CFP Board to Split Into 2 Nonprofit Groups

As to why the new nonprofit is needed, the organization explained in an FAQ: “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.”

In addition, the groups says it will develop workforce programs, “including a groundbreaking new program to increase awareness of financial planning careers among college-bound students. We will be able to communicate more directly about the value the public receives from hiring a CFP professional.”

The CFP Board says it plans to spend $15 million a year on its ad campaign starting this year and will spend $3.5 million a year in workforce development over the next few years. The funds will be used to help the group achieve its goal of raising the number of U.S. CFPs to 150,000 by 2030, up from about 95,000 as of Dec. 31, 2022.

On Feb. 7, CFP Board leaders will host a webcast to discuss this news and other developments.

Recently, the organization said that the number of female certified financial planners increased to an all-time high of 22,446 in 2022 — a 4.4% gain from 21,504 in 2021 — accounting for 23.6% of all CFPs, inching up from 23.4%. In 2022, 1,519 women became CFPs, up from 1,374 in 2021, the board said, noting almost 30% of new CFPs in 2022 were women.

Meanwhile, the number of Hispanic CFP professionals grew by 10.3% to 2,710 from 2,499 in 2021, accounting for 2.9% of all CFPs (up from 2.7% in 2021). Also, the number of Black CFPs grew by 8.8% to 1,766 in 2022 from 1,652 in 2021, accounting for 1.9% of all CFPs, up from 1.8%.

(Shown in photo: Kevin Keller)