Many of us are familiar with 501(c)(3) entities, which include churches, schools, and charitable organizations. However, the ‘3’ in 501(c)(3) is just one type of not-for-profit. In fact, there are 29 different 501(c) categories.
When considering banking, many are familiar with for-profit giants like Bank of America and Wells Fargo. However, there’s another side: not-for-profit entities such as 501(c)(1) organizations, which include Federal Credit Unions like Navy Federal. These not-for-profit entities often provide members with more favorable rates and benefits, regardless of the size of their account.
Drawing a parallel to the life insurance sector, while many recognize names like State Farm and Metlife, a lesser-known category, 501(c)(8) or Fraternal Benefit Societies, exists. These are not-for-profit life insurance entities, distinct from their for-profit counterparts.
The advantage of these 501(c)(8) organizations is twofold. Firstly, without the burden of extensive advertising costs, they typically offer better rates. Secondly, members automatically get access to a range of benefits, all accessible without any additional fees.
