2018-11-13T18:47:29-06:00 2017-12-31 946214841 ARMANINO LLP 50 W SAN FERNANDO ST STE 500 SAN JOSE CA 95113 990 2017-01-01 942538615 RONALD MCDONALD HOUSE AT STANFORD RONA 6504706000 520 SAND HILL ROAD PALO ALTO CA 94304 ANNETTE EROS CEO 6504706000 2018-11-12 1 LAWRENCE S KUECHLER P00233621 4082006400 2018-11-12 38.111.205.16 2018-11-12 18:58:17 PS P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 C9E84E65FC58A016993E85DF0ACF82F22198071D 2017 2019-02-21 02:37:17Z ANNETTE EROS 520 SAND HILL ROAD PALO ALTO CA 94304 14736228 0 X WWW.RMHSTANFORD.ORG X 1979 CA RONALD MCDONALD HOUSE IS A NURTURING HOME FOR CRITICALLY ILL CHILDREN AND THEIR FAMILIES. 22 21 77 5272 0 0 9035875 7817179 135630 421959 361067 669523 465130 523579 9997702 9432240 0 0 0 0 2306091 2630228 0 0 1123540 3591864 4167908 5897955 6798136 4099747 2634104 91974463 94617358 5680195 3782323 86294268 90835035 X RONALD MCDONALD HOUSE AT STANFORD CREATES A HOME-AWAY-FROM-HOME AND SUPPORTIVE COMMUNITY FOR FAMILIES OF CHILDREN WITH LIFE-THREATENING ILLNESSES RECEIVING SPECIALIZED TREATMENT AT LOCAL HOSPITALS. 0 0 5240453 468371 RONALD MCDONALD HOUSE AT STANFORD (THE HOUSE) OWNS AND OPERATES THE RONALD MCDONALD HOUSE IN PALO ALTO, CA. THE HOUSE CREATES A HOME-AWAY-FROM-HOME AND SUPPORTIVE COMMUNITY FOR FAMILIES OF CHILDREN WITH LIFE-THREATENING ILLNESSES RECEIVING SPECIALIZED TREATMENT AT LUCILE PACKARD CHILDREN'S HOSPITAL STANFORD (LPCHS). SEE SCHEDULE O FOR CONTINUATION. 5240453 1 1 0 0 0 0 0 0 0 1 1 0 0 1 0 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 34 1 1 77 1 0 0 0 0 0 1 1 0 0 0 0 X 22 21 0 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 0 0 CA X X CYNTHIA SEMENOFF DIRECTOR OF FINAN 6504706009 520 SAND HILL ROAD PALO ALTO CA 94304 KAREN BOYD PRESIDENT 1.00 X X 0 0 0 SCOTT RODRICK VICE PRESIDENT 1.00 X X 0 0 0 JENNY CHANG TREASURER 1.00 X X 0 0 0 DAN FRANCIS SECRETARY 1.00 X X 0 0 0 CYNTHIA LOPEZ BEVERAGE DIRECTOR 1.00 X 0 0 0 EILEEN BOCCI CAMPBELL DIRECTOR 1.00 X 0 0 0 CHERYL CHENG DIRECTOR 1.00 X 0 0 0 JULIA ERWIN-WEINER DIRECTOR 1.00 X 0 0 0 ANNE LAWLER DIRECTOR 1.00 X 0 0 0 BRAD LYMAN DIRECTOR 1.00 X 0 0 0 MELINDA LITHERLAND DIRECTOR 1.00 X 0 0 0 CYNTHIA MAHOOD LEVIN DIRECTOR 1.00 X 0 0 0 CHRISTOPHE D MOSBY DIRECTOR 1.00 X 0 0 0 BRAD O'BRIEN DIRECTOR 1.00 X 0 0 0 RICH NAMEROW DIRECTOR - FROM 3/17 1.00 X 0 0 0 JEFF SILK DIRECTOR 1.00 X 0 0 0 HELEN WILMOT DIRECTOR 1.00 X 0 0 0 JUDI REES DIRECTOR 1.00 X 0 0 0 ANNE MCCUNE DIRECTOR 1.00 X 0 0 0 DAVID ROSENTHAL DIRECTOR - FROM 3/17 1.00 X 0 0 0 SEAN TRUESDALE DIRECTOR - FROM 3/17 1.00 X 0 0 0 ANDY KIRKPATRICK DIRECTOR - 'TIL 1/17 1.00 X 0 0 0 MICHAEL RUBENSTEIN DIRECTOR - 'TIL 1/17 1.00 X 0 0 0 DANIEL BERNSTEIN MD DIRECTOR - 'TIL 1/17 1.00 X 0 0 0 JANICE ROBERTS DIRECTOR - 'TIL 1/17 1.00 X 0 0 0 NELLIE LING DIRECTOR - 'TIL 1/17 1.00 X 0 0 0 ANNETTE EROS CHIEF EXECUTIVE OFFICER 40.00 X X 191648 0 31043 CYNTHIA SEMENOFF DIRECTOR OF FINANCE 40.00 X 122328 0 19171 LAURA BOUDREAU COO 40.00 X 149058 0 16269 JAY MCCULLOUGH CHIEF DEVELOPMENT OFFICER 40.00 X 149876 