Section 501(c)(eight) delivers for the tax exemption of fraternal beneficiary societies. These are organizations that happen to be operating beneath the lodge process or for the exclusive benefit of members of a fraternity that itself operates beneath the lodge process. These organizations also deliver life, accident, or other positive aspects for the members on the society or their dependents. “Operating beneath the lodge system” implies that the organization is carrying on its activities beneath a kind of organization that is created up of neighborhood branches named lodges or chapters. These neighborhood branches are chartered by a parent organization and are largely self-governing.
So, beneath this definition, if an organization does not possess a parent organization or branches underneath and does not operate beneath the lodge process, it will not qualify as a fraternal beneficiary association. A well known instance of a 501(c)(eight) organization is definitely the Knights of Columbus.
