ANNUAL REPORT - RMHC

ANNUAL REPORTKeeping families close

Nel FamilyStayed at the Ronald McDonald Housein Baltimore, Mayland2RMHC 2018 ANNUAL REPORT KEEPING FAMILIES CLOSE

In 2018, Ronald McDonald House Charities(RMHC ) had the privilege of providing2.5 million overnight stays to families of ill and injured children receiving care by leadinghospitals worldwide. RMHC creates, finds and supports programs that directly improve the health and well-beingof children and their families. Through our global network of over 275 Chapters in more than64 countries and regions, we are changing millions of lives.RMHC programs not only provide access to quality health care, they enable family-centeredcare ensuring families are fully supported and actively involved in their children’s care.Sheila MusolinoPresident and CEOIn 2018, through two of our core programs, RMHC helped families save more than 930million in lodging and meal costs alone — alleviating a huge financial burden during acritical time in their lives.Through the Charity’s successes, we continue our unwavering ambition to expand in orderto fulfill unmet needs that continue to exist — the need of children without access to criticalhealth services and the need for an increasing number of families of ill and injured children tostay close to one another and the medical care they need to thrive through difficult journeys.This 2018 Annual Report is a testament to the strength of our system. We express ourgratitude for your generosity and investment in our mission.Steve RamirezChairman of theBoard of TrusteesSincerely,RMHC 2018 ANNUAL REPORT KEEPING FAMILIES CLOSE3

Like many families, the Andersons know the realities of travelingfor their sick child’s care. When their son Manning contracted meningitis shortlyafter birth, they were willing to do whatever it took to make sure he got the care heneeded. This meant moving their base from their home in Peterborough, Ontarioto Toronto, where Manning was transported. Thankfully, Jennifer and her husband,Jeff, were able to utilize the Ronald McDonald Family Room just steps from theirson in the Cardiac Critical Care unit.“It was amazing. It was a refuge for us to pick ourselves upbefore we went to see our son and face the day,” Jennifer explained.Once it became no longer necessary for Manning to receive in-patient care, he wasdischarged and placed on the transplant list to receive a new heart. It was criticalthat the Anderson family stay close to the hospital while they awaited a new heartfor Manning. Fortunately, they were able to stay at the Ronald McDonald House just blocks from the hospital while they waited.“It was a community that allowed my family not only to sustain, but to thrive in theface of adversity,” Jennifer says of her family’s experience at the House. Jeff noted,“I tell people all the time — the hospital saved our son, but the Ronald McDonaldHouse saved our family.”4RMHC 2018 ANNUAL REPORT KEEPING FAMILIES CLOSE

Anderson FamilyUtilized the Ronald McDonald Family Room andRonald McDonald House in Toronto, CanadaRMHC 2018 ANNUAL REPORT KEEPING FAMILIES CLOSE5

In 2018, RMHC provided more thanMILLIONovernight stayswhich saved families over930 million in lodging and meals6RMHC 2018 ANNUAL REPORT KEEPING FAMILIES CLOSE

3.5MWe servedchildren and their familiesin64countries & regionsRMHC 2018 ANNUAL REPORT KEEPING FAMILIES CLOSE7

We expanded our programsto provide resources for more families367 249 Ronald McDonaldHouses588new Ronald McDonaldHouses were addedin 2018Ronald McDonaldHouses wereexpanded in 2018RMHC 2018 ANNUAL REPORT KEEPING FAMILIES CLOSERonald McDonaldFamily Rooms21Ronald McDonaldFamily Rooms wereadded in 201850 Ronald McDonaldCare Mobiles1Ronald McDonaldCare Mobile wasadded in 2018

and had help fromvolunteerssupporting the missionRMHC 2018 ANNUAL REPORT KEEPING FAMILIES CLOSE9

centsof every dollar spent byRMHC Global supportedRMHC ProgramsBased on RMHC 2018 990 Financials10RMHC 2018 ANNUAL REPORT KEEPING FAMILIES CLOSE

De Angela Jackson & Jessica LloydStayed at the Ronald McDonald House inBirmingham, AlabamaRMHC 2018 ANNUAL REPORT KEEPING FAMILIES CLOSE11

