Civic Intelligence

The Arc San Francisco

EIN 94-1415287 • 501(c)3 • San Francisco, CA

Profile

The mission of the arc san francisco is to transform the lives of adults with developmental disabilities by advancing lifelong learning, personal achievement, and independence.

1500 Howard StreetSan Francisco, CA 94103

www.thearcsf.org

Siviq Scores

Precomputed percentiles relative to similar nonprofits. These scores are descriptive rather than judgmental.

Liabilities / Assets

59th percentile

0.26x

Higher debt load relative to assets than 59% of similar nonprofits.

501(c)3 • $10M-$25M nonprofits • Source year 2023

Liabilities / Revenue

64th percentile

0.40x

Higher debt load relative to revenue than 64% of similar nonprofits.

501(c)3 • $10M-$25M nonprofits • Source year 2023

Net Margin

12th percentile

-20%

Higher net margin than 12% of similar nonprofits.

501(c)3 • $10M-$25M nonprofits • Source year 2023

Top Officer Pay

Score unavailable

No value available

No filing with officer rows is available for this organization yet.

Asset Growth

20th percentile

-3.6%

Faster asset growth than 20% of similar nonprofits.

501(c)3 • $10M-$25M nonprofits • Annualized from 2022 to 2023

Revenue Growth

13th percentile

-18%

Faster revenue growth than 13% of similar nonprofits.

501(c)3 • $10M-$25M nonprofits • Annualized from 2022 to 2023

Assets

Down

$16,981,789

Down $708,039 (-4.0%) from 2023

Liabilities

Down

$4,174,310

Down $392,952 (-8.6%) from 2023

Net Assets

Down

$12,807,479

Down $315,087 (-2.4%) from 2023

Revenue

Up

$12,746,981

Up $1,256,473 (+11%) from 2023

Expenses

Down

$13,819,428

Down $4,671 (-0.0%) from 2023

Net Income

Up

-$1,072,447

Up $1,261,144 (+54%) from 2023

Trend Graphs

Balance Sheet Trend

Grouped bars show assets, liabilities, and net assets across loaded filings.

$20M$15M$10M$5.0M$0Assets 2010: $10,384,287Liabilities 2010: $4,139,006Net Assets 2010: $6,245,2812010Assets 2011: $10,904,905Liabilities 2011: $4,190,891Net Assets 2011: $6,714,0142011Assets 2012: $10,382,476Liabilities 2012: $4,196,736Net Assets 2012: $6,185,7402012Assets 2013: $11,571,708Liabilities 2013: $4,532,941Net Assets 2013: $7,038,7672013Assets 2014: $11,563,329Liabilities 2014: $4,448,135Net Assets 2014: $7,115,1942014Assets 2015: $11,241,773Liabilities 2015: $4,487,224Net Assets 2015: $6,754,5492015Assets 2016: $10,840,850Liabilities 2016: $4,149,140Net Assets 2016: $6,691,7102016Assets 2017: $11,495,417Liabilities 2017: $4,321,163Net Assets 2017: $7,174,2542017Assets 2018: $11,532,413Liabilities 2018: $4,547,519Net Assets 2018: $6,984,8942018Assets 2019: $13,274,463Liabilities 2019: $4,261,924Net Assets 2019: $9,012,5392019Assets 2020: $15,247,399Liabilities 2020: $5,922,190Net Assets 2020: $9,325,2092020Assets 2021: $19,558,186Liabilities 2021: $4,131,042Net Assets 2021: $15,427,1442021Assets 2022: $18,343,166Liabilities 2022: $4,087,048Net Assets 2022: $14,256,1182022Assets 2023: $17,689,828Liabilities 2023: $4,567,262Net Assets 2023: $13,122,5662023Assets 2024: $16,981,789Liabilities 2024: $4,174,310Net Assets 2024: $12,807,4792024

Highlighted filing

2024

Assets$16,981,789
Liabilities$4,174,310
Net Assets$12,807,479

Operations Trend

Revenue, expenses, and net income by year, with the latest filing highlighted.

