The Scan Foundation

“The bylaws of the scan foundation were updated in 2020 to add a preamble, a provision to permit the chair to serve more than four consecutive terms, and emergency authority and powers provisions.”

“The form 990 is prepared by deloitte & touche, working in conjunction with the scan foundation executive team and director of finance. The scan foundation's director of finance has direct responsibility for this effort, subject to supervision by the vice president of programs and operations and the president/ceo of the foundation. After an initial draft of the form 990 is prepared, it is circulated for review and comment by relevant members of the executive team who have responsibility for and/or knowledge regarding the various matters disclosed and/or described in the form. The general counsel, in particular, reviews the form 990 and ensures accuracy of descriptions and that disclosure is complete. The draft form 990 is reviewed in pertinent part by the compensation committee of the board, and the form 990 is reviewed in its entirety by the audit committee of the board of directors of the scan foundation. All members of the board of directors receive a copy of the form 990 after it is prepared for filing, prior to filing.”

“The scan foundation regularly and consistently monitors and enforces compliance with its conflict of interest policy through annual circulation of a conflict of interest questionnaire which all members of the board of directors, officers and all members of the staff must complete and sign. The foundation's general counsel assists in monitoring the conflicts of interest questionnaire, and advises regrading adherence to these policies on an ongoing basis.”

“The process for determining the compensation of the president & chief executive officer (ceo) of the scan foundation is conducted by the compensation committee of the board of directors of the scan foundation, all the voting members of which are independent persons. In determining the compensation of the president & ceo, the compensation committee works with and relies upon the counsel and expertise of an outside compensation consultant with well- established experience and expertise in the area of nonprofit organization executive compensation and compliance with the intermediate sanctions requirements applicable to such compensation. The compensation consultant provides an executive compensation report to the compensation committee each year which furnishes the basis for determining the president & ceo's compensation package during the following year. The executive compensation report is based on a review of the executive compensation practices of a variety of organizations considered comparable to the scan foundation based upon certain industry standard metrics. The compensation committee deliberates on the issue of the president & ceo's compensation package in consideration of the executive compensation report. Questions are asked of, and answered by the compensation consultant, regarding such report and other matters relevant to such package. Based on such deliberations, the compensation committee makes a recommendation to the board of directors of the scan foundation regarding the compensation package for the ceo for the following year. The full board of directors of the scan foundation deliberates on and then votes on such recommendation; the president & chief executive officer is recused for the entirety of such deliberations and vote. The minutes of the compensation committee and the board of directors for these meetings are prepared substantially contemporaneously and document such deliberations and decisions. The outside compensation consultant providing the executive compensation report and guidance related to the 2020 salary package was sullivan cotter. The process for determining the compensation of officers or other key employees of the scan foundation is conducted by the human resources department, the chief executive officer and the compensation committee of the board of directors of the scan foundation, all of the voting members of the committee are independent persons. In determining each employee's compensation, the human resources department and compensation committee work with and rely upon the counsel and expertise of an outside compensation consultant with well-established experience and expertise in the area of non-profit organization executive compesation and compliance with the intermediate sanctions requirements applicable to such compensation. The compensation consultant provides an executive compensation report to the human resources department and compensation committee every year which furnishes the basis for the establishment of such employees' compensation package during the following year. The executive compensation report is based on a review of the executive compensation practices of a variety of organizations that are considered comparable to the scan foundation based on various metrics. The president & ceo makes a recommendation to the compensation committee with respect to each of such employees' compensation package in light of the executive compensation report. At the compensation committee meeting addressing such matters, questions are asked of, and answered by the compensation consultant regarding such report and other matters relevant to such package; pursuant to their deliberations, the compensation committee makes (1) a decision regarding the compensation package for such employees other than chief financial officer (cfo) and (2) a recommendation regarding the cfo's compensation package, for the following year. The minutes of the compensation committee for this meeting are prepared”

“The scan foundation governing documents and conflict of interest policy are not made available to the public. The scan foundation makes its form 990, which contains financial information, available for public inspection. The scan foundation's audited financial statements are also made available for public inspection.”