0 18243 BRIONY CARPANO SEOANE DIRECTOR PROGRAM & OPER 40.00 X 108495 0 12367 JEFFREY SCANLAN DIRECTOR STRATEGIC RELATIO 40.00 X 105277 0 6015 826682 0 103108 6 0 1 0 VANCE BROWN INC 3197 PARK BLVD PALO ALTO CA 94306 CONSTRUCTION MANAGEMENT 2750189 CUSTOMIZED PERFORMANCE 780 MONTAGUE EXPY 201 SAN JOSE CA 95131 HOUSEKEEPING SERVICES 136711 2 7164 463350 7346665 2554475 7817179 LPCH FEE 624100 172224 172224 PROGRAM SERVICE REV 624100 162209 162209 ROOM DONATIONS 624100 87526 87526 421959 417309 417309 5085166 4832952 252214 252214 252214 756603 463350 417169 339434 339434 191600 53867 137733 137733 OTHER INCOME 624100 46412 46412 46412 9432240 468371 0 1146690 364190 251291 29135 83764 1816942 1246405 144333 426204 55713 38195 4422 13096 195334 134023 15521 45790 198049 135979 15749 46321 1378 1378 44000 44000 81587 81587 436871 158530 17436 260905 47925 32905 3811 11209 67753 59619 2689 5445 115623 80762 7497 27364 446553 433066 9272 4215 5303 4629 171 503 22587 15508 1796 5283 52745 51106 1127 512 1457883 1412588 31140 14155 58141 56335 1242 564 SUPPLIES - OTHER 591279 583671 3137 4471 SUPPLIES - EXPANSION 540839 524036 11552 5251 DONOR ENGAGEMENT AND AC 157207 157207 OTHER 40234 21805 7148 11281 6798136 5240453 434143 1123540 X 4617735 6593949 4774984 2843521 163393 85099 51467661 8587979 42245820 42879682 17955773 19661563 499290 22216758 22054254 91974463 94617358 798866 492355 46968 4227000 3243000 654329 0 5680195 3782323 X 41299716 45678509 35714394 35837920 9280158 9318606 86294268 90835035 91974463 94617358 2634104 2069167 -162504 0 X X 0 1 X 1 0 X 3962692 8688873 10911068 9035875 7817179 40415687 3962692 8688873 10911068 9035875 7817179 40415687 6421206 33994481 679367 527242 502582 405718 417309 2532218 427095 1123112 816938 1152533 994615 4514293 47462198 5421497 0.71620 0.74630 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: OTHER INCOME - 2013 AMOUNT: $ 6,949. 2014 AMOUNT: $ 6,915. 2015 AMOUNT: $ 11,813. 2016 AMOUNT: $ 14,206. 2017 AMOUNT: $ 46,412. GAMING INCOME - 2013 AMOUNT: $ 194,300. 2014 AMOUNT: $ 206,260. 2015 AMOUNT: $ 162,850. 2016 AMOUNT: $ 280,850. 2017 AMOUNT: $ 191,600. EVENT INCOME - 2013 AMOUNT: $ 225,846. 2014 AMOUNT: $ 909,937. 2015 AMOUNT: $ 642,275. 2016 AMOUNT: $ 857,477. 2017 AMOUNT: $ 756,603. 18205803 38448 2719732 750000 20213983 17308285 42284 1305234 450000 18205803 17677407 53337 -422459 17308285 17753760 35929 987094 1099376 17677407 15782193 40957 1930610 17753760 0.46100 0.53900 0 0 50586585 8276275 42310310 737899 311704 426195 143177 143177 42879682 LEASE CONTRIBUTION RECEIVABLE RELATED TO DONATED RENT 22054254 22054254 X 13591536 2069167 2029195 4098362 9493174 81587 -142521 -60934 9432240 9050769 2191699 142521 2334220 6716549 81587 81587 6798136 PART V, LINE 4: THE HOUSE'S ENDOWMENT CONSISTS OF DONOR RESTRICTED FUNDS ESTABLISHED FOR THE BENEFIT OF THE HOUSE. ALL ENDOWMENT GIFTS STIPULATE THAT THE PRINCIPAL REMAIN INTACT AND THAT INVESTMENT EARNINGS BE EXPENDED ON HOUSE OPERATIONS. THE HOUSE HAS POLICIES WHICH ARE INTENDED TO