$20M$15M$10M$5.0M$0-$5.0MExpenses 2010: $8,507,9272010Expenses 2011: $8,824,2502011Expenses 2012: $9,136,3902012Revenue 2013: $10,459,002Expenses 2013: $9,398,278Net Income 2013: $1,060,7242013Revenue 2014: $9,764,220Expenses 2014: $9,995,269Net Income 2014: -$231,0492014Revenue 2015: $10,305,056Expenses 2015: $10,528,990Net Income 2015: -$223,9342015Revenue 2016: $10,263,458Expenses 2016: $10,180,250Net Income 2016: $83,2082016Revenue 2017: $11,088,935Expenses 2017: $11,036,154Net Income 2017: $52,7812017Revenue 2018: $11,204,927Expenses 2018: $11,431,783Net Income 2018: -$226,8562018Revenue 2019: $13,490,564Expenses 2019: $11,415,491Net Income 2019: $2,075,0732019Revenue 2020: $12,103,949Expenses 2020: $11,739,921Net Income 2020: $364,0282020Revenue 2021: $16,457,985Expenses 2021: $11,379,695Net Income 2021: $5,078,2902021Revenue 2022: $14,082,528Expenses 2022: $11,615,695Net Income 2022: $2,466,8332022Revenue 2023: $11,490,508Expenses 2023: $13,824,099Net Income 2023: -$2,333,5912023Revenue 2024: $12,746,981Expenses 2024: $13,819,428Net Income 2024: -$1,072,4472024

Highlighted filing

2024

Revenue$12,746,981
Expenses$13,819,428
Net Income-$1,072,447

Filings

Balance SheetOperations
YearAssetsLiabilitiesNet AssetsRevenueExpensesNet Income
2024Detailed filing. Detailed filing data is available for this year.$17.0$4.17$12.8$12.7$13.8$1.07
2023Detailed filing. Detailed filing data is available for this year.$17.7$4.57$13.1$11.5$13.8$2.33
2022Detailed filing. Detailed filing data is available for this year.$18.3$4.09$14.3$14.1$11.6$2.47
2021Detailed filing. Detailed filing data is available for this year.$19.6$4.13$15.4$16.5$11.4$5.08
2020Detailed filing. Detailed filing data is available for this year.$15.2$5.92$9.33$12.1$11.7$0.36
2019Detailed filing. Detailed filing data is available for this year.$13.3$4.26$9.01$13.5$11.4$2.08
2018Detailed filing. Detailed filing data is available for this year.$11.5$4.55$6.98$11.2$11.4$0.23
2017Detailed filing. Detailed filing data is available for this year.$11.5$4.32$7.17$11.1$11.0$0.05
2016Detailed filing. Detailed filing data is available for this year.$10.8$4.15$6.69$10.3$10.2$0.08
2015Detailed filing. Detailed filing data is available for this year.$11.2$4.49$6.75$10.3$10.5$0.22
2014Detailed filing. Detailed filing data is available for this year.$11.6$4.45$7.12$9.76$10.00$0.23
2013Summary only. Only limited summary data is available for this year.$11.6$4.53$7.04$10.5$9.40$1.06
2012Facts available. Structured filing facts are available, but richer extracted sections are limited.$10.4$4.20$6.19$9.14
2011Facts available. Structured filing facts are available, but richer extracted sections are limited.$10.9$4.19$6.71$8.82
2010Facts available. Structured filing facts are available, but richer extracted sections are limited.$10.4$4.14$6.25$8.51
Latest Filing Detail
Jump To
Filing Snapshot
Filing Period
Jul 1, 2023 to Jun 30, 2024
Signed
May 15, 2025
Return Version
2023v6.0
Gross Receipts
$15,292,842
Mission and Program Overview

Mission

The mission of the arc san francisco is to transform the lives of adults with developmental disabilities by advancing lifelong learning, personal achievement, and independence.

The arc san francisco is a learning and achievement center for adults with intellectual and developmental disabilities in san francisco, san mateo, and marin counties. The arc

