American Financial Education Alliance

[jpjr]

I was looking for some local educational options we could find at colleges in the area for estate planning and came across this entity that might have some classes that might interest us just for fun. It appears their courses are short and probably pretty light on substance, but I am always interested in something to broaden my understanding. While they tout no selling of products to take the courses, I am reluctant to sign on to later be inundated by solicitations for my business. Can anyone shed some light on this organization?

Thanks

 

[njhowie]

Mixed reviews:

https://www.bogleheads.org/forum/viewtopic.php?t=154644

 

[OldShooter]

Odd sort of duck. Tax return is somewhat opaque. President is listed as only receiving $90K in compensation on $1.1M 2019 revenue, but total "Salaries and Wages" is $939K. No clue as to where all this money is going. My guess is this is one of those closely held small businesses that has set itself up as a 401(c)3.

"Did the process for determining compensation of the following persons Include a review and approval by Independent persons, comparability data, and contemporaneous substantiation of the deliberation and decIsion?" Answer to this question was "No."

"Total number of individuals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organization" Answer was left blank (not entered zero).

https://www.charitynavigator.org/ein/383844292

 

[OldShooter]

OK, looking at this thing is an excuse to avoid a boring task this morning. https://www.myafea.org/chapters is informative, listing chapters and for each chapter you can drill down to the "Chapter President" bio. Of the half-dozen bios I looked at, a slight majority seem to be strictly insurance salesmen (yes, men) and the balance are securities salesmen.

 

[njhowie]

OK, looking at this thing is an excuse to avoid a boring task this morning. https://www.myafea.org/chapters is informative, listing chapters and for each chapter you can drill down to the "Chapter President" bio. Of the half-dozen bios I looked at, a slight majority seem to be strictly insurance salesmen (yes, men) and the balance are securities salesmen.

I believe (don't quote me on it) I read or looked in to this some years ago. It operates like a franchise where the insurance or financial broker/agent/company pays some fee to AFEA and for that they get to use the AFEA name and do these seminars as a mechanism to augment their business and use it for client acquisition. I seem to remember that there was some issue with the corporate/organizational model and to get around it, when the agents do the courses/seminars they are "donating" their time. Maybe it was AFEA or some other similar organization/business, but by what you've uncovered, it sounds similar or is the same one I remember.

 

[OldShooter]

I believe (don't quote me on it) I read or looked in to this some years ago. It operates like a franchise where the insurance or financial broker/agent/company pays some fee to AFEA and for that they get to use the AFEA name and do these seminars as a mechanism to augment their business and use it for client acquisition. I seem to remember that there was some issue with the corporate/organizational model and to get around it, when the agents do the courses/seminars they are "donating" their time. Maybe it was AFEA or some other similar organization/business, but by what you've uncovered, it sounds similar or is the same one I remember.

It's probably the same guy. They list a little over half their revenue as "Membership Dues" and most of the rest as "Royalties." Your recollection also explains why there are multiple "chapters" even in some small cities. No exclusivity on territories. Like Subway.

 

[jpjr]

Thanks to all for your input. I guess if it walks like a duck and quacks like a duck it probably is a duck. I actually found the local chapter leader to be a near-by resident who evidently just so happens to sell insurance/annuity products. Who would have thunk?