CFP Board to Split Into 2 Nonprofit Groups
January 31, 2023 by Janet Levaux
The Certified Financial Planner Board of Standards says it is setting up a separate nonprofit organization to promote careers in financial planning and the public image of financial planners.
The new 501(c)(6) organization will be called CFP Board of Standards, while the existing 501(c)(3) organization will be renamed the CFP Board Center for Financial Planning — which is a program the group set up in 2015.
Click HERE to read the full story via ThinkAdvisor
Wink’s Note: I really started scratching my head, when I began reading this piece by Janet P. Levaux at ThinkAdvisor.
The CFP Board is splitting into two separate nonprofits:
– CFP Board of Standards; and
– CFP Board Center for Financial Planning?
Why? What gives?
Well, the CFP Board of Standards is a 501(c)(6). This type of nonprofit is formed to serve their members. (Think a chamber of commerce.)
On the other hand, the CFP Board Center for Financial Planning is a 501(c)(3). This type of nonprofit is created for a public service. (Think a charity.)
Kevin R. Keller, CAE‘s FAQ explained, “CFP Board will be in a better position to promote the benefits of a financial planning career and to take other actions that benefit the financial planning profession without the limitations of 501(c)(3) tax registration.”
Both nonprofits will remain under the CFP Board umbrella, and share both their CEO and Board of Directors. – sjm