of Incorporation prepared and filed
- Purpose language drafted for 501(c)(8)
- Lodge-system and membership provisions in the bylaws
- Federal EIN (FEIN) registration
- IRS Form 1024 preparation and submission
- Conflict of interest policy template
- Responses to IRS follow-up questions
- State filing fees included
Flat fee • state filing fees included • no surprise add-ons
What a 501(c)(8) is for
Section 501(c)(8) covers fraternal beneficiary societies, orders, and associations operating under the lodge system, which provide for the payment of life, sick, accident, or other benefits to members or their dependants.
Two elements must both be present. The organization must genuinely operate through a lodge system — local branches chartered by a parent body, largely self-governing, typically with ritual and a common fraternal purpose. And it must actually provide member benefits.
The line between 501(c)(8) and 501(c)(10)
This is the decision that determines which section you file under, and it turns on one question: does the organization provide life, sick, or accident benefits to its members?
If yes, it is a 501(c)(8). If no — if earnings instead go to charitable, religious, educational, and fraternal purposes — it is a 501(c)(10). A 501(c)(10) may arrange insurance for members through an outside carrier without crossing that line; underwriting the benefit itself is what moves you into 501(c)(8).
What to Get Right at Formation
The issues that most often cause trouble later, addressed at the start.
Defining the benefit and the class
Which benefits are provided, and to which members and dependants, belongs in the governing documents at formation. Retrofitting it later means amending documents the IRS has already reviewed.
Deductibility runs one way
Gifts used exclusively for charitable purposes can be deductible. Dues and payments for member benefits are not, and members should be told which is which.
Not sure this is your section?
The (c)(8) and (c)(10) line is the one organizations most often get wrong, and correcting it after a determination letter is issued is slow. Tell us whether you intend to provide member benefits and we will tell you which section applies — before you pay for anything. Ask us first.
501(c)(8) Questions
What is the difference between 501(c)(8) and 501(c)(10)?
A 501(c)(8) provides life, sick, accident, or other benefits to its members. A 501(c)(10) does not provide those benefits and instead devotes its net earnings to charitable, religious, educational, and fraternal purposes.
Does a 501(c)(8) have to operate under the lodge system?
Yes. The organization must operate through local branches chartered by a parent body, with genuine self-government, rather than as a single undivided entity.
Are contributions to a 501(c)(8) tax-deductible?
They can be where the gift is used exclusively for charitable purposes under the applicable rules. Dues and payments for member benefits are not deductible.
Must benefits be provided to all members?
Benefits must be available to the membership class as defined in the governing documents. How that class is drafted determines who is covered and is a core part of formation.
Let’s get your organization formed correctly.
Flat fee, state filing fees included, and a clear answer on whether 501(c)(8) is the right section before any work begins.