2016-08-12T12:53:41-05:00 2015-12-31 946214841 Armanino LLP 12657 Alcosta Blvd Ste 500 San Ramon CA 945834600 990 2015-01-01 942538615 Ronald McDonald House at Stanford RONA 6504706000 520 Sand Hill Road Palo Alto CA 94304 Annette Eros CEO 6504706000 2016-08-11 1 Lawrence S Kuechler P00233621 9257902600 2016-08-11 2015 2016-09-27 15:27:22Z Annette Eros 520 Sand Hill Road Palo Alto CA 94304 14418205 0 X www.rmhstanford.org X 1979 CA Ronald McDonald House is a nurturing home for critically ill children and their families. 22 21 43 3609 0 0 8688873 10911068 156513 120418 633413 505460 419422 116449 9898221 11653395 0 0 0 0 1726179 2086625 56357 0 812645 2326432 2369942 4108968 4456567 5789253 7196828 76546138 93727009 1279904 12302717 75266234 81424292 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 3136590 120418 Ronald McDonald House at Stanford (RMHS) owns and operates Ronald McDonald House (House) in Palo Alto, near Lucile Packard Children's Hospital Stanford and Stanford Medical Center. The House creates a home-away-from-home and supportive community for families of children with life-threatening illnesses receiving specialized treatment at local hospitals. The House provides temporary lodging to families of critically ill children who must leave their own community to seek medical care for their child. As a result of increased demand for its services, the House opened a new facility in 2016 directly adjacent to the existing House. See Schedule O for continuation. 3136590 1 1 0 0 0 0 0 0 0 1 1 0 0 1 1 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 43 1 1 43 1 0 0 0 0 0 1 1 0 0 0 0 X 22 21 0 0 0 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 Annette Eros Chief Executive Officer 40.00 X X 173235 0 27141 JANICE ROberts 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 NeLLIE LING Secretary 1.00 X X 0 0 0 Daniel Bernstein Director 1.00 X 0 0 0 Gregg Davis - to 012115 Director 1.00 X 0 0 0 Laurie Lacob Director 1.00 X 0 0 0 Jim McCaughey Director 1.00 X 0 0 0 Deborah Mueller - to 012115 Director 1.00 X 0 0 0 JULIA ERWIN-WEINER Director 1.00 X 0 0 0 Brad Lyman Past President 1.00 X 0 0 0 Michael Rubenstein Director 1.00 X 0 0 0 Allison Leopold Tilley Director 1.00 X 0 0 0 Mike Banic - to 012115 Director 1.00 X 0 0 0 Cynthia Lopez beverage Director 1.00 X 0 0 0 Andy Kirkpatrick Director 1.00 X 0 0 0 Melinda Litherland Director 1.00 X 0 0 0 KAREN BOYD Director 1.00 X 0 0 0 Helen Wilmot Director 1.00 X 0 0 0 Brad O'Brien DIREctor 1.00 X 0 0 0 CYNTHIA MAHOOD LEVIN DIrector 1.00 X 0 0 0 JEFF SILK Director 1.00 X 0 0 0 Denise Cote - to 012115 director 1.00 X 0 0 0 Cheryl Cheng director 1.00 X 0 0 0 Dan Francis director 1.00 X 0 0 0 Cynthia Semenoff Director of Finance 40.00 X 105766 0 16929 Laura Boudreau COO 40.00 X 134807 0 15367 JAY MCCULLOUGH Chief DEVELOPMENT OFFICER 40.00 X 131863 0 15925 545671 0 75362 4 0 1 0 Vance Brown Inc 3197 Park Blvd Palo Alto CA 94306 Construction Management 162991 Customized performance 1334 Ridder Park Dr San Jose CA 95131 Housekeeping 103103 Data Marketing Inc PO Box 519 santa clara CA 95052 Printing and mailing services 100024 3 26014 598485 10286569 1248057 10911068 Program Service Rev 624100 66645 66645 Room Donations 624100 53773 53773 120418 502582 502582 2067199 2064321 2878 2878 2878 642275 598485 616856 25419 25419 162850 83633 79217 79217 Other Income 624100 11813 11813 11813 11653395 120418 0 621909 323071 206765 45230 71076 1415831 906132 198216 311483 42321 27085 5925 9311 163175 104433 22844 35898 142227 91025 19912 31290 14799 9471 2072 3256 38539 38539 81949 81949 286870 182717 32032 72121 34475 28361 2532 3582 43596 27902 6103 9591 388388 376963 7617 3808 14316 9163 2004 3149 26862 17123 3853 5886 441509 428484 8683 4342 37623 36495 752 376 Printing and Supplies 811250 627857 11094 172299 Public Relations & News 65241 38497 7768 18976 donor engagement and ac 42847 42847 Other 32340 9614 9906 12820 9338 8503 301 534 4456567 3136590 507332 812645 X 6146228 10960895 9665411 1249327 3113312 7595922 106746 366361 40431950 6229380 17289856 34202570 17719161 16985092 22505424 22366842 76546138 93727009 641816 2736378 7473000 638088 2093339 1279904 12302717 X 25604657 33993210 40477040 38193208 9184537 9237874 75266234 81424292 76546138 93727009 7196828 -900187 -138583 0 X X 0 1 X 1 0 X 4220260 4690791 3962692 8688873 10911068 32473684 4220260 4690791 3962692 8688873 10911068 32473684 4220457 28253227 505580 566142 679367 527242 502582 2780913 6830 6493 6949 6915 11813 39000 35293597 4098362 0.80050 0.82630 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 17677407 53337 -422459 17308285 17753760 35929 987094 1099376 17677407 15782193 40957 1930610 17753760 14125710 39110 1617373 15782193 