2015-09-30T19:32:12-05:00 2014-12-31 946214841 ARMANINO LLP 12657 ALCOSTA BOULEVARD SUITE 500 SAN RAMON CA 945834600 990 2014-01-01 942538615 RONALD MCDONALD HOUSE AT STANFORD RONA 6504706000 520 SAND HILL ROAD PALO ALTO CA 94304 ANNETTE EROS CEO 6504706000 2015-09-08 1 LYNN HENLEY P00356034 9257902600 2014 2016-03-07 17:11:31Z ANNETTE EROS 520 SAND HILL ROAD PALO ALTO CA 94304 16626626 0 X WWW.RONALDHOUSE.NET X 1979 CA RONALD MCDONALD HOUSE IS A NURTURING HOME FOR CRITICALLY ILL CHILDREN AND THEIR FAMILIES. 23 22 36 303 0 0 3962693 8688873 158979 156513 693866 633413 56488 419422 4872026 9898221 0 0 0 0 1540691 1726179 101201 56357 861619 1815855 2326432 3457747 4108968 1414279 5789253 49006996 76546138 507443 1279904 48499553 75266234 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 2796152 156513 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. THE HOUSE CAN ACCOMMODATE 47 FAMILIES PER NIGHT. AS A RESULT OF INCREASED DEMAND FOR ITS SERVICES, THE HOUSE IS UNDERGOING AN EXPANSION OF ITS FACILITIES. SEE SCHEDULE O FOR CONTINUATION. 2796152 1 1 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 0 0 0 0 0 0 1 1 1 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 38 1 1 36 1 0 0 0 0 0 1 1 0 0 0 0 X 23 22 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 0 0 CA X CYNTHIA SEMENOFF DIRECTOR OF FINAN 6504706009 520 SAND HILL ROAD PALO ALTO CA 94304 ANNETTE EROS CHIEF EXECUTIVE OFFICER 40.00 X X 169467 0 20717 JANICE ROBERTS PRESIDENT 1.00 X X 0 0 0 DENISE COTE VICE PRESIDENT 1.00 X X 0 0 0 JENNY CHANG TREASURER 1.00 X X 0 0 0 BRAD O'BRIEN SECRETARY 1.00 X X 0 0 0 DANIEL BERNSTEIN DIRECTOR 1.00 X 0 0 0 GREGG DAVIS 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 DIRECTOR 1.00 X 0 0 0 JULIA ERWIN-WEINER DIRECTOR 1.00 X 0 0 0 SCOTT RODRICK DIRECTOR 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 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 NELLIE LING 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 CYNTHIA SEMENOFF DIRECTOR OF FINANCE 40.00 X 104026 0 13575 LAURA BOUDREAU COO 40.00 X 128940 0 14524 JAY MCCULLOUGH DEVELOPMENT OFFICER 40.00 X 127405 0 11568 529838 0 60384 4 0 1 0 VANCE BROWN INC 3197 PARK BLVD PALO ALTO CA 94306 CONSTRUCTION MANAGEMENT 3804160 ARBORWORKS 3270 S BRIDGEPOINTE LANE DUBLIN CA 94568 ARBORIST 179250 CUSTOMIZED PERFORMANCE 1334 RIDDER PARK DR SAN JOSE CA 95131 HOUSEKEEPING 138537 3 10714 675225 8002934 1255948 8688873 PROGRAM SERVICE REV 624100 93105 93105 ROOM DONATIONS 624100 63408 63408 156513 527242 527242 6130886 6024715 106171 106171 106171 909937 675225 624921 285016 285016 206260 78769 127491 127491 OTHER INCOME 624100 6915 6915 6915 9898221 156513 0 1052835 307784 196982 43090 67712 1151827 737169 161256 253402 36077 23089 5051 7937 119858 76709 16780 26369 110633 70805 15489 24339 38045 38045 56357 56357 90058 90058 388778 186158 25291 177329 21354 15629 2277 3448 38528 24658 8476 5394 447429 434995 8289 4145 23487 15032 3288 5167 430480 417565 8610 4305 34647 33608 693 346 PRINTING AND SUPPLIES 609715 486895 3683 119137 OTHER 105540 11837 7435 86268 PUBLIC RELATIONS & NEWS 90197 57726 12628 19843 TAXES AND FEES 8174 7295 758 121 4108968 2796152 451197 861619 4154915 6146228 10833697 9665411 1508329 3113312 32806 106746 23572076 6282220 12706568 17289856 17809940 17719161 1960741 22505424 49006996 76546138 387922 641816 119521 638088 507443 1279904 X 19703359 25604657 19647586 40477040 9148608 9184537 48499553 75266234 49006996 76546138 5789253 381622 20595806 0 X X 0 1 X 1 0 X 4272615 4220260 4690791 3962692 8688873 25835231 4272615 4220260 4690791 3962692 8688873 25835231 2187425 23647806 471034 505580 566142 679367 527242 2749365 6651 6830 6493 6949 6915 33838 28618434 3818517 