MAINTAIN THE PURCHASING POWER OF THE ENDOWMENT ASSETS HELD IN PERPETUITY AS WELL AS TO MOTIVATE REAL GROWTH THROUGH NEW GIFTS. IN 2017 THE BOARD OF DIRECTORS APPROPRIATED $750,000 OF ENDOWMENT EARNINGS FOR USE IN OPERATIONS. PART X, LINE 2: THE HOUSE EVALUATED ITS CURRENT TAX POSITIONS AND HAS CONCLUDED THAT AS OF DECEMBER 31, 2017, THE HOUSE DOES NOT HAVE ANY SIGNIFICANT UNCERTAIN TAX POSITIONS FOR WHICH A RESERVE WOULD BE NECESSARY. PART XI, LINE 4B - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSE -142,521. PART XII, LINE 2D - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSE 142,521. HOUSE PARTY! DINNER GALA 722019 212317 509702 1398 57453 70623 13134 129394 INVITATIONAL GOLF TOURNAMENT 347774 100873 246901 13805 50236 49577 31549 1 150160 150160 1219953 463350 756603 15203 107689 120200 13134 160943 417169 339434 191600 27500 7199 19168 1 1.00000 191600 27500 7199 19168 53867 137733 CA 1 0 1 0 1.00000 RONALD MCDONALD HOUSE AT STANFORD 520 SAND HILL ROAD PALO ALTO CA 94304 0 NA 1 137733 X X X X 0 0 0 0 0 0 0 1 0 ANNETTE EROS CHIEF EXECUTIVE OFFICER 181648 0 10000 0 0 0 10608 0 20435 0 222691 0 0 0 LAURA BOUDREAU COO 139058 0 10000 0 0 0 7851 0 8418 0 165327 0 0 0 JAY MCCULLOUGH CHIEF DEVELOPMENT OFFICER 139876 0 10000 0 0 0 7534 0 10709 0 168119 0 0 0 PART I, LINE 7 THE ORGANIZATION PROVIDED A ONE-TIME PERFOMANCE BASED BONUS IN THE AMOUNT OF $10,000 EACH TO ANNETTE EROS, CYNTHIA SEMENOFF, LAURA BOUDREAU, JAY MCCULLOUGH, AND BRIONY CARPANO SEOANE. X 28241 2248091 FAIR MARKET VALUE X TOYS/HOUSE GOODS 570 298313 COST OF COMPARABLE G X AUCTION ITEMS 3 8071 COST OF COMPARABLE G 0 0 1 1 PART I, COLUMN (B): SCHEDULE M, LINE 25, OTHER: DONATED GOODS RECEIVED FROM VARIOUS DONORS INCLUDING TOYS AND HOUSEHOLD ITEMS UTILIZED BY THE HOUSE TO FULFILL ITS MISSION BY DEFRAYING COSTS THAT WOULD OTHERWISE BE INCURRED FOR PROGRAM SERVICES. PART I, LINE 32B: A BROKER IS USED TO RECEIVE CONTRIBUTIONS OF STOCK. UPON RECEIPT THE STOCK IS LIQUIDATED. FORM 990, PART III, LINE 4A ESTABLISHED IN 1979, THE HOUSE HAS EXPANDED SEVERAL TIMES TO MEET INCREASING DEMAND FOR FAMILY CARE SERVICES. IN JUNE 2017, THE HOUSE SUCCESSFULLY COMPLETED A FOUR-YEAR EXPANSION CAMPAIGN THAT MORE THAN DOUBLED CAPACITY AND ENHANCED VITAL FAMILY-CENTERED PROGRAMMING AND SERVICES. THE HOUSE NOW PROVIDES A COMPREHENSIVE CONTINUUM OF CARE FOR 123 FAMILIES EVERY NIGHT. TOP MEDICAL TREATMENTS ACCESSED BY FAMILIES STAYING AT THE HOUSE IN 2017 INCLUDED: CARDIOLOGY (34%), NICU (21%), HEMATOLOGY/ONCOLOGY (11%), LIVER TRANSPLANT (8%) KIDNEY TRANSPLANT (7%), PICU (5%), STEM CELL TRANSPLANT (4%), OBGYN/MATERNITY (3%), GENERAL PEDIATRICS (2%), AND LUNG TRANSPLANT (1%). THE HOUSE IS AN APPROVED FAMILY LODGING FACILITY COVERED BY CALIFORNIA CHILDREN'S SERVICES AND MANY OTHER STATE-FUNDED AND PRIVATE INSURANCE PLANS. ACCOMMODATIONS ARE AVAILABLE TO FAMILIES OF PEDIATRIC PATIENTS AGED 18 YEARS AND UNDER WHO LIVE OUTSIDE A 50-MILE RADIUS OF THE HOUSE. LPCHS SOCIAL WORK AND SELF-REFERRALS ARE ACCEPTED. THE HOUSE REQUESTS A NOMINAL FEE OF $10 PER NIGHT, BUT NO FAMILY IS TURNED AWAY DUE TO INABILITY TO PAY. IN 2017, OUR HOUSING PROGRAMS SERVED MORE THAN 1,100 FAMILIES OVERNIGHT, TOTALING NEARLY 30,000 GUEST NIGHTS. ADVANCEMENTS IN THE MANAGEMENT AND TREATMENT OF COMPLEX PEDIATRIC DIAGNOSES CONTINUE TO IMPACT DEMAND FOR LOCAL ACCOMMODATIONS AND AVERAGE LENGTHS OF FAMILY STAY; 30 PERCENT OF FAMILIES STAY LONGER THAN 60 DAYS. ADDING NINE SHORT-STAY ROOMS AND NEW HIGHER-CAPACITY ROOMS ALLOWED US TO HELP FAMILIES WE WERE PREVIOUSLY UNABLE TO SERVE. FOR EXAMPLE, ONE-NIGHT FAMILY STAYS INCREASED 17 TIMES, FROM 21 TO 354. PREVIOUSLY, WE COULD ONLY ACCOMMODATE LONG-TERM STAYS. HIGHER-CAPACITY ROOMS KEPT MORE SIBLINGS CLOSE TO THEIR PARENTS AND CRITICALLY ILL SIBLINGS, AND SPECIALIZED RESOURCES TO HELP THEM COPE WITH THE TRAUMA OF DISPLACEMENT AND MEDICAL CRISIS, INCLUDING FAMILY SUPPORT SERVICES (FSS), A NEW FULL-TIME RMH SCHOOL, DAY CAMPS, AND MORE. THE NUMBER OF SIBLINGS AT THE HOUSE TRIPLED TO 1,686. THE HOUSE PROVIDES MORE THAN BASIC ACCOMMODATIONS FOR FAMILIES DISPLACED BY THEIR CHILDREN'S MEDICAL CRISES. IT IS A COMFORTABLE, SECURE HOME FOR PARENTS, PATIENTS AND SIBLINGS TO BOND AND ENGAGE THROUGH A COMPREHENSIVE MIX OF CREATIVE AND PARTICIPATORY PROGRAMMING DESIGNED TO EASE STRESS AND ALLOW THEM TO FOCUS ON WHAT MATTERS MOST: THE HEALTH AND WELL-BEING OF THEIR CHILDREN. DAILY VOLUNTEER MEAL SERVICE, PREPARED IN A COMMERCIAL-GRADE KITCHEN AND SERVED IN THE DINING ROOMS OF BOTH BUILDINGS THROUGH THE MEGABITES PROGRAM, OFFERS OVERNIGHT AND DAY-USE FAMILIES MEANINGFUL OPPORTUNITIES TO SPEND TIME TOGETHER AND ALLEVIATES THE PRESSURES OF FOOD COSTS, PLANNING, PREPARATION, AND CLEAN-UP ON RESIDENTS. THE EXPERT MENU PLANNING GUARANTEES CONTINUOUS VARIETY, HEALTHY AND VEGETARIAN OPTIONS, MULTIPLE SIDE DISHES AND DESSERT. SINCE LAUNCHING THE PROGRAM, WE ENGAGED 122 CORPORATE AND COMMUNITY GROUPS IN OUR RESTRUCTURED MEGABITES MEAL PROGRAM; THEY PREPARED 18,300 MEALS AND DONATED $59,000 TO COVER MEAL PROGRAM COSTS - BUILDING FINANCIAL AND OPERATIONAL SUSTAINABILITY DEDICATED ACTIVITY ROOMS FOR TODDLERS, ADOLESCENTS AND TEENS OFFER CHILDREN SPACE TO PLAY AND MAKE FRIENDS TOGETHER. AN ONSITE CLASSROOM, COMPUTER LOUNGES, RECREATIONAL AND WELLNESS ACTIVITIES, AND EXTENDED SEASONAL DAY CAMPS FACILITATE FUN, LEARNING AND A SENSE OF NORMALCY FOR PATIENTS AND SIBLINGS DURING CHALLENGING TIMES. COMFORTABLE COMMON AREAS, COMMUNITY KITCHENS AND DINING ROOMS, LAUNDRY AND FITNESS FACILITIES PROVIDE PARENTS OPPORTUNITIES TO RELAX, SHARE EXPERIENCES, AND BUILD PRACTICAL ROUTINES. THERAPEUTIC SUPPORT IS AVAILABLE TO FAMILIES 24 HOURS A DAY THROUGH THE INNOVATIVE FAMILY SUPPORT SERVICES (FSS) PROGRAM, A LICENSED CLINICAL PSYCHOLOGIST SUPERVISES AND TRAINS PRE-DOCTORAL PRACTICUM STUDENTS WHO OFFER FAMILIES OPPORTUNITIES TO DEVELOP POSITIVE COPING AND COMMUNICATION SKILLS DEVELOPMENT THROUGH FAMILY WELCOME MEETINGS, WEEKLY FUN CLUBS, AND UNLIMITED INDIVIDUAL, COUPLE, FAMILY AND GROUP SESSIONS. FSS RESOURCES HELP PARENTS, PATIENTS AND SIBLINGS MANAGE