Financial Planning Association

The Financial Planning Association (FPA) is a professional organization and trade association in the United States, primarily focusing on supporting Certified Financial Planners (CFPs) and other financial planning professionals. It is the largest membership organization of its kind, with a strong presence across the country.

History

The FPA was formed from the merger of the Institute of Certified Financial Planners and the International Association for Financial Planning on January 1, 2000. The International Association for Financial Planning was founded in 1970, and the Institute of Certified Financial Planners was established in 1973 by the first graduating class of the College for Financial Planning.

Purpose and Activities

The FPA provides its members with professional development opportunities, practice management support, and advocacy for the financial planning profession. It serves as a networking platform for financial planners and allied professionals, aiming to enhance the quality and ethical standards of financial planning services.

Structure and Membership

As of 2022, the FPA had a membership of approximately 22,000 financial planning professionals. The organization operates through various chapters across the United States, offering localized support and resources to its members. The FPA of Illinois, for example, serves financial planning practitioners and allied professionals within the state of Illinois.

Tax Status

The FPA is designated as a 501(c)(6) organization, classified under business leagues, chambers of commerce, and real estate boards. This classification reflects its role in improving business conditions within the financial planning sector. Contributions to the FPA are not tax-deductible, as it is not a charitable organization.

Financial Overview

The FPA generates revenue primarily from program services, which include conferences, educational programs, and other professional development activities. The organization also derives income from investment management and other miscellaneous sources. Its expenses focus on executive compensation, salaries for other employees, and operational costs related to its mission of supporting the financial planning community.

Mission and Impact

The FPA plays a crucial role in promoting the advancement of financial planning ethics, standards, and practices. By supporting CFP professionals and fostering industry development, the FPA contributes to enhancing public trust and understanding of financial planning services. Through its chapters and national structure, the FPA ensures that financial planning professionals have the resources and support needed to provide high-quality services to clients across the United States.