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.
The new CFP Board of Standards will work to “credential competent and ethical financial planners, uphold CFP certification as the recognized standard and advance the financial planning profession,” according to an announcement posted online Wednesday, written by CFP Board Chair Daniel Moisand and CEO Kevin Keller.
The CFP Board Center for Financial Planning will continue to “advance competent and ethical financial planning and expand CFP professional diversity for the benefit of the public,” the two leaders explained.
According to tax rules, the focus of 501(c)(3) organizations must be on public service, while 501(c)(6) organizations — also referred to as nonprofit membership organizations — are formed to serve their members.
Both nonprofit groups will operate under the umbrella of the CFP Board and each will have the same CEO and board of directors.
The reorganization will not affect “the CFP certification requirements or our work to set and enforce the CFP certification standards,” Moisand and Keller stated.