STRESS, BUILD RELATIONSHIPS AND REINFORCE FAMILIAL FOUNDATIONS DURING TIMES OF CRISES. IN 2017, FSS PROVIDED WELCOME CONSULTATIONS TO 90 PERCENT OF NEW LONG-STAY FAMILIES. FSS MORE THAN DOUBLED THE NUMBER OF INDIVIDUAL FAMILY SUPPORT HOURS (TO 953) AND INCREASED COMMUNITY-BASED SUPPORT BY 58 PERCENT (TO 1,386). FSS FACILITATED 929 FUN CLUB HOURS, A 28 PERCENT INCREASE OVER 2016. EIGHTY PERCENT OF FAMILIES SURVEYED REPORTED FUN CLUBS AS IMPORTANT OR VERY IMPORTANT TO THEIR STAY AND 100 PERCENT OF FAMILIES HAD A GOOD OR VERY GOOD EXPERIENCE. ADDITIONALLY, FSS EXPANDED PARENT WORKSHOPS (30 HOURS) AND HOUSE-WIDE EVENTS (20 HOURS), INCREASES OF 257 PERCENT AND 25 PERCENT, RESPECTIVELY. FURTHERMORE, FSS PLAYED A SIGNIFICANT CAPACITY-BUILDING ROLE THROUGH SPECIALIZED STAFF AND VOLUNTEER TRAINING TO ENSURE FRONTLINE STAFF AND VOLUNTEERS HAD THE TOOLS, SUPPORT, AND PRACTICAL UNDERSTANDING TO EFFECTIVELY SERVE FAMILIES, ANTICIPATE NEEDS, AND RESPOND TO CHALLENGES. HOUSE STAFF AND VOLUNTEERS ENSURE FAMILY ROOMS AND COMMON SPACES ARE FULLY UTILIZED. MORE THAN 165 VOLUNTEERS PROVIDE DAILY SUPPORT TO HOUSE OPERATIONS, YOUTH ACTIVITIES, MEAL SERVICES AND ANNUALIZED FUNDRAISING EVENTS. MORE THAN 3,000 VOLUNTEERS PROVIDE COMFORT AND CARE TO FAMILIES THROUGHOUT THE YEAR, INCLUDING: FAMILY SUPPORT SERVICES (FSS) MEGABITES VOLUNTEER MEAL PROGRAM FAMILY ALBUM PROJECT PHOTO SESSIONS SEASONAL EVENTS AND DAY CAMPS HEALTH AND WELLNESS PROGRAMS (MASSAGE THERAPY, HAIRCUTS, SPA TREATMENTS, ETC.) TRANSPORTATION AND COORDINATION OF WEEKLY TRIPS TO LOCAL GROCERY AND RETAIL STORES IN 2017, OPERATIONS WERE SUPPORTED BY IN-HOUSE VOLUNTEERS WHO MAKE A SIX-MONTH OR LONGER VOLUNTEER COMMIT DONATED MORE THAN 23,000 HOURS OF TIME FOR AN ESTIMATED VALUE OF OVER $658,000. ADDITIONALLY, 21 COMMUNITY AND INDUSTRY LEADERS VOLUNTEER AS VALUABLE BOARD OF DIRECTORS MEMBERS. FORM 990, PART III, LINE 4A OTHER PROGRAMS THE DAY PASS PROGRAM OFFERS NO-COST HOUSE ACCESS TO FAMILIES UNABLE TO STAY OVERNIGHT DUE TO CAPACITY LIMITATIONS OR LIVE NEARBY AND DO NOT REQUIRE ACCOMMODATIONS BETWEEN 9 A.M. AND 9 P.M. DAILY. FAMILIES MAY UTILIZE HOUSE RESOURCES INCLUDING ACTIVITY ROOMS, MEAL SERVICES, SHOWERS, LAUNDRY ROOMS AND FITNESS FACILITIES. MORE THAN 1,560 INDIVIDUALS BENEFITED FROM THE DAY PASS PROGRAM IN 2017, CONSTITUTING A 30 PERCENT INCREASE OVER THE PREVIOUS YEAR. THE HAPPY WHEELS HOSPITALITY CART PROGRAM DELIVERS SNACKS, PERSONAL CARE ITEMS AND ACTIVITY KITS TO FAMILIES IN PEDIATRIC PATIENT WARDS AT LPCHS. HOUSE VOLUNTEERS OFFER REFRESHMENTS, SMALL TOYS AND INTERACTIVE GAMES TO CHILDREN AND PARENTS, PROVIDING NEEDED RELIEF AND ENTERTAINMENT TO FAMILIES WHO SPEND LONG DAYS AT THE HOSPITAL. TO DATE, MORE THAN 10,000 INDIVIDUALS HAVE BENEFITED FROM THE HAPPY WHEELS PROGRAM AND MORE THAN 50 RONALD MCDONALD HOUSES HAVE ADAPTED VERSIONS OF THIS SERVICE IN THEIR OWN MARKETS. THE EXPANSION CREATED NEW DEDICATED SPACE THAT ENABLED US TO EXPAND OUR DISTINCTIVE RONALD MCDONALD HOUSE SCHOOL FROM A PART-TIME CLASSROOM TO A FULL-TIME K-12 