14505394 93166 -472850 14125710 0.53370 0.46630 0 0 17184762 5984078 11200684 326581 245302 81279 22920607 22920607 34202570 Lease contribution receivable related to donated rent 22366842 22366842 Accrued Expenses 2093339 2093339 X 12896687 -900187 1888009 618540 1606362 11290325 363070 363070 11653395 6738629 2026592 337419 2364011 4374618 81949 81949 4456567 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 a policy that provides the Board of Directors the discretion to spend up to 4.5% of the three year rolling average of the actual fund's value. In establishing this policy, the House considered the long-term expected return on its endowment. Accordingly, over the long term, the House expects the current spending policy to allow its endowment to grow at an average of 3% annually. This is consistent with the organization's objective to maintain the purchasing power of the endowment assets held in perpetuity as well as to provide additional real growth through new gifts and investment return. The House did not appropriate any earnings during the year ended December 31, 2015. Subsequently in January 2016, the Board of Directors appropriated $450,000 of endowment earnings for use in operations in accordance with the spending policy outlined above. Part X, Line 2: The House evaluated its current tax positions and has concluded that as of December 31, 2015, the House does not have any significant uncertain tax positions for which a reserve would be necessary. Part XI, Line 2d - Other Adjustments: Special event expense 700,489. Investment management fee -81,949. Part XI, Line 4b - Other Adjustments: Special event direct benefit costs 363,070. Part XII, Line 2d - Other Adjustments: Special Event Expense 337,419. Part XII, Line 4b - Other Adjustments: investment management fee 81,949. SCHEDULE D, PART VI, LINE 1E: Included in other Land, Buildings and Equipment is $22,873,654 of construction in progress related to the expansion of the House's facilities. House Party! Dinner Gala 765865 298500 467365 67917 71464 30500 317505 Randy Cross Invitational Golf 301190 126280 174910 24900 25400 79170 1 173705 173705 1240760 598485 642275 92817 96864 30500 396675 616856 25419 162850 50000 3700 29933 0 162850 50000 3700 29933 83633 79217 CA 1 0 1 0 1.00000 Ronald McDonald House at Stanford 520 Sand Hill Road Palo Alto CA 94304 0 NA 1 79217 1 X X X X 0 0 0 0 0 0 0 0 0 Annette Eros Chief Executive Officer 173235 0 0 0 0 0 9527 0 17614 0 200376 0 0 0 Laura Boudreau COO 134807 0 0 0 0 0 6750 0 8617 0 150174 0 0 0 X 14683 514149 Fair market value X furniture and decor 66 527438 cost of comparable g X Toys/house goods 614 192617 Cost of comparable g X Auction items 16 13853 Cost of comparable g 0 0 1 1 Part I, Column (b): Schedule M, Line 26, 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. Schedule M, Line 25 Other: Donated furniture and decor received from various donors as part of the House's expansion into it's new building. Part I, Line 32b: A broker is used to receive contributions of stock. Upon receipt the stock is liquidated. Form 990, Part III, line 4 With the addition of nine new guest rooms to the current house, the full campus increases the number of guest rooms from 47 to 123 allowing the House to serve even more children with life-threatening illnesses, and their families. Families of critically ill children age 21 and under are referred to the House by hospital social workers. The House requests only a nominal $10 per night, per family, which defrays only a small part of the actual housing cost. No family is ever turned away due to inability to pay. The House is an approved lodging facility for families covered by California Children's Services and many other State-funded and private insurance plans. The average length of stay at the House has risen dramatically as medical advances allow doctors to treat children facing critical illnesses that only decades ago were fatal. In 2015, the House provided accommodation to more than 600 families, totaling more than 16,000 guest nights. While the average length of stay for a family in 2015 was 34 days, more than 60 percent of House rooms were needed for long-term stays of 38 days or more. In order to assist families who are staying at the House for long-term stays, House volunteers staff teen and children's activity rooms, a computer lab, summer camp, and other activities. Families staying long-term require more activities, especially for young children who are far from home for long periods of time. Activities that build a strong community at the House provide therapeutic benefits to children and families and aid in the healing process. Keeping a regular routine helps families maintain a sense of