IRS Requirements Leads The WA State Grange Into Entering Into Agreement With American Income Life/strong>
By Tom Gwin
State Grange
Master/President
The Internal Revenue Service classifies the Grange as a 501c8 organization. Organizations in this classification are considered “Fraternal Benefit Societies”. These organizations, the Grange included, are considered nonprofit, however there are requirements to remain a nonprofit 501c8 organization. The following are the requirements as determined by IRS code as approved by Congress:
• It must have a fraternal purpose.
• It must operate under the lodge system.
• It must provide for the payment of life, sick, accident, or other benefits.
An exception applies to separately organized insurance branches of fraternal societies. These need not operate under the lodge system but must provide permissible benefits exclusively to members of a lodge system.
Fraternal Purpose
A fraternal beneficiary society … would be one whose members have adopted the same, or a very similar calling, avocation, or profession, or who are working in union to accomplish some worthy object, and who for that reason have banded themselves together as an association or society to aid and assist one another, and to promote the common cause.
Items of note:
• “Common Tie” Requires More Than Just Engaging in Social Activities.
• Fraternal Activities Must Be Substantial.
• Fraternal Activities and Benefits Must Be Primary.
• Political Activity is Not Fraternal
Our Granges easily satisfy this requirement. Our common ties can be found in our Grange manuals, with the opening and closing of our meetings. The order of business is printed in our manuals as well. As a community-based national organization, the Grange provides its members with the opportunity to lead, the opportunity to learn, and the ability to make a difference through community service, grassroots legislative advocacy and educational programs.
Operating Under the Lodge System
• Does the goal align with those of your team or organization?
Reg. 1.501(c)(8)-1 provides that a fraternal beneficiary society is exempt from tax only if it is operated under the “lodge system” or for the exclusive benefit of the members so operating. An organization is “operating under the lodge system” if it is carrying out its activities under a form of organization that comprises local branches called lodges, chapters, and the like. The local branches must be chartered by a parent organization and largely self-governing. The term “operating under the lodge system” implies, at a minimum, two active entities: a Parent and a Subordinate.
Again, this requirement is an easy check off for our Granges. With four levels, the Grange operates under the “lodge” system. Our four levels, Community/Subordinate, County or District, State, and National, ensure that the membership’s voice is heard at the appropriate place. Our membership sets the direction and activities for their Community Grange in true grassroots fashion, and those decisions seep up to the national level. Nonpartisan legislative advocacy, educational programs, service projects, and social interaction and networking are just a few of the ways local Granges serve their communities and members.
• What is the deadline for accomplishing the goal??
Payment of Benefits
To be described in IRC 501(c)(8), an organization must have an established system for the payment to its members, or their dependents, of life, sick, accident, or other benefits. Rev. Rul. 76-457, 1976-2 C.B. 155, holds that an arrangement with independent insurers whereby members, on an individual application to the insurers and not automatically by virtue of membership in the organization, may obtain insurance at reduced cost does not qualify as an established system for the payment of benefits to members. However, the organization need not itself provide for insurance benefits if a parent entity or separately organized insurance branch provides the benefits.
This requirement is the one item we have difficulty in meeting. To assist in meeting the benefits requirement, the National Grange and the Washington State Grange have both entered into an agreement with American Income Life Insurance Company to provide an Accidental Death and Dismemberment Policy for all Grange members. Subordinate Grange members are covered by this policy beginning when their membership is reported to the State Grange Office on the New Member Report Form.
Every Subordinate Grange member in our state will receive a letter from the State Grange explaining the program. The letter will include a card to name a beneficiary for your policy. Please note that naming a beneficiary is optional. If you don’t name a beneficiary, the benefit will simply be paid to your state. If you do return the beneficiary card, you will be contacted by a representative of American Income Life asking you to consider the option of purchasing additional insurance services from them.
We hope our decision to enter into the agreement with American Income Life Insurance will assist our Granges in meeting the IRS requirements to remain nonprofit 501c8 organizations by providing the required benefit to our members. Additional information on 501c8 organizations can be found on the IRS website by doing an online search.
See You In Colville!
By Jesse Taylor
Legislative Lobbyist
We have turned the page into June and with that comes the Washington State Grange Convention which is held June 26th-30th at the Northeast Washington Fairgrounds in Colville. But before we get ahead of ourselves, I want to mention that the WA State Grange is always proud to honor our fallen service men and women. Memorial Day was a great time to reflect on that and I always appreciate all of the Veterans I meet at Grange events who inevitably served with fallen soldiers. My Grandad stormed a beach in France in June of 1944 and currently rests at the Tahoma National Cemetery with many of his fallen comrades. That being said, this Holiday is important to my family as well as many of yours. I hope you got to celebrate it with friends and family.
