It is a mutual organization or benefit society composed of a body of people who join together for a common financial or social purpose.

Before modern insurance and the welfare state, friendly societies provided financial and social services to individuals, often according to their religious, political, or trade affiliations.

Before the development of large-scale government and employer health insurance and other financial services, friendly societies played an important part in many people's lives.

In some countries, some of them developed into large mutually-run financial institutions, typically insurance companies, and lost any social and ceremonial aspect they may have had; in others they continue to have a role based on solidarity and democracy without an objective to make profit.

In other countries friendly societies have no specific legal status, which means that they have to comply to the same rules and regulations as for-profit insurance companies.

[2] In some cases, especially in America, members typically paid a regular membership fee and went to lodge meetings to take part in ceremonies.

[citation needed] Friendly societies might also organize social functions such as dances, and some had sports teams for members.

[6] In Australia, friendly societies are regulated under the Life Insurance Act 1995 (C'th)[7] and registered with APRA.

When the minister's staff examined the register, it was found that only three new societies had registered in the previous nine years, as the use of the traditional friendly society types of business had become regulated elsewhere and a 'rump', which on examination are largely public-service types, remain (mainly army, customs, gardaí, and prison officers).

Many of the others could expect to cease to trade if additional, or a normal regulatory environment was required (similar to companies, health and other business (loan organisations).