0.82630 0.75020 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 17753760 35929 987094 1099376 17677407 15782193 40957 1930610 17753760 14125710 39110 1617373 15782193 14505394 93166 -472850 14125710 13551759 39844 1526931 613140 14505394 0.51960 0.48040 0 0 17184762 5570395 11614367 753922 711825 42097 5633392 5633392 17289856 LEASE CONTRIBUTION RECEIVABLE RELATED TO DONATED RENT 22505424 22505424 ACCRUED EXPENSES 638088 638088 X 32114784 381622 21672721 703691 22758034 9356750 90058 451413 541471 9898221 5348103 1076915 703691 1780606 3567497 90058 451413 541471 4108968 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 BOARD OF DIRECTORS ALSO CONSIDERS THE GUIDANCE OF THE UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT ("UPMIFA") IN DETERMINING THE ANNUAL SPENDING ALLOCATION WHICH PROVIDES A PRUDENT SPENDING ALLOCATION OF UP TO 7% OF THE PRIOR THREE YEAR AVERAGE. DURING 2014, THE BOARD OF DIRECTORS APPROPRIATED $1,099,376 REPRESENTING 7% OF THE PRIOR THREE YEAR AVERAGE, FOR EXPENDITURE RELATED TO EXPANDED OPERATIONS. PART X, LINE 2: THE HOUSE EVALUATED ITS CURRENT TAX POSITIONS AND HAS CONCLUDED THAT AS OF DECEMBER 31, 2014, 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 703,691. PART XI, LINE 4B - OTHER ADJUSTMENTS: SPECIAL EVENT DIRECT BENEFIT COSTS 451,413. PART XII, LINE 2D - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSE 703,691. PART XII, LINE 4B - OTHER ADJUSTMENTS: SPECIAL EVENT DIRECT BENEFIT COSTS 451,413. SCHEDULE D, PART VI, LINE 1E: INCLUDED IN OTHER LAND, BUILDINGS AND EQUIPMENT IS $5,576,439 OF CONSTRUCTION IN PROGRESS RELATED TO THE EXPANSION OF THE HOUSE'S FACILITIES. X X X X 1 CAMPBELL & COMPANY ONE EAST WACKER DRIVE SUITE 3350 CHICAGO IL 60601 CAPITAL CAMPAIGN FOR EXPANSION 0 5750645 56357 5694288 5750645 56357 5694288 CA HOUSE PARTY! DINNER GALA 1030407 351970 678437 81032 75044 66842 207480 RANDY CROSS INVITATIONAL GOLF 409719 178219 231500 65017 40908 37131 0 51467 1 145036 145036 1585162 675225 909937 65017 121940 112175 66842 258947 624921 285016 206260 50000 2024 26745 1 1.00000 206260 50000 2024 26745 78769 127491 CA 1 0 1 0 1.00000 RONALD MCDONALD HOUSE AT STANFORD 520 SAND HILL ROAD PALO ALTO CA 94304 0 1 127491 SCHEDULE G, PART III: THE ANNUAL GALA AND GOLF INVITATIONAL ARE THE TWO MAJOR FUNDRAISING EVENTS WHICH ARE HELD ANNUALLY ALONG WITH VARIOUS OTHER SPECIAL EVENTS. INCLUDED AS PART OF THE GOLF INVITATIONAL IS A RAFFLE DRAWING ON THE DAY OF EVENT. IN 2014 TOTAL PROCEEDS FROM SPECIAL EVENTS AND THE RAFFLE WERE $1,791,422 AND ASSOCIATED EXPENSES WERE $703,690 RESULTING IN NET PROCEEDS OF $1,087,732 FOR THE PERIOD. 1 X X X X 0 0 0 0 0 0 0 0 0 ANNETTE EROS CHIEF EXECUTIVE OFFICER 169467 0 0 0 0 0 9267 0 11450 0 190184 0 0 0 X 26829 830356 FAIR MARKET VALUE X TOYS/HOUSE GOODS 312 367117 COST OF COMPARABLE G X AUCTION ITEMS 4 58475 COST OF COMPARABLE G 0 0 1 1 PART I, LINE 32B: A BROKER IS USED TO RECEIVE CONTRIBUTIONS OF STOCK. UPON RECEIPT THE STOCK IS LIQUIDATED. 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. FORM 990, PART III, LINE 4 THE NEW FACILITY WILL BE BUILT ADJACENT TO THE EXISTING HOUSE AND WILL INCREASE THE NUMBER OF FAMILY ROOMS FROM 47 TO OVER 120 ALLOWING THE HOUSE TO SERVE EVEN MORE CHILDREN WITH LIFE-THREATENING ILLNESSES, AND THEIR FAMILIES. THIS ADDITION IS ANTICIPATED TO BE COMPLETED IN 2016. 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 2014, THE HOUSE PROVIDED ACCOMMODATION TO MORE THAN 830 FAMILIES, TOTALING MORE THAN 16,000 GUEST NIGHTS. WHILE THE AVERAGE LENGTH OF STAY FOR A FAMILY IN 2014 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 47 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. IN 2014, THE FAMILY SUPPORT SERVICES PROGRAM WAS ADDED PROVIDING 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 200 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 275 VOLUNTEERS HELP MANAGE AND COORDINATE THE HOUSE'S TWO ANNUAL MAJOR FUNDRAISING EVENTS. IN 2014, VOLUNTEERS DONATED MORE THAN 22,000 HOURS OF TIME FOR AN ESTIMATED VALUE OF OVER $580,000, DRAMATICALLY REDUCING THE NEED FOR HIRED STAFF. 