Regional Leaders Conference
At the end of April many of us gathered in Yakima at the Regional Leaders Conference and I was able to give the group a legislative overview as well as talk about sponsorship and fundraising for our Granges. The event was well attended and I was able to talk one-on-one with many of you and I always appreciate those moments. I look forward to talking about sponsorship more at the Colville convention this month as I will be doing a similar talk at state convention as the reception to the Yakima presentation was well received.
Capital Budget
As most of you know we were able to secure just under one million dollars in capital budget grants in the 2024 supplemental budget year for local grange projects. Several Grange’s will be hearing from the department of commerce about how to access these funds. To supplement that, the Washington State Department of Commerce will be holding an informational webinar for Capital Budget Grant recipients and interested parties for next year. The webinar will take place on June 18th at 1:00PM and you can register for free at wastatecommerce.zoom.us/webinar/register
If you received a grant this year or are interested in applying for a Capital Budget Grant next year, please attend this webinar by the department of commerce. Also, if you were a 2024 recipient be on the look out for an email from me with an FAQ sheet and other important information.
H2-A Labor
On Thursday, June 6 the Department of Labor will host a public webinar to educate employers, agricultural associations, farm labor contractors, farmworkers, advocates, and other interested members of the public on the changes to the H-2A program. Participants in this webinar will learn from the Office of Foreign Labor Certification (OFLC), the Office of Workforce Investment, and the Wage and Hour Division about key aspects of this rule. You can find the registration information register for free here usdolevents.webex.com/weblink/register
National Agritourism Survey
The 2024 National Agritourism Survey is still collecting responses. Agricultural operations who have visitors for on-farm direct sales, educational programs, entertainment, farm stays, recreation, special events are encouraged to complete the survey. Please find information and a link to the survey here srdc.msstate.edu/news/2024/05/national-agritourism-survey-seeking-input-farms-welcome-visitors
I can’t wait to see you all in Colville!
By Grange News Staff
Grange members from across Washington State will be meeting at the Northeast Washington Fairgrounds in Colville for their state organization’s 135th annual convention, June 26-30. The convention returns to Colville for the first time since 2008.
The majority of those gathering at the convention site – the Northeast Washington Fairgrounds – are delegates elected to represent their local Granges. The bulk of their time will be spent in meetings, making decisions that will set the course of the organization for the coming year. Besides delegates, there are scores of volunteers who will have other responsibilities during the week, and many other members drive in to participate in special events, listen to guest speakers or simply to get together with old friends. It is anticipated that more than 500 people will either participate all week long or join in for at least a day or two.
Officiating at the business meetings will be State Grange President Tom Gwin of Humptulips Grange in Grays Harbor County.
Preparations for this year’s event have been under the direction of a district convention steering committee led by Michael Schwartz and Matt Harbin, both of Stevens County. They have been assisted by a host of volunteer sub-committee chairmen and committee members.
This year’s session is being hosted by Granges in the Easters District that includes Adams, Asotin, Benton, Columbia, Franklin, Garfield, Lincoln, Pend Oreille, Spokane, Stevens, Walla Walla, and Whitman Counties.
Prior to the official opening session on Wednesday evening, June 26, several activities will occupy delegates and others. All committees will meet prior to the session via Zoom to consider reports and resolutions submitted for delegate consideration. The committees will closely examine all resolutions referred to the convention by local community Granges. In some instances, the committees could draft additional resolutions. All those reports will be referred – with committee recommendations – to the delegate body for further debate during the session. The resolutions cover a wide variety of topics from internal organization matters to policy issues that will occupy the organization’s Olympia and Washington, DC, lobbyists in coming years.
On Wednesday morning at 10 a.m., Grangers will carpool to Douglas Falls Grange Park for a tour and history of the park. Stevens County Pomona Grange President Tom McKern will lead the tour and share the history and development of the park.
Young people (teens and above) will begin their convention activities on Wednesday morning, electing and installing their own slate of officers.
Following the opening session on Wednesday evening, the Grangers will host local dignitaries for words of welcome, followed by a welcome reception.
The work of the convention will begin in earnest at 8:30 a.m. Thursday morning when Gwin opens the session. Immediately after opening, he will deliver his annual report to the delegates. Following a short break, the delegates will begin their business session with reports from the various delegate committees. After a lunch break, the session will continue through the afternoon. Thursday evening is reserved for Grangers to enjoy dinner out, build fellowship, and to explore the area surrounding Colville.