Balance Sheet Detail
LineBeginningEndChange
Assets
Investments in Publicly Traded Securities$6,150,184$5,040,468▼ $1,109,716
Land, Buildings, and Equipment, Net$4,482,874$4,237,634▼ $245,240
Accounts Receivable$972,064$1,127,473▲ $155,409
Pledges and Grants Receivable$411,904$577,510▲ $165,606
Cash and Non-Interest-Bearing Accounts$48,256$201,068▲ $152,812
Savings and Temporary Cash Investments$307,049$196,782▼ $110,267
Prepaid Expenses and Deferred Charges$107,534$55,616▼ $51,918
Other Notes and Loans Receivable, Net$0$0→ $0
Receivable From Disqualified Prsn$0$0→ $0
Receivables From Officers Etc$0$0→ $0
Investments Other Securities$0$0→ $0
Investments Program Related$0$0→ $0
Intangible Assets$0$0→ $0
Inventories for Sale or Use$0$0→ $0
Loans From Officers Directors$0$0→ $0
Total Assets$17,689,828$16,981,789▼ $708,039
Other Assets Total$5,209,963$5,545,238▲ $335,275
Liabilities
Mortgage Notes Payable Secured by Investment Property$2,917,838$2,719,767▼ $198,071
Other Liabilities$1,174,303$1,012,230▼ $162,073
Accounts Payable and Accrued Expenses$475,121$442,313▼ $32,808
Grants Payable$0$0→ $0
Unsecured Notes Loans Payable$0$0→ $0
Deferred Revenue$0$0→ $0
Escrow Account Liability$0$0→ $0
Tax Exempt Bond Liabilities$0$0→ $0
Total Liabilities$4,567,262$4,174,310▼ $392,952
Net Assets / Fund Balance
Net Assets Without Donor Restrictions$8,026,436$7,647,087▼ $379,349
Net Assets With Donor Restrictions$5,096,130$5,160,392▲ $64,262
Total Net Assets Fund Balance$13,122,566$12,807,479▼ $315,087
Total Liabilities and Net Assets / Fund Balance$17,689,828$16,981,789▼ $708,039

Asset Categories

AssetBook ValueDepreciationBasis
Land$3,020,660-$3,020,660
Buildings$537,615$1,249,778$1,787,393
Leasehold Improvements$526,940$1,094,892$1,621,832
Equipment$152,419$1,076,676$1,229,095
Other Assets Org$278,190--

Endowment Activity

PeriodBeginningContrib.Gain/LossOther UsesEnd
2023$4,746,132$100,000▲ $542,629$192,217$5,160,392
2022$4,305,395$200,000▲ $461,067$189,000$4,746,132
2021$4,932,998-▼ $536,433$91,170$4,305,395
2020$2,363,820$2,000,000▲ $620,102$50,924$4,932,998
2019$2,414,713-▲ $40,852$91,745$2,363,820
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Kristen Hickey PedersenExecutive DirectorFT$190,842$17,000$207,842
Esther LandauSenior Director of AdvancementFT$159,649$38,037$197,686
Noriko BazeleyDirector OF FINANCE thru 9/15/23FT$99,321$94,001$193,322
Jennifer DresenSenior Director of ProgramFT$122,995$45,797$168,792
Virginia Wan NogueiraDirector Intake & Quality AssurancFT$128,585$14,400$142,985
Vernae GallareadDirector-$6,203-$6,203

Board Members and Trustees

NameTitle
Leah Van der MeiChair/director
Greg VogelCHAIR/DIRECTOR-Past
Catherine NicholsVice-Chair
Amanda CopansDirector
Brian HamiltonDirector
Brian TsungDirector
Christine TotahDirector
Jane DiazDirector
Keith LuckenDirector
Paul L DeneysDirector
Rochak SethiDirector
Sara DesumalaDirector
Shannon TrevinoDirector
kumar ramamurthyDirector
Albert ChangDIRECTOR-Past
Revenue and Support

Revenue Composition

Contributions and Grants
$11,750,486
Program Service Revenue
$419,831
Investment Income
$421,495
Other Revenue
$155,169
All Other Contributions
$10,904,624
Change in Net Assets
$-1,072,447
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Salaries, Compensation, and Employee Benefits$10,642,826
Other Expenses$3,176,602
Total Fundraising Expense$1,142,194
Grants and Similar Amounts Paid$0
Professional Fundraising Fees$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Other Salaries and Wages$7,369,779$80,714$461,182$7,911,675
Other Employee Benefits$1,478,264$16,190$92,506$1,586,960
Fees for Services Other$916,362$90,182$263,939$1,270,483
Payroll Taxes$576,098$6,309$36,051$618,458
Occupancy$400,833$30,082$14,179$445,094
Current Officers, Directors, Trustees, and Key Employees$397,314$7,410$22,869$427,593
Office Expenses$202,697$16,718$137,480$356,895
Depreciation Depletion$227,426$22,111$7,164$256,701
Fees for Services Accounting$81,922$8,062$23,596$113,580
Pension Plan Contributions$91,418$1,001$5,721$98,140
All Other Expenses$51,850$5,126$39,970$96,946
Interest$84,115$9,318$3,019$96,452
Insurance$77,647$8,602$2,787$89,036
Conferences and Meetings$21,620$2,178$3,394$27,192
Other Expenses$16,013$34$9,077$16,047
Fees for Services Legal$11,307$1,113$3,257$15,677
Total Functional Expenses$12,347,169$330,065$1,142,194$13,819,428
Fundraising, Events, and Gaming
Fundraising activities
Yes
Gaming activities
No
Professional fundraiser used
No

