For many businesses, the answer to what they do can be fairly short and succinct. GM manufactures cars. Kroger is a grocery store. McDonalds is a fast food restaurant.
Everyone knows what those businesses are.
UCT is a Fraternal Benefit Society.
Most people don’t know what that means. The statement simply raises more questions, the first being – what is a Fraternal Benefit Society?
UCT and other fraternals are an unusual type of financial services company. We are non-profit through section 501(c)(8) of the Internal Revenue Code. The non-profit status results from the community service work done by our members and the financial support for that community service that comes from our financial services income. We give back to our local communities in many ways.
It is always a challenge to describe our business model in a concise way. Joe Annotti, CEO of the American Fraternal Alliance, came up with some proposed “elevator speeches” describing fraternals. You can find them on his blog.
As an example: “Fraternals unite individuals with shared values. They make a positive impact in their local communities by organizing volunteer projects and making direct financial contributions to causes and charities supported by their members. Many members choose to lead or participate in local volunteer projects that provide a helping hand to those who need it most. Participation in these activities is optional and flexible. Every member makes a difference simply by purchasing an insurance product from a fraternal, because a portion of the income from insurance sales is used to fund financial contributions to organizations and facilitate volunteer projects that reflect the shared values of the members.”
Sounds like a great business model. We’ve been around for over 125 years, so we and other fraternals would qualify as the original Social Enterprises.
Check out our website and find out more. Join us and let us help you make a difference.