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 2014, THE HOUSE SERVED MORE THAN 11,600 INDIVIDUALS THROUGH THE DAY PASS AND HAPPY WHEELS PROGRAMS. A WELL-MAINTAINED FACILITY THE HOUSE OFFERS A TRUSTED ENVIRONMENT FOR CRITICALLY ILL CHILDREN TO STAY INCLUDING TWO WINGS SPECIFICALLY DESIGNED FOR 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 $480,000 OF IN-KIND DONATIONS OF GOODS AND SERVICES WERE RECEIVED IN 2014, 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. 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 $939,352. ADDITIONALLY, APPROXIMATELY $130,000 OF IN-KIND GOODS AND SERVICES WERE RECEIVED FOR FUNDRAISING THROUGH TWO MAJOR ANNUAL EVENTS, THUS MINIMIZING THE COST OF PRODUCING THE EVENTS. THESE FUNDRAISING EVENTS ARE DESIGNED TO BEST UTILIZE THESE GIFTS TO RAISE MUCH NEEDED CASH. 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 7 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 93-PLUS PERCENT OF THE COST OF PROVIDING HOUSING IS FUNDED BY CONTRIBUTIONS. OF THE 93-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 85 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. LOOKING TOWARD THE FUTURE THE AVERAGE LENGTH OF STAY FOR FAMILIES AT THE HOUSE HAS INCREASED BY NEARLY 500 PERCENT SINCE THE LAST EXPANSION WAS COMPLETED IN 2003, AND THE AVERAGE NUMBER OF FAMILIES ON THE WAITING LIST FOR A ROOM AT THE HOUSE EVERY NIGHT AVERAGES 40 TO 50. THE HOUSE IS CURRENTLY UNDERGOING AN EXPANSION TO THE EXISTING HOUSE TO PROVIDE A LARGER FACILITY WITH MORE CAPACITY. THE EXPANSION WILL ADDRESS THE CURRENT DEMAND AS WELL AS THE FUTURE NEEDS ANTICIPATED BY THE EXPANSION OF LUCILE PACKARD CHILDREN'S HOSPITAL STANFORD. CONSTRUCTION OF THE NEW FACILITY BEGAN IN JULY 2014 AND IS ANTICIPATED TO BE COMPLETED IN EARLY 2016. THE NEW FACILITY IS BEING BUILT IMMEDIATELY ADJACENT TO THE EXISTING HOUSE, 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. THE NEW HOUSE WILL ACCOMMODATE MORE FAMILIES THAN EVER BEFORE WITH AN ADDITIONAL 52,000 SQUARE FEET OF LIVING 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 2014. 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 XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM PRIOR YEAR. FORM 990, PART X, LINE 15: THE HOUSE AND ITS FACILITIES ARE LOCATED ON A LEASED PARCEL OF LAND FOR WHICH THE RENTAL PAYMENTS ARE BELOW MARKET RATES. AS PART OF ITS EXPANSION, THE HOUSE ENTERED INTO A REVISED LEASE AGREEMENT IN 2014. DURING 2014, THE HOUSE OBTAINED AN INDEPENDENT APPRAISAL OF THE NEW LEASEHOLD LAND VALUE AS OF THE REVISED LEASE AGREEMENT DATE. THE HOUSE RECOGNIZED AS REVENUE AND A CONTRIBUTION RECEIVABLE THE DIFFERENCE BETWEEN THE FAIR RENTAL VALUE OF THE PROPERTY AND THE STATED AMOUNT OF THE LEASE PAYMENT AT THE DATE OF CONTRIBUTION. DURING 2014, AN ADDITIONAL CONTRIBUTION OF $20,645,250 WAS RECOGNIZED ASSOCIATED WITH THE AMENDED LEASE AGREEMENT. THE RECEIVABLE HAS BEEN DISCOUNTED TO ITS NET PRESENT VALUE. THE DISCOUNT IS AMORTIZED TO DONATED GOODS AND SERVICES OVER THE TERM OF THE LEASE. A CONTRIBUTION RECEIVABLE HAS BEEN RECORDED AS FOLLOWS AS OF DECEMBER 31, 2014: NONCURRENT PORTION OF CONTRIBUTION RECEIVABLE: $62,941,994 LESS: DISCOUNT TO NET PRESENT VALUE: (42,370,570) NONCURRENT PORTION OF CONTRIBUTION RECEIVABLE, NET: 20,517,424 CURRENT PORTION OF CONTRIBUTION RECEIVABLE: 1,934,000 NET BENEFICIAL USE OF LAND: $22,505,424