Fundraising and Gaming Totals

Line ItemAmount
Fundraising Gross Income$182,124
Fundraising Direct Expenses$75,339
Gaming Direct Expenses$0
Gaming Gross Income$0
Professional Fundraising Fees$0

Fundraising Events

EventGross ReceiptsGross RevenueDirect ExpensesNet Income
Arc Angel Break$148,851$148,851$70,232$78,619
BAC Work / Life$33,274$33,274$5,107$28,167
Total Events$182,125$182,125$75,339$106,786
Political and Lobbying Activity
Political campaign activity
No
Lobbying activity
No
Insider Transactions and Loans

Interested-Person Transactions

Interested PartyRelationshipDescriptionShared RevenueAmount
Vernae GallareadDirector, Employee & Client of the ArcWagesNo$6,203

Loans and Receivables

Line ItemBeginningEndChange
Loans from Officers, Directors, Trustees, and Key Employees$0$0→ $0
Receivables from Disqualified Persons$0$0→ $0
Receivables from Officers, Directors, Trustees, and Key Employees$0$0→ $0
Debt and Bond Financing

Other Reported Liabilities

LiabilityAmount
Accrued Compensated Absences$453,517
Lease Liability$302,174
Accured Interest Payable$236,539
Deposits$20,000
Governance and Compliance

Governance Checklist

Compiled or reviewed by an accountant
No
Annual disclosure for covered persons
Yes
Audit committee
Yes
Backup withholding compliance
Yes
Business relationship with 35% controlled entity
No
Business relationship with family members
No
Business relationship with organization members
Yes
Material changes to governing documents
No
Compensation from other sources disclosed
No
CEO compensation reviewed
Yes
Other officer compensation reviewed
Yes
Conflict-of-interest policy
Yes
Audited financial statements prepared
Yes
Key decisions subject to board approval
Yes
Management duties delegated
No

Governance Explanations

FORM 990, PART VI, SECTION A, LINE 6:

The organization has members who pay dues as established by the board of directors.

FORM 990, PART VI, SECTION A, LINE 7A:

The organization's members are entitled to elect the members of the board of directors, except where there is a vacancy mid-term.

FORM 990, PART VI, SECTION A, LINE 7B:

Members of the organization are entitled to vote on the election or removal of directors, on the disposition of all or substantially all of the organization's assets, on any merger and on the dissolution of the organization.

FORM 990, PART VI, SECTION B, LINE 11B:

The form 990 is prepared by our cpa firm, reviewed and approved by management, and provided to each member of the organization's board of directors for review and comment prior to filing.

FORM 990, PART VI, SECTION B, LINE 12C:

The board of directors has approved a conflict of interest policy applicable to all directors and officers which requires review and disclosure of any potential conflicts on a regular basis. In addition, employees are covered by an employee conflict of interest policy during their term of employment.

FORM 990, PART VI, SECTION B, LINE 15:

The compensation for the organization's ceo is reviewed and approved by the board of directors and is based on market comparability data. The compensation of other officers and key employees is based on market comparability data, reviewed by human resources, and approved by appropriate management.

FORM 990, PART VI, SECTION C, LINE 19:

The organization makes its governing documents, conflict of interest policy and financial statements available to the public upon written request. Financial statements and tax returns are also available on the organziations website.

Filing and Contact Details

Filer

Filer Name
The Arc San Francisco
EIN
94-1415287
In Care Of
% KRISTEN PEDERSEN
Phone
4152557200
Address
1500 HOWARD STREET, SAN FRANCISCO, CA 94103

Signing Officer

Name
Kristen Hickey Pedersen
Title
Executive Director
Phone
4152557200
Signed
2025-05-15
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Kristen Hickey Pedersen
Formed
1951
Legal Domicile
CA
Voting Board Members
15
Independent Board Members
15
Employees
235
Volunteers
48

Preparer

Firm
Withumsmithbrownpc
Address
100 SPECTRUM CENTER DRIVE STE 1000, IRVINE, CA 92618
Preparer
Richard L Ruvelson
Phone
9492612808
Supplemental Narrative

Additional Explanations

FORM 990, PART I, LINE 1, DESCRIPTION OF ORGANIZATION MISSION:

Provides its clients with innovative programs to support their educational and career goals along with robust services to support independent living, promote personal health, encourage artistic expression, and facilitate recreational activities.