SCHOOL, WHERE 140 STUDENTS WERE ENROLLED IN PALO ALTO UNIFIED SCHOOL DISTRICT AND RECEIVED ONSITE EDUCATION - A NOTABLE INCREASE FROM THE 22 STUDENTS PARTICIPATING IN THE PART-TIME SCHOOL. STRENGTHENING OUR HOSPITAL PARTNERSHIP AND IMPROVING THE OPPORTUNITY FOR SIBLINGS OF CRITICALLY ILL CHILDREN TO MINIMIZE THE DISRUPTION TO THEIR EDUCATION. THE HOUSE OFFERS A TRUSTED ENVIRONMENT FOR SERIOUSLY ILL CHILDREN TO STAY. THE EXPANDED CAMPUS IS DESIGNED TO SUPPORT CHILDREN WITH IMMUNO-SUPPRESSED CONDITIONS DUE TO HEART, LUNG, OR STEM CELL TRANSPLANTS. EFFORTS TO SUSTAIN A FACILITY THAT IS DESIGNED TO ADHERE TO HOSPITAL-ADVISED INFECTION-CONTROL AND CLEANING PRACTICES AND KEEP ALL SYSTEMS IN OPTIMAL OPERATING CONDITION MAKE LPCHS PHYSICIANS MORE LIKELY TO DISCHARGE PATIENTS IF THEY KNOW THE CHILD WILL STAY AT THE HOUSE. DUE TO OPERATIONAL EFFICIENCIES, VOLUNTEER SUPPORT, AND STRONG PARTNERSHIP, EVERY CONTRIBUTED DOLLAR TRANSLATES TO $3.68 WORTH OF SUPPORT SERVICES FOR FAMILIES. APPROXIMATELY $555,000 OF IN-KIND GOODS AND SERVICES WERE DONATED TO THE HOUSE IN 2016, OFFSETTING PROGRAM EXPENSES AND OFFERING MEANINGFUL GIFTS FOR FAMILIES. IN-KIND DONATIONS INCLUDE EVENT TICKETS, CLEANING SUPPLIES, CLOTHING, GAMES, LINENS, PERSONAL HYGIENE ITEMS, MEAL SERVICES, NEWSPAPERS AND MAGAZINES, SOFT DRINKS, AND TOYS FOR RESIDENTS OF ALL AGES. RELYING ON COMMUNITY SUPPORT THE HOUSE RECEIVES MORE THAN 71 PERCENT OF ITS OPERATING REVENUE FROM PUBLIC CONTRIBUTIONS AND RELIES HEAVILY ON VOLUNTEERS TO PROVIDE HUNDREDS OF STAFFING HOURS EACH WEEK. THEREFORE, COMMUNITY SUPPORT IS CRITICAL TO OUR SUSTAINABILITY. EARNED INCOME REPRESENTS LESS THAN 6 PERCENT OF TOTAL OPERATIONAL COSTS FOR FAMILY STAYS AT THE HOUSE. THIS REVENUE INCLUDES THE NOMINAL ACCOMMODATIONS RATE (BASED ON ABILITY TO PAY) AS WELL AS REVENUE GENERATED BY STATE-FUNDED AGENCIES (BASED ON FAMILY ELIGIBILITY FOR AID). ACCOMMODATIONS REVENUE IS THE ONLY TYPE OF EARNED INCOME RECEIVED BY THE HOUSE. APPROXIMATELY 8 PERCENT OF REVENUE IS SOURCED FROM MCDONALD'S CORPORATION, ITS FRANCHISE OWNER/OPERATORS, AND THEIR LOCAL CHARITY CHAPTER. REMAINING OPERATING FUNDS COME FROM INDIVIDUALS, FOUNDATIONS, AND CORPORATIONS. EXCEPTIONAL COMMUNITY SUPPORT ALLOWS THE HOUSE TO OFFER COMFORT, CARE, AND IMPROVED ACCESS TO ESSENTIAL PEDIATRIC CARE TO SUBSTANTIALLY MORE FAMILIES EACH YEAR. KEEPING FAMILIES CLOSE EFFECTIVE JANUARY 1, 2018 THE THREE LOCAL ENTITIES, RONALD MCDONALD HOUSE AT STANFORD, RONALD MCDONALD HOUSE OF SAN FRANCISCO AND RONALD MCDONALD HOUSE CHARITES OF THE BAY AREA MERGED INTO ONE ORGANIZATION TO BETTER SUPPORT FAMILIES WITH CHILDREN RECEIVING ESSENTIAL PEDIATRIC CARE AT PARTNER HOSPITALS. THE COMBINED ENTITY WILL BE KNOWN AS RONALD MCDONALD HOUSE CHARITIES BAY AREA (RMHC BAY AREA) AND OPERATE UNDER THE RONALD MCDONALD HOUSE AT STANFORD TAX INDENTIFICATION. AS ONE ENTITY, RMHC BAY AREA WILL SUSTAIN CORE PROGRAMS THROUGH TWO RONALD MCDONALD HOUSES AND THROUGH TWO RONALD MCDONALD CARE MOBILES. ADDITIONALLY, AS A COMBINED ENTITY, RMHC BAY AREA WILL