Philanthropy

Good neighbors strengthen their communities

State Farm® demonstrated its commitment to communities in 2006 by building safer, stronger and better-educated communities through volunteerism, donations and grants.

For more than 80 years, State Farm has made and kept an important promise – to always be a good neighbor. And part of being a good neighbor is being a good citizen.  Many of State Farm’s 85,000 associates helped with auto and home safety initiatives, kept commitments to neighborhood revitalization and addressed community needs and educational priorities in 2006.

State Farm’s Good Neighbor Citizenship® program was born out of the Company’s historical promise. In fact, Good Neighbor Citizenship was created to celebrate and support the nonprofit organizations, partnerships and people that make our homes and neighborhoods truly great. In 2006 alone, State Farm gave more than $54 million through donations and grants to help further the efforts of the Good Neighbor Citizenship program.

Community revitalization

The State Farm® Good Neighbor Citizenship® program also helps support several projects that promote home ownership, foster economic development and revitalize and rehabilitate communities.

For instance, the CEO of State Farm Bank®, Stan Ommen, challenged Financial Services Roundtable companies to build 50 homes in 50 states during 2006. These Community Build Day efforts resulted in 120 different events throughout the United States.

Along with the leadership and volunteerism, State Farm invested $100 million to generate a loan pool with Neighborhood Housing Services of America (NHSA) in October 2006.

The program helped thousands of traditionally under-served first-time home buyers secure mortgage loans at competitive rates. State Farm’s investment is the largest single investment NHSA has ever received from any company. The contribution demonstrates State Farm’s commitment to empower individuals and eliminate barriers to buying a home.

Education counts

Through the State Farm Companies Foundation, State Farm® supports programs that improve teacher quality, promote service-learning and improve overall effectiveness in the education system.

In 2006, State Farm announced its first-ever Youth Advisory Board (YAB).  The YAB is a group of 30 students between the ages of 17 and 20 from across the United States and Canada, charged to assist State Farm in designing and implementing a $5 million-a-year signature service learning initiative to address issues important to State Farm and communities across both countries.

“Young people must be empowered as leaders and decision-makers to address real issues and problems for communities to thrive,” said State Farm Chairman and CEO Ed Rust. “Through service-learning, young people have structured opportunities to spark change in their communities. At the same time, they are better prepared for college, work and active community involvement.”

State Farm works hard to develop leaders for tomorrow. Students in good standing who served on the YAB receive scholarships for their continued studies to post-secondary education or vocational training programs.

“Young people must be empowered as leaders and decision-makers to address real issues and problems for communities to thrive.”
Edward B. Rust Jr. – Chairman and Chief Executive Officer

Safer homes and autos

State Farm has several key partnerships that help promote
auto safety, home safety, and education within communities.

State Farm’s long-standing research and outreach collaboration with the Children’s Hospital of Philadelphia® (CHOP) has focused on how and why children are injured or killed in motor vehicle crashes.

This effort, known as Partners for Child Passenger Safety (PCPS), has provided the scientific evidence to support strengthened child restraint legislation, as well as educational tools for parents, pediatricians, and advocacy groups.

Over 455,000 State Farm® policyholders have participated in the research, involving more than 670,000 children in 16 states and Washington, D.C. PCPS is the nation’s largest child-specific crash surveillance system. 

Thanks in part to PCPS research, 37 states and the District of Columbia now have booster seat laws that cover children up to at least age 6. PCPS data and tools have been instrumental in providing state legislators the “scientific” evidence they need to get laws passed. 

Since the inception of PCPS, child occupant deaths have dropped by 15 percent.

More than 50,000 child safety and booster seats have also been inspected during State Farm’s Child Safety Day, held annually since 2001.

By leveraging the success of PCPS, State Farm also established the Young Driver Research Initiative (YDRI), which continues State Farm’s alliance with CHOP. The goal is to develop comprehensive programs for parents, teens and communities aimed at saving young lives. Insights from teens will provide the foundation for these programs.

“We feel that our alliance with the Children’s Hospital of Philadelphia and the use of the teen-centered approach will help in developing evidence-based interventions. Ultimately, the goal is to save lives and State Farm is proud to be a part of the solution,” said Laurette Stiles, Vice President Strategic Resources.

Since the inception of PCPS, child occupant deaths have dropped by 15 percent

Home safety, disaster preparedness and recovery are also top priorities for State Farm. By partnering with organizations such as The Federal Alliance for Safe Homes (FLASH), State Farm provides safety education to homebuilders, inspectors, architects and engineers concerning the need for safer, better-built homes. 

FLASH also educates consumers, legislators and insurance commissioners about disaster preparedness, and has helped hundreds of thousands of homeowners prepare for and recover from disasters.  Information from FLASH is being used throughout the country as legislatures debate building code laws and enforcement, especially in the wake of the 2004 and 2005 hurricane seasons.