A:

The term pro bono is short for the Latin "pro bono publico," which means "for the public good." The term generally refers to free services that a professional provides to poverty-stricken clients, non-profit groups or charitable organizations. In the financial world, the term applies to free services or advice provided by a financial professional.

"Pro bono" gained popularity in the legal profession, as lawyers are bound by ethical rules to charge reasonable rates for their services and to serve public interest by providing free legal services to those in need. Financial planners also dedicate pro bono services by reducing or eliminating service fees for charities, religious organizations, non-profit groups and disadvantaged individuals.

The Financial Planning Association (FPA) has positioned itself as the leading professional organization for financial advisors by putting together a hotline dedicated to National Financial Planning Week, a yearly event which advocates pro bono financial advice for groups and individuals unable to afford these services on their own.

(For more on this topic, read Using Social Finance To Produce a Better World.)

This question was answered by Steven Merkel.

RELATED FAQS
  1. Which pro forma financial statements should always be included in a business plan?

    Understand which pro forma financial statements should be included in a business plan and why a pro forma financial statement ... Read Answer >>
  2. What are the key differences between pro forma statements and GAAP statements?

    Learn the key differences between pro forma and GAAP statements. Review examples and cautionary notes about reliance on pro ... Read Answer >>
  3. What is the difference between portfolio management and financial planning?

    Understand the difference between financial planning and portfolio management, and learn which financial professionals can ... Read Answer >>
Related Articles
  1. Investing

    Pro Forma

    Pro Forma is a Latin term that means "for the sake of form." It's a term mostly used in accounting, for financial statements prepared by accountants. So why would anyone do anything for the sake ...
  2. Financial Advisor

    4 Professional Associations Advisors Should Join

    These four professional organizations are among the most respected and well known in the industry.
  3. Insights

    Has Apple Cancelled the iPhone 7 Pro? (AAPL)

    Earlier this week, Apple announced it would launch new versions of its iPhones, Apple watch and MacBook Pro on September 7. Unfortunately, there's a rumor circulating that the company may drop ...
  4. Insights

    The Pros and Cons of Being a Nonprofit

    Evaluating the tradeoffs organizations face when choosing between becoming a tax-exempt nonprofit or for-profit business with innovative ease.
  5. Investing

    Beginner's Guide To E*Trade Pro

    The robust trading platform is developed for active traders with multiple levels of analysis tools and efficient trading interfaces.
  6. Financial Advisor

    Introduction To Financial Planning Organizations

    Organizations such as the FPA and NAPFA are striving to provide higher standards for the financial planning profession and greater protection for consumers through a combination of community ...
  7. Financial Advisor

    Where to Find Non-Profit Finance Jobs

    The non-profit sector offers a stable selection of jobs for those who seek other types of fulfillment from their jobs than just purely financial.
  8. Taxes

    5 Steps To Forming A Tax-Exempt Nonprofit Corporation

    Before you tackle this challenge, know the challenges of forming and operating an official nonprofit organization.
  9. Investing

    Bass Pro Has to Be Regretting Its Cabela's Offer

    Outdoor and sporting goods retailer Bass Pro Shops made a $5.5 billion offer last month for rival Cabela's (NYSE: CAB), but after the target company reported its third-quarter results on Wednesday, ...
RELATED TERMS
  1. Pro Bono

    Professional services dispensed on a voluntary basis at no cost ...
  2. Pro Forma

    A Latin term meaning "for the sake of form". In the investing ...
  3. Quid Pro Quo

    A Latin phrase meaning "something for something". This term is ...
  4. Nonprofit Organization

    A business entity that is granted tax-exempt status by the Internal ...
  5. Pro-Rata

    Used to describe a proportionate allocation. A method of assigning ...
  6. Charitable Donation

    A gift made by an individual or an organization to a nonprofit ...
Hot Definitions
  1. Trumpcare

    The American Health Care Act, also known as Trumpcare and Ryancare, is the Republican proposal to replace Obamacare.
  2. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
  3. Portable Alpha

    A strategy in which portfolio managers separate alpha from beta by investing in securities that differ from the market index ...
  4. Run Rate

    1. How the financial performance of a company would look if you were to extrapolate current results out over a certain period ...
  5. Hard Fork

    A hard fork (or sometimes hardfork) is a radical change to the protocol that makes previously invalid blocks/transactions ...
  6. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
Trading Center