normalcy while living away from home. A Home-Away-From-Home Services at the House nurture the entire family in addition to the critically ill child. Healing and personal well-being form the framework for comprehensive programming at the House. Our mission is to create an environment where adults and children feel nurtured and safe, and where offered programs enrich their lives while ameliorating the stress of complex critical treatments like open-heart surgery, kidney, lung or liver transplants, radiation, or bone marrow transplants. What a family receives when they stay at the House is much more than shelter. They also receive the empathy and support of all the other families with critically ill children residing at the House. Staff is responsible for ensuring that the guest rooms are fully utilized. More than 150 volunteers support the guests and staff at the House by providing office assistance, activity coordination, meal preparation for families, building maintenance, and supervision of children's play areas and the computer/gaming room. Additionally, the Family Support Services program provides support to families in a therapeutic environment through activities, welcome meetings and trainings. Services provided for families are what truly make this House a "home away from home, and enable family members to focus on their number one priority: caring for an ill child. Family activities provide an environment where organic and informal support groups are formed, stress levels are decreased, and small "escapes" can be enjoyed. More than 3,000 volunteers support the following programs that bring comfort and care to families during a very difficult time: Meals for Munchkins Family Album Project photo sessions Holiday events and activities Health and wellness programs (massage therapy, haircuts, spa treatments) Weekly shopping trips to area stores Additionally, 23 volunteers provide vital support for the House by serving as members of its Board of Directors, and annually, more than 75 volunteers help manage and coordinate the House's two annual major fundraising events. In 2015, volunteers donated more than 20,000 hours of time for an estimated value of over $550,000, dramatically reducing the need for hired staff. Form 990, Part III, Line 4a Other Programs Additionally, the House has two programs to serve even more families of critically ill children who are not currently staying at the House. Happy Wheels is a mobile hospitality cart that makes rounds at Lucile Packard Children's Hospital Stanford. Staffed by House volunteers, Happy Wheels provides a bit of comfort and care to parents by offering toiletries, a hot beverage or snack, or entertaining books, activities, and toys for children. The Day Pass program invites families whose children are being treated at Lucile Packard Children's Hospital Stanford to enjoy the comfort and amenities offered at the House daily from 9 a.m. to 9 p.m. Day Pass provides an opportunity for families staying in hotels or bedside to get the respite they need to help them maintain their focus on their child's health. In 2015, the House served more than 10,800 individuals through the Day Pass and Happy Wheels programs. A Well-Maintained Facility to review The House offers a trusted environment for critically ill children to stay, with the new facility specifically designed to support children with suppressed immune systems due to heart, lung, or stem cell transplants. Lucile Packard Children's Hospital Stanford doctors are more likely to discharge a patient sooner if they know the child will be staying at the House. In order to ensure a well-maintained facility, the House upholds a preventative maintenance program to keep all systems in optimal operating condition. The House has also embarked on a green initiative, replacing all its cleaning products with green alternatives, and is currently evaluating all areas to discover where additional environmentally sustaining alternatives are appropriate. Leveraging Resources Approximately $280,000 of in-kind donations of goods and services were received in 2015, covering program expenses that the charity would otherwise have to pay, as well as special gifts for families and children. Major in-kind donations include linen service, soft drinks, event tickets, donated dinners, cleaning supplies, daily newspapers, and toys and games for children and families. Also in 2015, the House partnered with the San Francisco Design Center and 48 of the area's top interior designers to create a welcoming and inviting home-away-from home in the new facility. This welcoming environment surrounds the families with comfort and relief the moment they walk in the door. The San Francisco Design Center