FORM 990, PART III, LINE 4A, PROGRAM SERVICE ACCOMPLISHMENTS:

LIFELONG LEARNING The Arc San Francisco's Lifelong Learning team continued their comprehensive onsite services during 2023 and 2024 while ensuring a broad array of remote and hybrid services for individuals preferring to be served from home. 80% of our classes now offer hybrid or online formats, providing a versatile mix of in-person and remote learning options to accommodate diverse preferences. To adapt our programming to the wants and needs of our client base, Lifelong Learning conducted our Participant Survey in 2024, receiving an overwhelming response: 149 insightful contributions from 422 participants, resulting in an impressive 35% response rate. This invaluable feedback directs our efforts in refining and enhancing our services to better serve our community. In response to participants' needs, we offer six participant-led courses to meet their expressed interests. In addition to our daytime services, The Arc San Francisco received approval for the "vendorization" of our existing Social & Recreation program, ensuring that the 81 clients who attended in 2023 and 2024 can continue benefitting from opportunities to build peer relationships and inclusion in our community. Our remote team facilitated 24 unique learning classes weekly, providing continued engagement to 27 Tailored Day Services participants through consistent and high-quality programming. Our arts program supported the creation of four short films for the first-ever ArtReach Film Festival, which was attended by over 50 people. We also helped clients submit their work to three major exhibitions-Disability Arts Showcase, WAVE Collective, and Root Division. Additionally, our efforts contributed to clients earning $5,274 in art sales through pop-ups and corporate events. 42 Adult students attending classes Over 129 Classes and activities offered, 100 of them online or hybrid 414 Unique visitors to The Hub 309 Participants receiving services on campus 81 clients attending Social & Recreation activities Employment Services Employment Services continued to provide Job Development, Employment/Internship support and Job Coaching services model, which have all been primarily in-person. Many participants' job descriptions/responsibilities have changed since returning to their respective jobs, which The Arc Job Coaches supported to ensure a smooth transition back to in-person responsibilities. The Employment department also continued to expand into untapped roles/industries, as well as creating new partnerships, e.g.- Salluhall, Buffalo Wild Wings, and AX9 Security. We continue to look for new internship opportunities in addition to our long-standing internship at California Academy of Sciences. We started an in-house internship with the Arc Cafe/facilities, which has had a total of eight rotating interns learning customer service, managerial, administrative, and teamwork skills in addition to other employable skills. We also had a pilot internship in Marin County with the Indian Valley Organic Farm and Garden, which included four interns who learned various agricultural and gardening skills in addition to teamwork skills. We have also had positive conversations with previous internship/employment partners, e.g., SFMOMA and Deloitte about restarting our partnership. Job Development Our Job Development Department continued to find creative ways of providing job development and employment support services. Employment Specialists conducted assessments, employment planning meetings, Personal, Vocational and Social Adjustments, and Mock interviews both virtually and in-person. The Employment Roundtable class series prepared job seekers to be employment-ready with an 8-week curriculum of job readiness lessons. The Transition-Aged Youth (TAY) class, funded by San Francisco Department of Children, Youth, and Families, will also be resuming. The job market trends have changed, and we see more employment opportunities in retail, customer service and food services industries. 198 Em

FORM 990, PART III, LINE 4B, PROGRAM SERVICE ACCOMPLISHMENTS:

RESIDENTIAL The Arc Residential team continued the ongoing relationship with Mercy Housing with The Arc Mercy property on Page and Masonic. Victor Scaggs (Service Manager), working as the onsite coordinator, helped support Arc and non-Arc tenants with tenant issues throughout the year. These issues included problem solving neighbor disagreements, removal of non-tenant individuals doing untoward activities, and fire alarm issues. The Arc reconnected with the Mercy Housing management team for The Bill Sorro property. During the pandemic, The Bill Sorro property management team had asked all outside vendors to please hold off on coming on site to do any work. In 2023, they asked The Arc to please resume our activities. The Arc and Bill Sorro teams met to re-establish The Arc's role. There were some trials with classes and onsite support for community resources not accessed by tenants. As a result, The Arc opted to end our role as an onsite resource; however, we are still connected with Bill Sorro with our shared participants/tenants and remain as needed resource for Bill Sorro. We are the Bill Sorro Apartment management team when called upon. The Arc Residential Team continued to serve our participants in SLS/ILS throughout 2024. There were many unique post-pandemic issues we helped our participants navigate, such as reconnecting with worksites and day programs, routine doctor appointments, budgeting and bill paying, shopping for groceries and personal items, preparing and cooking breakfast, lunches and dinners, laundry, housekeeping and other tasks as laid out based on participant need. The Arc is currently serving 25 participants in Independent/Supported Living Skills services and housing advocacy.