Financial HighlightsASSETS, LIABILITIES & NET ASSETS(in thousands)2018 2017 138,355 141,406Liabilities 10,6789,115AssetsNet Assets 127,677 132,291AbbVie, a research-based global biopharmaceutical company,provided a historic donation of 100 million to RMHC in 2018. Ofthis donation, 96.3 million was designated to provide grants toChapters to build family-centered spaces and to add new guestsleeping rooms. Additionally, 3.7 million was designated tofund Chapter capacity building programs.Based on RMHC 2018 audited financial statements12RMHC 2018 ANNUAL REPORT KEEPING FAMILIES CLOSE

SUMMARY OF REVENUES & EXPENSES(in thousands)20172018ANNUAL OPERATINGEXPENSE RATIOSContributions 143,805 39,595Special Events RevenueInvestment Revenue (Loss)Other Revenues6,3386,061(6,780) 14,8601,199432Total Revenue 144,562 60,94894%*PROGRAM SERVICESProgram Services 139,170 36,696Fundraising6,0414,830Management &General Administration3,0662,954813Cost of Direct Benefits to Donors899Total Expenses 149,176 45,293Excess Revenues/(Expenses)( 4%FUNDRAISING2%MANAGEMENT & GENERALADMINISTRATION4,614) 15,655Based on RMHC 2018 audited financial statements*Program services expense ratio is 96% when calculated using the 2018 990 Financials.RMHC 2018 ANNUAL REPORT KEEPING FAMILIES CLOSE13

PROGRAM SERVICES BREAKDOWNTOTAL PROGRAMSERVICES(in thousands)2018 2017RMHC Local Chapter SupportRonald McDonald House 99,848 2,095Ronald McDonald Family Room1,764 1,353Ronald McDonald Care Mobile603 1,522RMHC Local ChapterSupport and Grants 34,820 28,138Total RMHC Local Chapter Support 137,035 33,108Other Programs 2,13598%LOCAL CHAPTERSUPPORT EXPENSE3,5882%OTHER PROGRAMSERVICE EXPENSEBased on RMHC 2018 audited financial statements14RMHC 2018 ANNUAL REPORT KEEPING FAMILIES CLOSE

Mena FamilyStayed at the Ronald McDonald Housein San José, Costa RicaRMHC 2018 ANNUAL REPORT KEEPING FAMILIES CLOSE15

Miles FamilyStayed at the Ronald McDonald Housein Winston-Salem, North Carolina

Donor PartnersWe are thankful for our generous and valued Donor PartnersThe Ronald McDonald House is our cornerstone program, but all RMHC programs arecreated as a part of the community. We rely on the support of many donors, partnersand individuals to help the families of sick children. Today, the need is so vast that onecompany or individual simply could not provide all the support required. On a globalbasis, our incredibly generous partners take our mission to heart. There is no bettercommunity of support than the special organizations we list below.FOUNDING MISSION PARTNERMcDonald’s, its owner/operators, suppliers and customers provide supportto RMHC through direct contributions to RMHC Global, by hosting a varietyof in-restaurant fundraising events and programs and by providing spacefor RMHC Donation Boxes in the restaurants. mcdonalds.comRMHC 2018 ANNUAL REPORT KEEPING FAMILIES CLOSE17

In 2018, AbbVie joined the RMHC family by making a historic gift of 100 millionwhich helps RMHC to provide housing and family-centered services for pediatricpatients and their families.The donation, the largest single gift in RMHC history, will allow for 674 new guestsleeping rooms at 33 Ronald McDonald Houses, enabling the RMHC system toprovide an additional 240,000 overnight stays each year.18RMHC 2018 ANNUAL REPORT KEEPING FAMILIES CLOSE

