Fraternal orders, societies and associations can apply to be tax exempt. The IRS defines a fraternal organization as one in which members have a common tie or pursue a common goal. The IRS also requires that the group be organized under a lodge system. This means a parent organization and multiple self-governed subgroups (or lodges). Qualifying fraternal organizations may or may not offer their members benefits such as life or health insurance. This depends on the section of the tax code under which they are exempt. Beneficiary fraternal organizations provide such benefits, while domestic organizations divert their earnings to charitable, fraternal or religious causes. If a group isn't eligible for exemption as a fraternal organization, it may be eligible in another category, such as a social club.