provide members with life insurance and other financial protection benefits in accordance with state law and use the earnings to fund member-supported community activities. Fraternals are chartered by state law and have been exempt from income tax under Section 501(c)(8) of the United States Tax Code since 1909. History Fraternal Benefit Societies trace their lineage back through mutual societies, friendly societies and eventually to medieval guilds. Many fraternal benefit societies were founded to serve the needs of immigrants and other under-served groups who shared common bonds of religion, ethnicity, gender, occupation or shared values. The first modern American fraternal benefit society was the Ancient Order of United Workmen, founded by John J. Upchurch in 1868. "The Order of Knights of Pythias is a great international fraternity which was founded in Washington, DC, February 19, 1864, by Justus H. Rathbone..." The Knights had an "Endowment Rank" which included life, health and disability insurance. As Walter Bayse wrote in his history of fraternals: Structure Model Fraternal Code The Model Fraternal Code which has been adopted in some form by most states defines fraternals as follows: National Union v. Marlow The court's opinion in National Union v. Marlow is considered to be the leading judicial pronouncement of what constitutes a fraternal society. As indicated in this case, a fraternal benefit society is required to have a "common bond" among its members. Further, a society is required to specify in its laws the eligibility standards for membership, as well as classes of membership, the process of admission, and the rights and privileges of members. A fraternal benefit society is operating under a lodge system if it has a supreme governing body and subordinate lodges into which members are elected, initiated or admitted in accordance with its laws. A society has a representative form of government if its supreme governing body is an assembly composed of delegates elected directly by members or intermediate assemblies, or a board similarly elected. Fraternal benefit societies provide insurance benefits to their members including life insurance and endowments, annuities, disability, hospital, medical and nursing benefits, and such other benefits authorized for life insurers that are not inconsistent with the general fraternal laws. 21st century In the 21st century, fraternal benefit societies remain active in the United States. In addition to the mutual benefits provided to members, many fraternal benefit societies engage in charitable and volunteer efforts of lodge members in