REALIZE GREATER EFFICIENCIES OVERALL AND CONTINUE EFFORTS TO ENHANCE PROGRAMS AND SERVICES THAT BENEFIT FAMILIES. RESEARCH ON FAMILY PROXIMITY DURING PEDIATRIC MEDICAL CRISES SHOWS A MEASURABLY POSITIVE CORRELATION BETWEEN TOGETHERNESS AND A PATIENT'S ABILITY TO REST AND HEAL. FURTHERMORE, THE PROMOTION OF POSITIVE COPING SKILLS IN CAREGIVERS DEMONSTRATES INCREASES IN CAPACITY TO FOCUS ON MEETING THE NEEDS OF ILL CHILDREN, THEMSELVES AND OTHER RELATIONSHIPS, IMPROVING OVERALL FAMILY FUNCTIONALITY. RONALD MCDONALD HOUSE AT STANFORD KEEPS FAMILIES CLOSE. FORM 990, PART VI, SECTION A, LINE 4 EFFECTIVE JANUARY 1, 2018, THE THREE LOCAL ENTITIES, RONALD MCDONALD HOUSE AT STANFORD, RONALD MCDONALD HOUSE OF SAN FRANCISCO, INC., AND RONALD MCDONALD HOUSE CHARITES OF THE BAY AREA, INC. MERGED INTO ONE ORGANIZATION TO BETTER SUPPORT FAMILIES WITH CHILDREN RECEIVING ESSENTIAL PEDIATRIC CARE AT PARTNER HOSPITALS. THE COMBINED ENTITY WILL BE KNOWN AS RONALD MCDONALD HOUSE CHARITIES BAY AREA ("RMHC BAY AREA") AND OPERATE UNDER THE RONALD MCDONALD HOUSE AT STANFORD TAX INDENTIFICATION. RONALD MCDONALD HOUSE AT STANFORD AMENDED ITS ARTICLES TO CHANGE THE ORGANIZATION'S NAME TO RONALD MCDONALD HOUSE CHARITIES - BAY AREA. FORM 990, PART VI, SECTION B, LINE 11B THE BOARD RETAINS THE SERVICES OF AN INDEPENDENT CPA FIRM TO PREPARE THE ORGANIZATION'S FORM 990. THE FINANCE COMMITTEE SUBSEQUENTLY REVIEWS THE FORM 990 AND APPROVES IT FOR SUBMISSION TO THE IRS. COPIES OF THE FORM 990 AND ALL RELATED SCHEDULES ARE PROVIDED TO THE BOARD OF DIRECTORS BEFORE IT IS FILED. FORM 990, PART VI, SECTION B, LINE 12C DIRECTORS, OFFICERS AND KEY EMPLOYEES ARE ANNUALLY REQUIRED TO COMPLETE A CONFLICT OF INTEREST DISCLOSURE STATEMENT AS A PRECURSOR TO THEIR SERVICE TO THE HOUSE. TO PROTECT THE INTEGRITY OF THE DECISION-MAKING PROCESS OF THE HOUSE, POTENTIAL AND ACTUAL AS WELL AS PERCEIVED CONFLICTS BETWEEN THE HOUSE AND THE INDIVIDUAL'S PERSONAL, PROFESSIONAL AND BUSINESS INTERESTS ARE TO BE DISCLOSED. POTENTIAL CONFLICTS ARE LOGGED WITH AND MONITORED BY THE SECRETARY OF THE BOARD AND REVIEWED BY A COMMITTEE OF THE BOARD. FORM 990, PART VI, SECTION B, LINE 15A THE COMPENSATION COMMITTEE, COMPOSED OF INDEPENDENT DIRECTORS AND OFFICERS OF THE HOUSE'S GOVERNING BODY, MEETS ANNUALLY TO REVIEW AND APPROVE THE COMPENSATION OF THE CHIEF EXECUTIVE OFFICER. USING INPUT FROM AN OUTSIDE COMPENSATION FIRM, THE COMMITTEE REVIEWS ANALYSIS OF SIMILARLY QUALIFIED PERSONS IN FUNCTIONALLY COMPARABLE POSITIONS AT SIMILAR ORGANIZATIONS PREPARED BY AN INDEPENDENT COMPENSATION CONSULTANT. MINUTES OF THE MEETING ARE RECORDED AND FILED. THIS PROCESS WAS LAST UNDERTAKEN FOR FISCAL 2017. FORM 990, PART VI, SECTION C, LINE 19 THE HOUSE MAINTAINS ITS ARTICLES OF INCORPORATION, BY-LAWS, CONFLICT OF INTEREST POLICY AND AUDITED FINANCIAL STATEMENTS AT ITS CURRENT LOCATION: 520 SAND HILL ROAD IN PALO ALTO, CALIFORNIA. COPIES OF THESE DOCUMENTS ARE AVAILABLE ON REQUEST FOR A NOMINAL FEE. THE MOST RECENT FORM 990 AND AUDITED FINANCIAL STATEMENTS ARE AVAILABLE