FORM 990, PART III, LINE 4C, PROGRAM SERVICE ACCOMPLISHMENTS:

HEALTH ADVOCACY The Wellness Services Program is dedicated to supporting The Arc participants in accessing and managing their health care needs. Many participants come to the program after years without medical care due to barriers such as fear of seeing a doctor, challenges navigating insurance systems, difficulty scheduling appointments, lack of transportation, or struggles communicating effectively with medical providers. The program helps participants overcome these obstacles by offering personalized guidance and support to connect them with the care they need while navigating the complex health systems. At the heart of the program are Health Advocates, who serve as compassionate bridges between participants, medical providers, and other support systems. Health Advocates operate much like health case managers, working alongside participants to help them achieve healthy, independent, and self-directed lives. Through home visits and initial assessments, Health Advocates gain a deep understanding of participants' living situations and support systems. This last fiscal year, we were able to assess 18 new participants to receive Wellness Services. Health Advocates tailor services to everyone's unique needs, to provide person-centered care that meets participants where they are. Health Advocates continue to make sure all participants are getting their routine vaccinations: Covid, flu, RSV, shingles, tetanus (as needed). 140 HEALTH ADVOCACY SERVICES PARTICIPANTS 13,093 HEALTH CARE CASE MANAGEMENT HOURS 39 INTERVENTIONS: 9 EMERGENCY ROOM; 30 URGENT CARE APPOINTMENTS

Financial Statement Notes

PART V, LINE 4:

The barbara shupin endowment for independent living (shupin fund) was created to provide one or more grants, on an annual basis, to help adults with intellectual and other development disabilities live independently. The friends like me fund (flm fund) was created to combat the social isolation of adults with developmental disabilities through recreational activities and games that encourage friendship, conversations and socialization. The director's fund was created for strategic priorities or program investments. Consistent with the organization's spending policy, money is released annually the donor agreement specifies that the ed has discretion on how the money is utilized. The ryan rivette memorial fund was created in memoriam of a former member of the organization, and is used to fund programs geared towards adults with developmental disabilities. Investment policy the organization has adopted an investment policy that has the following objectives. These policies apply to all of the organization's investment funds: . Protect funds from volatility and significant losses . Earn a sufficient return to protect the fund from the effects of inflation . Provide long-term growth in the funds in excess of the 4% annual distribution threshold . Provide a source of funds that furthers the organization's mission and relevant strategic initiatives spending policy the annual distributions of the shupin fund, fml fund, director's fund and the ryan rivette memorial fund will be restricted to 4% of the average value of the fund (including both corpus and investment income) over the 36-month periods prior to june 30 of each fiscal year. From these annual distributions, expenditures or grants may be made annually, according to the purposes for which these funds are established. The grantor and/or family and friends may supplement the annual distributions with outright gifts of cash or securities. The annual distribution of the board directed fund in excess of 4% to support portions of the operating budget, as necessary, requires the approval of a majority of the board.

PART X, LINE 2:

The Organization is exempt from federal and state income taxes under Section 501(c)(3) of the Internal Revenue Code. Arc Apartments, L.P. has no provision for federal or state income taxes included in their financial statements since any income or loss is reported by the Partners on their income tax return. Therefore, no provision has been made for income taxes in the consolidated statements of activities. The Organization does not have any uncertain tax positions at June 30, 2024. There was no tax related interest or penalties included in the consolidated financial statements. Each organization files its own separate tax returns. The Organization evaluates tax positions requiring recognition using a more-likely-than-not threshold, and those tax positions requiring recognition are measured at the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. The Organization has evaluated the likelihood of its tax-exempt status being challenged as remote. Accordingly, as of June 30, 2024 and 2023, the Organization has not included any income tax provisions, including interest and penalties, in the consolidated financial statements.

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IRS990/ActivityOrMissionDesc0THE ARC SAN FRANCISCO IS A LEARNING AND ACHIEVEMENT CENTER FOR ADULTS WITH INTELLECTUAL AND DEVELOPMENTAL DISABILITIES IN SAN FRANCISCO, SAN MATEO, AND MARIN COUNTIES. THE ARC
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