[Code of Federal Regulations]
[Title 26, Volume 7]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.501(c)(8)-1]

[Page 19]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.501(c)(8)-1  Fraternal beneficiary societies.

    (a) A fraternal beneficiary society is exempt from tax only if 
operated under the lodge system or for the exclusive benefit of the 
members so operating. Operating under the lodge system means carrying on 
its activities under a form of organization that comprises local 
branches, chartered by a parent organization and largely self-governing, 
called lodges, chapters, or the like. In order to be exempt it is also 
necessary that the society have an established system for the payment to 
its members or their dependents of life, sick, accident, or other 
benefits.

[T.D. 6500, 25 FR 11737, Nov. 26, 1960, as amended by T.D. 7061, 35 FR 
14770, Sept. 23, 1970]