Before the advent of insurance companies and investment groups, a friendly society was a means to provide for the future and pool assets together. Believed by some to date back to burial customs of ancient Greece, friendly societies were voluntary groups that would contribute money to a general fund that could be distributed to other members in case of illness, death, or destitution. friendly societies still exist today, and can carry out a variety of functions for members, from investing to insurance to annuities.
When the world was far less global in scope, a community depended on the health and fitness of each individual. If the local dairy farmer got sick, the whole village could suffer, unable to buy milk for their children. If a husband died, leaving a wife and several children, it fell upon the village to take them in. From such desires to keep communities healthy and stable were born some of the first friendly societies. These organizations would take dues from members and dole out funds as needed. From early times, a friendly society would also sometimes feature social, religious, and political arms.
In 19th century Britain, the government applauded the friendly society ideal and registration soared throughout the country. According to some estimates, at least 27,000 different societies registered with the UK government by the end of the century. With few or no publicly available welfare programs, a friendly society was often the only source of insurance, savings, and social services for a rural population.
After state-created welfare programs were introduced, membership in friendly societies dropped. Still, many groups continued to thrive and remain vital contributors to local communities. In many areas, societies merged with lodges and orders, religious associations, and groups of affiliated workers. One of these was the Ancient Order of Foresters, formed in 1834.
Modern investing and banking has allowed friendly societies to organize and increase their offerings to members. Many now have advanced investing schemes that help member contributions grow much faster. Some offer private insurance, personal savings accounts, and single and joint annuities.
A friendly society of the 21st century is likely to offer members a full range of financial, social, and community opportunities. Many pride themselves on a continued commitment to improving social services and providing for community welfare. Many larger organizations espouse political and religious doctrines, but smaller local groups may tend to be more secular and focused on member services and good works.
