Pro Bono
Pro bono refers to a professional service dispensed on a voluntary basis either for free or at a significantly reduced cost to the recipient. Two non-profit charities — the Foundation for Financial Planning (FFP) and the Financial Planning Association (FPA) — provide pro bono financial planning to people in need. Pro bono work not only benefits the recipient but also the one providing the service, as it provides both satisfaction at having been useful, but also an opportunity for younger or less established people in a field to gain experience. The provider of a pro bono service may generally do so only to a party that is unable to afford their services. Likely recipients of pro bono services include: Individuals of limited means Charitable, community, civic, religious, governmental, or educational organizations established to primarily cater to individuals or families of limited means Immigrants and immigrant communities Nascent non-profit groups looking to further their organizational and logistical establishment, where payment of the standard fees would significantly hemorrhage or wholly deplete the organization's economic resources Numerous foundations have been established for the purpose of recruiting pro bono professionals, assisting those interested in donating their time and services for the public good. Financial planners are among those who contribute pro bono services, especially to non-profit organizations and individuals. Leading the way is the Foundation for Financial Planning (FFP), a non-profit charity dedicated to providing pro bono financial planning to people in need. For instance, the pair joined forces with national non-profit Family Reach to provide pro bono financial planning to the families of people diagnosed with cancer through The Financial Planning for Cancer program.
What Is Pro Bono?
Pro bono refers to a professional service dispensed on a voluntary basis either for free or at a significantly reduced cost to the recipient. The term pro bono is derived from the Latin phrase pro bono publico, which means "for the public good." Pro bono is mostly associated with attorneys, although is not uncommon for members of other professions, including financial planners, to offer their expertise to those with limited means free of charge.
How Pro Bono Works
The provider of a pro bono service may generally do so only to a party that is unable to afford their services. In doing so, the provider is perceived to be imparting a benefit for the greater good, rather than for the typical profit motive.
Likely recipients of pro bono services include:
Numerous foundations have been established for the purpose of recruiting pro bono professionals, assisting those interested in donating their time and services for the public good. These resource centers offer technical support and sometimes funds to help pro bono professionals cover out-of-pocket expenses such as document production, copying, and postage fees.
Example of Pro Bono
Pro bono is mainly associated with legal services, although it has become common for members of other professions to extend their expertise to people who usually would not be able to afford it. Financial planners are among those who contribute pro bono services, especially to non-profit organizations and individuals.
Leading the way is the Foundation for Financial Planning (FFP), a non-profit charity dedicated to providing pro bono financial planning to people in need. The FFP helps engage and train volunteers to participate in programs that serve financially vulnerable members of society, including wounded veterans, domestic violence survivors, and struggling single parents.
The Financial Planning Association (FPA), a U.S.-based professional organization formed in 2000 that assists members of the public to find ethical, objective, client-focused financial planners, also encourages volunteering work. In 2001, following the terrorist attacks of 9/11, a group of certified financial planners (CFPs) set up the FPA's pro bono program, targeting underserved individuals and families who are striving to build assets and improve their lives but who cannot afford to engage a planner on their own. In 2020, the FPA's pro bono program focused on those in need amid the COVID-19 pandemic.
The FPA and FFP often collaborate with each other. For instance, the pair joined forces with national non-profit Family Reach to provide pro bono financial planning to the families of people diagnosed with cancer through The Financial Planning for Cancer program.
Benefits of Pro Bono
Pro bono financial planning can empower individuals and organizations to make more responsible fiscal decisions. The advice provided by these volunteers can give those who are usually unable to afford assistance the educational support they need to become more financially literate, and the tools required to achieve financial autonomy.
Providers of these financial services also benefit. Aside from taking satisfaction from assisting people in need, pro bono work can give young professionals in the field an opportunity to nurture their professional development, helping them to hone their interviewing skills, negotiation techniques, and experience working with interpreters, among other things.
Related terms:
501(c)(3) Organization
A 501(c)(3) organization is a tax-exempt non-profit organization. Learn the requirements, costs, and pros and cons of setting up a 501(c)(3). read more
American Bankers Association (ABA)
The American Bankers Association (ABA) is the largest banking trade association in the United States, and it represents banks of all sizes. read more
Asset
An asset is a resource with economic value that an individual or corporation owns or controls with the expectation that it will provide a future benefit. read more
Certified Financial Planner (CFP)
A certified financial planner holds the certification owned and awarded by the Certified Financial Planner Board of Standards, Inc. read more
Donor-Advised Fund
A donor-advised fund is a private fund administered by a third party, created for managing charitable donations on behalf of an organization, family, or individual. read more
Energy Institute (EI)
The Energy Institute (EI), based in London, England, was formed by the 2003 merger between the Institute of Petroleum and the Institute of Energy. read more
Fiduciary
A fiduciary is a person or organization that acts on behalf of a person or persons and is legally bound to act solely in their best interests. read more
Financial Literacy
Financial literacy is the ability to understand and use various financial skills, including personal financial management, budgeting, and investing. read more
Financial Planning Association
The Financial Planning Association is a professional organization that helps members find ethical, objective, client-focused financial planners. read more
Financial Planner
A financial planner is a qualified money-management professional who helps clients meet their financial goals. read more