The business session will continue Friday morning. The delegates will consider additional committee reports. The afternoon will feature the Junior Grange Ice Cream Social. Youth and Junior Members will also compete in their public speaking contests, with the winners receiving the honor of representing our state at the regional level. The delegates will continue their work through Friday afternoon.
Friday evening will feature a new activity. State Grange officers will host a Barbecue Picnic. The picnic is a ticketed event and will be followed by the live action, which financially supports Grange departments in their work.
Youth and Junior Grangers will gather at 8 a.m. on Saturday morning for their 2nd Annual Grange Livestock Judging Contest. Awards will be presented later that day at the Celebration Banquet recognizing the top individuals and Grange teams in the contest. Youth and Junior Members will also compete in their public speaking contests, with the winners receiving the honor of representing our state at the National Grange Convention in November in Bettendorf, Iowa.The members of the Yakima Valley Pomona Grange #11 are to be commended for their excellent work in preparing and conducting activities for the conference. Pomona members coordinated all the food for the weekend, including a wonderful hospitality area. They made arrangements for the tours and lined up event sponsors. They collected items for the goody bags and items for the silent auction. A huge thank you to them and the four members of their host steering committee: Tom Cullen, Pam Bright, Connie Hauver, and Glenda Tjarnberg. Their work in coordinating the efforts of more than 70 Grange members in Yakima County is appreciated by Grange members across the western region.
Business sessions will begin at 10 a.m. on Saturday. At 11 a.m. the Grange will recognize a group of military veterans at 11 a.m. on Saturday. Each veteran will be recognized with their own Quilt of Valor. The Grange and the QOV program will make the presentations. The Grange Leadership Award, the highest honor bestowed by the State Grange, will be presented at 11:45 a.m. on Saturday.
The Grange’s Fifth Degree will be exemplified on Saturday at 2:00 p.m., followed by the conferral of the Grange’s Sixth Degree at 3:00 p.m. That evening, the Grange Celebration Banquet will be held. The banquet will include the presentation of several membership awards and the recognition of the 2024 State Grange Scholarship winners. Awards for community service and membership development will be presented.
Sunday morning will begin with the Grange Memorial and Worship Service. The event, under the direction of State Grange Chaplain Carolyn Hojem, will honor departed Grange members and serve as a worship service for all members. Following the service, the Grange will go back into regular session, completing the business of the organization.
The Sunday afternoon session will be filled with presentations by the Grange youth and junior members. The young people will be recognized. Awards presented for their Grange work over the past year. Following their program, the Grange will install their newly elected State Grange Officers, followed by the completion of final business. The session is scheduled to adjourn at approximately 5 p.m. on Sunday.
There are many opportunities for fun and recreation at the convention. There is an ice cream social on Friday, youth tours and activities, banquets, workshops and, of course, the impressive Grange displays. Most members attending the convention for the first time are amazed at the large quantity and wide variety of handiwork submitted by Grangers and others across Washington state. Tables will be filled with samples of needlework, quilts, sewing, craft creations, works of art and photography. These displays are open to the public beginning Thursday afternoon. The displays are under the supervision of the state lecturer and the directors of family living, youth, junior Grange, and community service activities.
State Master Gwin urges all Grangers to consider spending at least one day at their state session. Members who live in the area are encouraged to attend any or all the events. They may also bring along their prospective member friends to the open sessions.
By Grange News Staff
Martha Stefenoni became a Grange member in 1983 joining Sebastopol Grange #306 and from there the Grange journey began. Currently she is an member of Bennett Valley Grange #16 and an affiliate of Rincon Valley Grange #710 and is currently President of Sonoma County Pomona Grange. In 1984 she and husband Tom received their 7th Degree in Portland, Maine as Martha was representing California in the Talent competition. In 1987 Tom and Martha were selected as California State Grange’s Young Couple and 1988 they were the runner-up National Grange Young Couple serving with the National Grange Young Couple, Bob and Theresa Joy. Martha has served the California State Grange in numerous positions, currently serving as a member of the Executive Committee and Membership Director.
In 2019 Martha was elected by the Assembly of Demeter to service as the Priestess Annalist and record the annual of history. She considered this to be the highlight of her Grange career until in 2022, she was given the honor as Priestess Annalist to install her son, Joseph Stefenoni as President of the California State Grange.
Tom and Martha became Grange Insurance Agents in 1984 and enjoyed working with Granges and Grangers on their insurance needs. Currently Martha works with Clouse Insurance in helping Granges with their insurance needs.
Currently Martha resides in Santa Rosa, CA.