“We continued our support of 20 regional aging and disability coalitions throughout the state, who work on their local levels to coordinate and improve the service delivery system. Likewise, we supported the california collaborative, made up of statewide aging and disability organizations, to exchange ideas and serve as expert resource to the administration, the centers for medicare and medicaid services and the california legislature. Our work in supporting these various service and advocacy organizations culminated in our annual forum, which was held virtually over a two-day period and included panels on state and federal topics of interest and were enhanced by cultural presentations. A further major success was the transition from our my care/my choice web-based decision tool for dually eligible persons to the national council on aging, which received a federal grant to expand this concept nationwide over the next few years. Finally, in response to the terrible covid-19 pandemic, we provided resources via our website, provided a grant to a state-contracted communications firm to create multilingual advertisements for social media, print, and radio to inform ethnically diverse older californians about available resources, and funded the national academy of medicine to conduct a sector-by sector review of covid-19 experiences, lessons, and opportunities for system-wide improvement in health care. Thematic goal 2: build resilience and capacity inspire and enable entrepreneurs and innovators to design with older adults not just for them and create new offerings that embrace the beauty of life as we age. Goal 2 successes: 2020 was an exciting year for the foundation as we created a for-profit subsidiary venture studio - alive ventures - and provided its operating funding. The goal of alive ventures is to create and fund brands, products, and services that help the relationships of older adults grow stronger and more joyful. The design team explores and develops service and product concepts in the thematic areas of love, work, friendship and vitality. Promising products and services will be spun-off into new and separate organizations to bring them to market. The year was mostly spent in preparation for this effort, by setting up the legal structure of the organization, developing bylaws and selecting the alive ventures board of directors, the majority of whom are foundation board members, and staffing up the new entity. We engaged birsel+seck to develop the brand concept and materials for alive ventures, and rosie communications to develop compelling narratives for alive ventures distinct mission to influence key stakeholders in creating meaningful design for older adults. We expect to have first spin-off products in 2021. Thematic goal 3: drive responsive financing policies support and encourage responsive federal and state financing policies to create meaningful care choices for older adults of today and tomorrow. Our third thematic goal acknowledges that the vast majority of older adults will need some daily living support as they age. The likelihood that any individual might need ltss is quite variable, with approximately 20 percent of older adults never requiring support while a slightly lower percentage will need high levels of care for five or more years. These costs can be quite substantial, and for many older adults living on fixed incomes, they can easily overwhelm remaining savings and other available resources. Compounding this problem is people's misperceptions about the likelihood of needing ltss as they age. As a result, there is little demand for an alternative solution. The largest sources of spending today are personal/out of pocket, then medicaid. Goal 3 successes: we continued our work with ati advisory and the long term quality alliance to leverage national experts and data analytics to advance implementation of the medicare special supplemental benefits for the chronically ill (ssbci). This effort has shown”

“Investments - program related include both mission impact investments ("miis") and program investments ("pis"). Mission impact investments ("miis") are part of the foundation's portfolio of program activities, in addition to grant making and program expenses, with the primary purpose to advance the foundation's mission. Miis are investments in securities of companies that offer products or services that further the foundation's mission, while offering a reasonable rate of return commensurate with the risk associated with the investment. While obtaining a market rate of return is a significant objective, it is not the primary objective. These equity investments are recorded at cost and separately from the foundation's primary investments portfolio. In support of the alive venture spin-off products and services, the foundation will make up to $5 million in miis available for 20 startup companies over a 3 year period beginning in 2021. Program investments ("pis") are made in addition to traditional grants and external program expenses. During 2020, the foundation invested $976,000 into alive ventures to further its objective of creating brands, products and services that help enrich the lives of older adults. Alive ventures' mission directly aligns with the mission and strategic goals of the foundation, and all of the investment into alive ventures was funded out of the foundation's programmatic budget.”

“Unexpended grants 116,258.”