ON THE HOUSE'S WEBSITE. FORM 990, PART X, LINE 15: THE HOUSE AND ITS FACILITIES ARE LOCATED ON A LEASED PARCEL OF LAND IN PALO ALTO, CALIFORNIA. THE TERMS OF THE LEASE REQUIRE AN ANNUAL RENTAL PAYMENT OF $1 THROUGH THE YEAR 2048. IN 2014, THE HOUSE RECOGNIZED AS REVENUE AND A CONTRIBUTION RECEIVABLE THE DIFFERENCE BETWEEN THE FAIR RENTAL VALUE OF THE PROPERTY AND THE PRESENT VALUE OF THE STATED AMOUNT OF THE LEASE PAYMENTS AT THE DATE OF CONTRIBUTION. THE CONTRIBUTION RECEIVABLE AS OF DECEMBER 31, 2017 IS AS FOLLOWS: NONCURRENT PORTION OF BENEFICIAL USE OF LAND: $57,139,978 LESS: DISCOUNT TO NET PRESENT VALUE: (37,019,724) NONCURRENT PORTION OF CONTRIBUTION RECEIVABLE, NET: 20,120,254 CURRENT PORTION OF BENEFICIAL USE OF LAND: 1,934,000 NET BENEFICIAL USE OF LAND: $22,054,252 FORM 990, PART X, LINE 24: IN 2015, THE HOUSE ENTERED INTO A CREDIT AGREEMENT WITH THE DAVID AND LUCILE PACKARD FOUNDATION (THE "CREDIT AGREEMENT"). THE CREDIT AGREEMENT PROVIDES FOR A TERM LOAN OF UP TO $10,000,000 TO BE USED TO BRIDGE-FINANCE PLEDGE COMMITMENTS SECURED BY THE HOUSE TO PAY COSTS FOR CONSTRUCTING THE NEW 3-STORY, 52,000 SQUARE FOOT FACILITY. BORROWINGS BEAR INTEREST AT ONE PERCENT (1%) PER YEAR. IN 2015, THE HOUSE USED A FAIR MARKET INTEREST RATE OF 3.5% TO IMPUTE DISCOUNTED INTEREST AND RECOGNIZE A $277,000 CONTRIBUTION AND RESULTING DEBT DISCOUNT. THE DISCOUNT IS BEING AMORTIZED TO INTEREST EXPENSE OVER THE TERM OF THE NOTE. DURING 2015, THE HOUSE WAS ADVANCED A TOTAL OF $8,410,000. PRINCIPAL PAYMENTS WERE SCHEDULED BASED ON THE PLEDGE COMMITMENTS SECURED BY THE HOUSE WITH PRINCIPAL AND INTEREST DUE ON NOVEMBER 1 AND MAY 1 OF EACH YEAR. ALL UNPAID ACCRUED INTEREST AND PRINCIPAL ARE DUE ON OR BEFORE OCTOBER 16, 2020. DURING 2017, THE HOUSE REPAID $2,091,000 OF THE FUNDS PREVIOUSLY ADVANCED. IN 2016, THE HOUSE ENTERED INTO A SECOND CREDIT AGREEMENT WITH THE DAVID AND LUCILE PACKARD FOUNDATION (THE "SECOND CREDIT AGREEMENT"). THE SECOND CREDIT AGREEMENT PROVIDES FOR A TERM LOAN OF UP TO $5,310,000 TO BE USED TO BRIDGE-FINANCE PLEDGE COMMITMENTS SECURED BY THE HOUSE TO PAY COSTS FOR RENOVATING AND EXPANDING THE HOUSE'S ORIGINAL FACILITY. BORROWINGS BEAR INTEREST AT ONE PERCENT (1%) PER YEAR. IN 2017, THE HOUSE USED A FAIR MARKET INTEREST RATE OF 3.5% TO IMPUTE DISCOUNTED INTEREST AND RECOGNIZE AN $81,000 CONTRIBUTION AND RESULTING DEBT DISCOUNT. THE DISCOUNT IS BEING AMORTIZED TO INTEREST EXPENSE OVER THE TERM OF THE NOTE. DURING 2017, THE HOUSE WAS ADVANCED A TOTAL OF $1,245,000. PRINCIPAL PAYMENTS WERE SCHEDULED BASED ON THE PLEDGE COMMITMENTS SECURED BY THE HOUSE WITH PRINCIPAL AND INTEREST DUE ON NOVEMBER 1 AND MAY 1 OF EACH YEAR. ALL UNPAID ACCRUED INTEREST AND PRINCIPAL ARE DUE ON OR BEFORE JANUARY 31, 2022. DURING 2017, THE HOUSE REPAID $5,000 OF THE FUNDS PREVIOUSLY ADVANCED. LONG TERM DEBT CONSISTS OF THE FOLLOWING AT DECEMBER 31, 2017: PRINCIPAL DUE $3,500,000 LESS: UNAMORTIZED DISCOUNT (257,000) NET AMOUNT $3,243,000 FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM PRIOR YEAR.