and designers generously donated all materials and labor on this project with the House receiving over $530,000 of donated decor and furniture. In addition, the House is situated on property leased for $1.00 a year from Stanford University. The annual donated lease amount is currently valued at $1,934,008. Relying on Community Support The House receives more than 85 percent of its revenue from contributions, and relies heavily on volunteers to provide hundreds of staffing hours each week. Therefore, community support is crucial to the success of the House. Room revenue represents less than 5 percent of the total cost of housing families who stay at the House. This room revenue includes the room rate paid by families, based on their ability to pay, as well as room revenue paid by state-funded agencies, based on the eligibility of families to receive this aid. No family is ever denied accommodation due to an inability to pay. As room revenue is the only type of earned revenue received, the remaining 95-plus percent of the cost of providing housing is funded by contributions. Of the 95-plus percent raised to support the mission of the House, approximately eight percent is generated from McDonald's Corporation, its franchise owner/operators, and their local charity chapter. The remaining 87 percent of donations come from individuals, foundations, and corporations. Thanks to the overwhelming financial support and generosity of our community, we are able to offer comfort and care to families of critically ill children. Hope Has Grown In May 2016 the House opened its new 52,000 square foot facility ( the Arrillaga Family Center) directly adjacent to the existing House (The Taube Family Center). This new facility includes 67 additional private guest rooms, home-like kitchen and dining areas, comfortable living spaces, a fitness and rehabilitation facility, age-specific activity rooms, a classroom and a healing garden and retreat. In June 2016 an additional expansion began on the existing House to add nine new guest rooms and allow the two buildings to function as one cohesive campus. This Phase 2 expansion is anticipated to be completed by Spring 2017 and will allow the House to serve 123 families each night. This increased capacity will address the current demand as well as the future needs anticipated by the expansion of Lucile Packard Children's Hospital Stanford. Located only a few blocks from Lucile Packard Children's Hospital Stanford, the proximity of the House to the hospital helps families facing a medical crisis stay together as parents and medical staff are reassured that in the event of a medical emergency, the hospital is a minute away. This proximity has other real advantages as well. Recent studies indicate that the presence of a parent can cut the average length of child's hospital stay by 31 percent. Ronald McDonald House at Stanford is where Hope has a Home. Form 990 part I line 15: As part of its expansion and projected increased capacity to 123 rooms, the House began overnight awake staffing seven days a week in 2015. With more families in the House it is critical to have staff awake and available to support families at any hour of the day. Also, as part of the expansion, the Family Support Services program was launched to provide support to families in a therapeutic environment through activities, welcome meetings and trainings. Along with additional administrative support the resulting increase in salaries and benefits from these staffing additions in 2015 was approximately $360,000 for 8 full time equivalent positions. Form 990, Part VI, Section B, line 11 The Board retains the services of an independent CPA firm to review the organization's Form 990 before it is filed with the IRS. 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 2015. 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, 2015 is as follows: Noncurrent portion of contribution receivable: $61,007,986 Less: discount to net present value: (40,575,144) Noncurrent portion of contribution receivable, net: 20,432,842 Current portion of contribution receivable: 1,934,000 Net beneficial use of land: $22,366,842 Form 990, Part X, Line 24 In 2015 the House entered into a Credit Agreement with the David and Lucile Packard Foundation ("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. 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 are 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 the five year anniversary of the last principal advance. Long term debt consists of the following at December 31, 2015: Principal due $7,750,000 Less: unamortized discount (277,000) net amount $7,473,000 Form 990, Part XII, Line 2c: The process has not changed from prior year.