A potentially massive game-changer of a development is slowly and semi-quietly coming to life before our eyes that—if done right—will be huge for not only Louisiana but also Baton Rouge, writes Business Report Associate Publisher JR Ball in his new opinion piece.
What’s actually a reason for hope and excitement is the creation of a $3 billion private foundation—focusing on this state’s anchor issues—in the wake of Elevance Health’s expected acquisition later this year of Blue Cross and Blue Shield of Louisiana.
Since Blue Cross is a member-owned nonprofit there’s legally only so much that can be done with the money Elevance is paying to close the deal. One is to return money to policyholders, and some of that will happen. But the bulk of the proceeds will go to the birth of a nonprofit foundation.
The Accelerate Louisiana Initiative will not only be one of the largest private foundations of its kind in the country, but it will be the biggest in the state—by a lot. A comparison: If the Baton Rouge Area Foundation, with some $745 million in assets, and the LSU Foundation, checking in at $667 million, joined financial forces the combined $1.4 billion entity would still be less than half the size of Accelerate Louisiana.
Not only will it dwarf BRAF and the LSU Foundation, but also Accelerate Louisiana will essentially have an unrestricted endowment—meaning those making the decisions can pretty much target dollars any way they see fit, provided it aligns with the foundation’s strategic mission, Ball writes. In contrast, the bulk of BRAF’s endowment—like LSU’s and most other university foundations—is dedicated to specific purposes, outlined by the gift-giving donors.
The creation of Accelerate Louisiana ranks up there with the Louisiana Purchase in the early 1800s, the discovery of oil in our soil in the early 1900s and LSU’s hiring of Nick Saban in the early 2000s.
It’s that big of a deal.
Read Ball’s full opinion column from the latest edition of Business Report. Send comments to editor@businessreport.com.
