State Street Corporation, known as State Street, is a US-based international financial services holding company. State Street was founded in 1792 and is the second oldest financial institution in the United States. The company’s headquarters are at One Lincoln Street in Boston and it has offices in 25 countries around the world.
State Street is organized into three main divisions. The Global Services business is a custodian bank with $28 trillion (USD) of assets under custody and administration. The Global Advisors business provides investment management services and has $2.3 trillion (USD) of assets under management. The Global Markets business offers investment research and trading services to institutional investors.
Global Advisors is State Street’s asset management business and dates back to 1978. It provides investment management, research, and advisory services to corporations, mutual funds, insurance companies, and other institutional investors. Global Advisors develops both passive and active management strategies using both quantitative and fundamental approaches.
It created the first exchange-traded fund in 1993, the SPDR S&P 500, and is now one of the world’s largest ETF providers. Global Advisors has staff in 27 global offices and claims to have over $2.3 trillion (USD) of funds under management.
Global Markets is State Street’s securities business. It offers research, trading, and securities lending services for foreign exchange, equities, fixed income, and derivatives. The company claims to be a trading partner free from conflicted interests as it does not run proprietary trading books. Global Markets maintains trading desks in Boston, London, Sydney, Toronto, and Tokyo.
Global Services is the investment servicing division of State Street, also known as the State Street Bank & Trust Co. It provides asset owners and managers with custodian (safekeeping, corporate actions), fund accounting (pricing and valuation), and administration (financial reporting, tax, compliance, and legal) services.
Global Services handles assets from many classes, including equities, derivatives, exchange-traded funds, fixed income assets, private equity, and real estate. State Street now administers 40 percent of the assets under administration in the US mutual fund market. Global Services also provides outsourcing for operations activities and handles $10.2 trillion (USD) of middle-office assets.
For every 16 hours a State Street employee volunteers with a nonprofit organization, he or she can request a $250 grant for the organization. The original “Spotlight On State Street” article was published in August 2013. In March 2014 it was updated to reflect new program changes which include the following enhancements for 2014: Lowered minimum gift from US$50 to $25, Reduced volunteer hour requirement from 24 to 16, Eliminated one year service requirement to participate, And eliminated the $1,000 combined program cap for the DoMore & CollectMore components. And instead, instituted a $5,000 program cap for both of those components, and those $5k caps count toward an employee’s overall annual cap.
State Street is one of the nation’s oldest banks. Founded in 1792 in Boston on the corner of State Street and Exchange Street, the company now operates globally and employs over 30,000 people. Much like their worldwide financial operations, the company’s corporate giving program have evolved tremendously. A page from the corporate responsibility report reads: “Over the years, we’ve evolved from focusing on philanthropy and community investing in our headquarters city of Boston to a much broader mandate that underpins our effort to embed our strong commitment to citizenship through our global operations.”
Over the course of five years, State Streets corporate matching has grown from approximately $600,000 dollars in 2006 to over $2.1 million in 2011. That’s over a 200% increase! Part of that success is due to the company’s aggressive global expansion of their giving program. In 2007 the company began to expand the countries in which it operated its donation matching. In 2009, the company completed its European expansion before rolling out plans to expand into Asia in 2010. State Street Corporation donates to nonprofit organizations in its gift matching programs has gained a wide popularity.
Also in 2011, State Street launched their first ever Global Giving campaign. State Street employees opted to focus on education as a part of a global initiative that included not only monetary donations but also volunteering. State Street employees donated over 10,000 hours and raised $3.5 million dollars that went to charities across the globe.
State Street Nonprofit Service. State Street Corporation donates to nonprofit organizations in its gift matching programs under IRC, section 501c3 in its gift matching programs. The campaign benefited a diverse set of charities. In Asia, funds went to organizations like the Asian Women’s Welfare Association and the Zheijang Youth Development foundation. In North America, State Street contributed to organizations including the Boys & Girls Club, Pathways to Education, and United Way.
The GiveMore program is State Street’s donation matching program. In 2011, the company matched $2.17 million in donations from over 3,000 employees. With the company rapidly expanding GiveMore’s global presence, we can only expect this to grow in the future!
State Street has a tiered corporate matching program. Different levels of employees are eligible to have their contributions matched up to varying amounts. For instance, Executive VPs can have donations of up to $35,000 matched. Senior VPs can have up to a $15,000 matched, and other employees are capped at $5,000.
The DoMore program is State Street’s volunteer grant program. State Street’s DoMore program doled out $104,000 in volunteer grants in 2011, a 50% increase from the year before. If an employee volunteers for at least 24 hours, the company will donate $250 dollars for every 16 hours of work (up to a max of $5,000).
State Street’s unprecedented CollectMore program will match funds that employees raise through any fundraising effort. In 2011, State Street matched over $190,000 from employee fundraisers. While the matching funds are capped to an annual $5,000 per employee, the novel idea should be an example for other giving programs.
