Fraternity-Testvériség, 1972 (50. évfolyam, 1-12. szám)
1972-01-01 / 1-3. szám
CHALLENGES OF THE SEVENTIES By László L. Eszenyi The past fifty years brought unprecedented progress in every walks of our life. Social, political and technological revolutions shaped a new World. As a result the average American enjoys a living standard unmatched in the history of mankind. His needs and philosophical approach to life fundamentally changed. The young generation of this affluent society is less profit minded and shows more care for his less fortunate fellow-men. Leaders of fraternal organizations must closely watch the new social trends and the stricter requirements of the law. We have to meet the great challenges of the Seventies with foresight and wisdom if we want to keep fraternalism a policy-shaping force in this Country and our Federation in the continued service of our Hungarian American people. EXAMINATION OF THE INTERNAL REVENUE SERVICE TO DETERMINE ELIGIBILITY FOR TAX EXEMPTION PRESENTS THE MOST IMMINENT AND DANGEROUS CHALLENGE. Those societies which do not qualify will lose their fraternal status and their tax privileges with it. In our humble opinion there are two reasons for the sudden interest in the affairs of the non-profit organizations such as the Church groups, foundations and fraternal associations. The first and more obvious one is the eagerness of the States to replenish their treasuries so generously emptied for the welfare of not so deserving citizens. We suspect another less obvious but more subtle intention behind the move against the religious and patriotic organizations. The notorious ultraliberal block which stopped prayer in the schools and substituted it by sex education; which considers the “Old Glory” a piece of rag and patriotism a dirty word; which wishes to eliminate religious services from the Senate and the Armed Forces but is jealously safeguarding the rights of the atheists, try to decimate us and thereby lessen our religious and patriotic influence throughout the country. We cannot let them overcome if we want to live as a nation under God in a true democratic system envisioned by the founding fathers. But let’s take a look at the legal requirements. State laws define that a fraternal benefit society is one which is “organized and carried on solely for the benefit of its members and of their beneficiaries, and not for profit, operating on a lodge system and having a representative form of government which obligates itself for the payment of insurance and annuity benefits. Every such society having subordinate lodges . . . which subordinate lodges shall be required by the constitution or by-laws of such society to HOLD REGULAR MEETINGS AT LEAST ONCE IN EACH MONTH ...” We believe that this law is somewhat antiquated and should be revised. In today’s world where TV, radio and scores of other entertainment opportunities distract people from the fraternal activities in the branches, the requirement for monthly meetings of the lodges seems exaggerated and it should not be an important factor in determining eligibility for tax exempt status. It does not correspond with the basic philosophy of taxation either. A SOCIETY SHOULD BE EXEMPTED FROM TAXATION ON THE SOLE MERIT OF ITS SERVICES RENDERED TO THE MEMBERSHIP PROVIDED THAT SUCH SERVICES SATISFY NEEDS NORMALLY FINANCED FROM PUBLIC FUNDS. Care for our old folks and orphans in the Bethlen Home alone should qualify the Federation for tax exemption regardless of the number of meetings held in the branches. Would we not maintain this outstanding charitable institution by the common effort of our membership, these services would become the liability of the state welfare departments. We should use all our influence and power to change the stipulations of the law. If such endeavor would fail, we will be forced to reorganize our branch system and revitalize our fraternal life in order to survive as a fraternal organization. Rapidly growing COMPETITION IS THE OTHER MANACING PROBLEM. Our field managers are not only agents who sell insurance contracts but representatives of the Federation organizing new members. They shall explain to the prospects that our insurance and membership certificates offer excellent insurance protection as well as rights to participate in the government of the Federation. This job calls for intelligent, well- trained and highly dedicated persons who have complete faith in fraternalism and are proud of the achievements of our association. They must compete with the well trained and excellently equipped agents of the companies and the representatives of other fraternals: very formidable opponents, indeed. In order to succeed, they first must learn the basics of the insurance trade, have perfect knowledge of our contracts and be familiar with the life and customs of Magyar America. We are fortunate enough to have several such managers, but we cannot overcome the ever-growing competition unless we expand our field-force, offer lower rates, intensify our training and furnish our field-force with more 16
