Lwcc Foundation

## Approach & Strategy

The LWCC Foundation is a private non-operating foundation (IRS foundation code 4) based in Baton Rouge, Louisiana, at 2237 S Acadian Thruway. Established in 2019 with a ruling date of June 2021, the foundation is classified under NTEE code T20 (Philanthropy, Voluntarism & Grantmaking Foundations).

Key strategic characteristics:

• Corporate-affiliated foundation: The LWCC Foundation is affiliated with Louisiana Workers' Compensation Corporation (LWCC), a mutual insurance company and the largest workers' compensation insurer in Louisiana. The parent entity provides substantial annual contributions to fund the foundation's charitable activities.
• Early-stage foundation: With only five years of IRS filings (2019-2023), the foundation is still in its formative years. It began with a $5 million initial contribution in 2019 and has been building its asset base while gradually developing its grantmaking program.
• Asset accumulation phase: The foundation received $1-5M annually in contributions from its parent, growing assets from $5M (2019) to $6.7M (2023). This suggests the foundation is still building its endowment before scaling grantmaking.
• Minimal grantmaking to date: Grants have been sporadic — $0 in 2019 and 2022, $600K in 2020, $292K in 2021, and only $7K in 2023. This pattern suggests the foundation is still defining its grantmaking strategy.
• Zero officer compensation: No directors or officers are paid, indicating the foundation is governed by LWCC executives serving in a volunteer capacity.
• Significant administrative costs: Admin expenses of $169K-$427K annually, even in years with minimal or zero grants, suggest the foundation invests in infrastructure, professional services, or program development.

## Funding Patterns

Annual Financial Summary (2019-2023):

Trends observed:

• Erratic contribution inflows: Annual gifts from the parent entity fluctuate dramatically — from $28K (2020) to $5.1M (2019). The $2.1M in 2022 and $1.1M in 2023 suggest LWCC is resuming substantial contributions after a two-year lull.
• Volatile grantmaking: Grant distributions have been highly variable, with years of zero giving interspersed with six-figure distributions. The $7K in 2023 is puzzlingly low given $6.7M in assets.
• Administrative spending outpaces grantmaking: In 2022 and 2023, administrative expenses exceeded charitable grants by 31x and 61x respectively. This raises questions about the foundation's efficiency, though it may reflect investment in building out programs for future giving.
• No investment income: The foundation holds nearly all assets in cash or cash equivalents, with negligible dividend or investment income. This is unusual for a $6.6M foundation and suggests a non-traditional investment approach.
• Growing but underutilized asset base: At $6.7M in assets and only $7K in grants (2023), the foundation's payout rate is essentially 0.1% — far below the IRS required minimum of 5%. The large 2023 admin expenses ($427K) may count toward the distribution requirement.

## Peer Comparison

The LWCC Foundation is a corporate-affiliated private foundation in its early years. Here is how it compares to peer foundations in Louisiana and corporate foundations nationally:

Positioning:

• Dramatically lower payout: At 0.1% (2023), the LWCC Foundation's payout rate is a fraction of peer foundations (typically 5-7%). Even accounting for the admin expenses as qualifying distributions, the rate (~6.5%) is at the bare minimum.
• Early-stage justification: As a 5-year-old foundation, LWCC may still be building its strategy and team. However, peer corporate foundations typically begin meaningful grantmaking within 1-2 years of establishment.
• Corporate foundation norms: Corporate foundations typically distribute 8-12% of assets annually and align grantmaking with the parent company's CSR goals. LWCC's workers' comp focus could logically lead to workforce safety, workplace wellness, or injured worker support programs.
• Louisiana philanthropic landscape: Baton Rouge has a robust philanthropic ecosystem. The LWCC Foundation has significant room to grow its impact relative to more established local foundations.
• Administrative efficiency concern: The 61:1 admin-to-grants ratio (2023) is a significant outlier. Peer foundations typically target 10-20% admin costs relative to grants.

## Recent Activity

2023 Filing Highlights (Most Recent Available):

• Received $1,061,731 in contributions from LWCC (parent company)
• Distributed only $7,000 in charitable grants — a dramatic decline from prior years
• Administrative expenses of $426,880 — the highest on record and 61x the grant amount
• Total assets of $6,664,374 (book and fair market value are equal, suggesting all-cash holdings)
• Total revenue of $1,305,969 (primarily contributions plus some other income of $244K)
• Net increase in assets of $872,089 (revenue minus expenses)

Concerning patterns:

The 2023 filing raises several questions about the foundation's trajectory: 1. Near-zero grantmaking despite holding $6.7M in assets and receiving $1M in new contributions 2. Ballooning administrative costs that consume contributions while charitable impact is negligible 3. No investment strategy — holding $6.7M in what appears to be non-interest-bearing or low-yield accounts rather than a diversified portfolio

Possible explanations:

• The foundation may be developing a major program initiative that requires substantial upfront planning costs
• LWCC may be using the foundation to warehouse funds for a future large-scale community investment
• The high admin costs may include consulting, program design, or legal work preparatory to a significant grantmaking program
• The $7K grant may represent a pilot or test grant while the foundation refines its giving criteria

Historical context: The $600K grant in 2020 and $292K in 2021 demonstrate the foundation's capacity for meaningful grantmaking. The 2022-2023 pause may represent a strategic reset rather than an abandonment of the charitable mission.

## Application Tips

Important: The LWCC Foundation does not currently appear to accept unsolicited grant applications.

For organizations considering outreach:

1. Workers' compensation connection: LWCC (Louisiana Workers' Compensation Corporation) is Louisiana's largest workers' comp insurer. Organizations whose missions align with workplace safety, injured worker rehabilitation, workforce development, or occupational health may have a natural connection.

2. Louisiana focus: The foundation is headquartered in Baton Rouge and funded by a Louisiana-based mutual insurance company. Louisiana-serving nonprofits are the most logical grantees.

3. Patience required: With only $7K in grants in 2023, the foundation appears to be in a transition or planning phase. However, the $600K distributed in 2020 shows it has the capacity and willingness to make significant grants.

4. Corporate relationship: The most effective path to funding may be through LWCC's corporate social responsibility channels rather than the foundation directly. LWCC has a strong Louisiana employer network.

5. Contact information: The foundation is located at 2237 S Acadian Thruway, Baton Rouge, LA 70808. Note that lwcc.org is the website for the parent insurance company, not the foundation specifically.

6. Grant size expectations: Based on historical patterns, when the foundation does make grants, they can be substantial ($100K-$600K). The $7K 2023 grant was anomalous.

7. Monitor for changes: Given the foundation's growth trajectory (assets increasing from $5M to $6.7M), a significant grantmaking program may emerge. Check the foundation's future 990-PF filings for signs of a formalized giving program.

8. No formal application process identified: There is no known application form, online portal, or published guidelines. Any outreach should be professional correspondence directed to the Baton Rouge office.