Benefit Society - History of Benefit Societies

History of Benefit Societies

Examples of benefit societies can be found throughout history, including among secret societies of the Tang Dynasty in China and among African-Americans during the post-revolutionary years, such as those who organized the Free African Society of Philadedelphia.

Mutual aid was a foundation of social welfare in the United States until the early 20th Century. Early societies not only shared material resources, but often advanced social values related to self-reliance and moral character. Many fraternal organizations were first organized as mutual aid societies. Government on the state and local level supplemented private aid societies. In 1890, 112,000 people resided in private charitable institutions, 73,000 resided in public almshouses. Towards the latter part of the 19th century, public aid was reduced as it was seen as contributing to sloth and dependency while private aid was judiciously provided with greater checks for reform and recovery. Writing in 1890, Jacob Riis commenting on the extent of private charity says: "New York is, I firmly believe, the most charitable city in the world. Nowhere is there so eager a readiness to help ..."

Medieval guilds were an early basis for many Western benefit societies. A guild charter document from 1200 states:

"To become a gildsman,..it was necessary to pay certain initiation fees,..(and to take) an oath of fealty to the fraternity, swearing to observe its laws, to uphold its privileges, not to divulge its counsels, to obey its officers, and not to aid any non-gildsman under cover of the newly-acquired 'freedom.'" (C Gross, The Gild Merchant, (1927))

This charter shows the importance of 'brotherhood', and the principles of discipline, conviviality and benevolence. The structure of fraternity in the guild forms the basis for orders such as Freemasons, friendly societies, fraternal orders and modern trade unions. Joining such an organisation a member gained the 'freedom' of the craft; and the exclusive benefits that the organisation could confer on members.

Historically, benefit societies have emphasised the importance of social discipline, in conforming to the rules of the organisation and society, and acting in a morally uplifting and ethical manner. Conviviality and benevolence are important principles. Fraternal societies differed from public and private hierarchical aid organizations by employing an "ethical principle of reciprocity." This removed the stigma of charity.

During the eighteenth and nineteenth centuries benefit societies in the form of friendly societies and trade unions were essential in providing social assistance for sickness and unemployment, and improving social conditions for a large part of the working population. With the introduction in the early twentieth century of state social welfare programs, and industrial, health and welfare regulation, the influence and membership of benefit societies have declined in importance.

Oaths, secret signs and knowledge, and regalia were historically an important part of many benefit societies, but have declined in use during the late nineteenth and early twentieth centuries. In other cases, signs and ceremony have become the mainstay of fraternal societies that no longer focus as much on mutual aid.