|
5 WAYS TO EXPLAIN THE "FRATERNAL DIFFERENCE"
How to explain our unique model without boring the prospect (or yourself)
We asked NAFIC members: “How do you explain the 'Fraternal Difference'?”
Let’s be honest: If you try to explain our industry using tax codes and bylaws, people’s eyes glaze over. Most people don't care about the technical definition—they care about alignment. They want to know if an organization shares their values and how it operates differently than a standard commercial carrier. Here are five helpful, member-tested ways to explain who we are and why it matters.
Mission vs. Administration (Who Really Decides)
Instead of comparing "stock vs. mutual vs. fraternal," simply highlight where the decision-making power lies. It’s a distinction between a distant government or corporation and a community that shares a common bond.
“I typically explain the 3 types of insurance companies: stock, mutual, and fraternal... I explain how fraternal dollars are distributed to organizations that share a common bond with us. I finally ask: ‘Who do you feel will make decisions more in alignment with you, the federal government or Christian organizations?’”
— Terry M. King
“It’s [The Fraternal Difference is] what sets us apart. Instead of paying the government we send the money directly to the communities to help take care of the issues.”
— Butch Byers
Field Note: This helps people understand that they aren't just buying a product; they are joining a democratic organization where the members have a voice.
Highlight the Values-Based Investment Strategy
A significant differentiator for our industry is where the capital goes. While commercial carriers maximize profit, fraternal societies often apply an ethical or values-based filter to their investments.
“For us it’s the ‘Catholic Difference.’ We always say ‘We keep your money Catholic.’ We don’t work with companies that go against Catholic teaching. Most people don’t know what their money is funding on the back end.”
— Richard Vosler
“We are in a position to help Catholic families protect their loved ones without compromising their moral and religious beliefs.”
— John Ruffo
Field Note: This illustrates that we protect the member’s conscience as well as their finances. Whether you represent a religious or trade-based society, the principle of "aligned capital" is powerful.
Distinguish "Profit" from "Purpose"
Commercial companies exist to satisfy shareholders; fraternal societies exist to satisfy a mandate. By highlighting your society's founding story, you show that the claim check is a promise kept, not a corporate expense to be minimized.
“The Knights of Columbus were founded by Blessed McGivney to assist widows and orphans. We were created to pay benefits & claims. Commercial companies were created with one main objective: to make profits!”
— Stephen White
“As a member, you are a partial owner of the company.”
— Butch Byers
Field Note: Using the word "Owner" changes the dynamic. It helps the member feel like they belong to a household rather than just existing in a database.
Quantify the Collective Impact
Don't just talk about "charity" in the abstract; use the hard numbers from your society's last annual report. Show them that their single policy is a brick in a massive wall of service.
“The world would be a very different place without the good works done by the Knights of Columbus. $190,000,000 and 50,000,000 hours donated to charity. Always remember you are a part of something great!”
— Deacon Stephen Melancon
“I share the reported total fraternal dollars... as well as where the funds are being used – scholarships, local non-profit organizations they may participate in. People want to belong to something bigger than themselves!”
— Tricia Bethel
Field Note: Specificity builds legitimacy. Keep your society’s impact stats handy to show the sheer scale of the good work being done.
Illustrate the "Eyes on the Ground" Structure
The "Fraternal Difference" is most visible at the local level. Explain that the society isn't a top-down bureaucracy, but a bottom-up community.
“Our local boards, chapters, lodges, councils are our eyes on the ground to determine what the issues are in a particular community and we send the funds directly to them.”
— Butch Byers
“As agents with the Knights of Columbus, we are Brother Knights helping Brother Knights from the time of the application to the time of death.”
— John Ruffo
Field Note: If the person you are speaking with is active in their local branch, mention a specific project the society recently funded in town. It makes the concept of "fraternalism" tangible.
Thanks to all who contributed—especially those quoted:
Terry M. King, Stephen White, Joseph DeMarco, Tricia Bethel, Richard Vosler, John Ruffo, Butch Byers, and Deacon Stephen Melancon.
|