SPOKANE, WAFARGO, NDMISSOULA, MTBILLINGS, MTPORTLAND, ORROCHESTER, MNBOISE, IDMADISON, WIPORTLAND, MEANN ARBOR, MIDESMOINES, IAOMAHA, NEOAKTOLEDOLAWN, ILOHAKRON, OHPEORIA, ILPHILADELPHIA, PACINCINNATI, OHBALTIMORE, MDCOLORADOSPRINGS, COLOUISVILLE, KYWICHITA, KSNASHVILLE, TNOKLAHOMACITY, OKBAKERSFIELD, CADALLAS, TXAbbVie’s donation will allow forGREENVILLE, NCGREENVILLE, SCMACON, GASAN ANTONIO, TXHOUSTON, TXORLANDO, FLnew guestsleeping roomsat33Ronald McDonald HousesRMHC 2018 ANNUAL REPORT KEEPING FAMILIES CLOSE19

LEADERSHIP PARTNERSIGNATURE PARTNER 1 Million Annually 500,000- 999,999 AnnuallyThe Coca-Cola Company donated product andprovided support for RMHC fundraising eventsvalued at over 3.5 million to local Chapters. Theyalso provided direct support to RMHC Global tosupport program services. coca-cola.comLa-Z-Boy provided comfort with over 530 pieces offurniture donated to local Ronald McDonald Houses andRonald McDonald Family Rooms, and direct support forprogram services to RMHC Global. la-z-boy.comOver the last 30 years, RBC has continued to increasetheir support for RMHC across Canada, USA, Europeand Asia via participation on many local RMHCBoards and numerous global fundraising eventswith hundreds of employee volunteers contributingthousands of hours each year. rbc.com20RMHC 2018 ANNUAL REPORT KEEPING FAMILIES CLOSESouthwest provided travel vouchers, direct support andfacilitated the donation of Rapid Rewards points to localChapters and RMHC Global. southwest.comThirty-One Gifts and their family of consultantsprovided over 150,000 Thirty-One Bags to welcomefamilies to Ronald McDonald Houses throughout theUSA and Canada, in addition to direct support forprogram services to RMHC Global. thirtyonegifts.com

VISIONARY PARTNER 250,000- 499,999 AnnuallyIN-KIND PARTNERSThe following donors have provided significant in-kindsupport, and discounted products and services to our localRMHC Chapters. We value their contributions that helped oursystem provide comfort and care to millions of children andfamilies throughout the year.RMHC FRIEND 100,000- 249,999 AnnuallyAlpha Delta PiKeystone FoodsGrandin RoadAT&TThe Martin-Brower CompanyKendra ScottCargillMedelaStampin’ Up!Dillard'sNATBThe Roofing Alliance for ProgressDupontOffice DepotTogether Making icTempur Sealy International Inc.Golden State FoodsTrustwave Holdings, Inc.HAVITyson Foods, Inc.KB HomeRMHC 2018 ANNUAL REPORT KEEPING FAMILIES CLOSE21

Guzman FamilyStayed at the Ronald McDonald Housein Caracas, Venezuela22RMHC 2018 ANNUAL REPORT KEEPING FAMILIES CLOSE

Leadership and Board of DirectorsRMHC is led by a deeply caring, enthusiastic and active Board of Trustees who share theirinsights and expertise to help advance our mission. Their perspective, influence and networksare foundational strengths and are critical to enabling our ability to serve families through ourRonald McDonald Houses and other core programs.BOARD OF TRUSTEESSheila J. MusolinoPresident & CEO, RMHCWendy DavidsonPresident, Specialty Channels,KelloggJeffrey DavisPrincipal, Deloitte Consulting LLPAlex DimitriefRetired President and CEO,Global Growth Organization,General Electric CompanyStephen J. EasterbrookPresident & CEO, McDonald’sCorporationJanice FieldsFormer President,McDonald’s USAJavier C. GoizuetaRetired Vice-President, TheCoca-Cola Company; President,McDonald's Division WorldwideGinger HardageRetired Senior Vice President,Culture & Communications,Southwest Airlines; Founder,Unstoppable CulturesAlan Harris, M.D.Associate Chairman, Professorof Medicine and PreventiveMedicine, Hospital Epidemiologist,Department of Internal Medicine/Infectious Disease, Rush UniversityMedical CenterRMHC 2018 ANNUAL REPORT KEEPING FAMILIES CLOSE23