Magic Incorporated

“Form 990, Part VI, Section B, Line 11b - At the annual meeting where board members and officers are elected, members of Magic's Board of Directors receive estimates of the financial information and drafts of the program descriptions to be entered on Form 990. Board members receive quarterly or when requested more frequent reports of program activities and finances. Directors are given opportunity to review completed Form 990's before they are submitted. They are informed that Magic also submits Form 199, California Exempt Organization Annual Information Return, to the California Franchise Tax Board; and Annual Registration Renewal Fee Report to the Attorney General of California and offered opportunity to review these if they choose. All information on these forms is taken directly from Form 990 and its attachments.”

“Form 990, Part VI, Section B, Line 12c - In association with the annual meeting where board members and officers are elected, members of Magic's Board of Directors sign a statement certifying that they have received a copy of Magic's conflict of interest policy, that they have read and understand this policy, have been provided an opportunity to ask questions about the policy, agree to comply with it, or in the case of board members already serving, that they have complied with it during the prior year. In association with the annual meeting, Magic officers and key personnel also sign an identical statement as described above.”

“Form 990, Part VI, Section B, Line 15 - Magic is entirely operated by volunteers. A handful reside at Magic's residential service learning community in Palo Alto. They do so at the convenience of the organization in order to be available to provide services 24/7/365. These volunteers, termed Resident Fellows are offered for themselves and one dependent: room, board, out-of-pocket medical expenses incidental living expenses, and travel expenses when away from Magic's Palo Alto service learning community to perform Magic work. Because two Fellows, both also Officers of Magic, sit on the Board of Directors, only the Independent Directors, comprising a majority of the Board, participate in deliberations related to compensation. All three are free of conflicts of interest as described in the instructions for Form 990 and attest annually to this effect. Historically compensation deliberations have been informal and without contemporaneous documentation. Fellows serve because they are dedicated to Magic's mission. When compared to what is paid to individuals shouldering comparable responsibilities in similar organizations in the Palo Alto area, their compensation is well below average. An annual compensation review is included in a meeting of the Independent Directors held at the time of the annual meeting of Magic's Board of Directors. A contemporaneous summary of their deliberations is made and filed with the minutes of the annual meeting.”

“Form 990, Part VI, Section C, Line 19 - Magic's makes its governing documents, conflict of interest policy, and financial statements available to the public upon request. In addition, the public can access: (1) the IRS website with a Tax Exempt Organization Search (TEOS) tool to view Magic's Form 990 for tax years 2017-2021; (2) a website maintained by Candid, a nonprofit organization, showing Magic's Form 990 along with a summary page with information drawn from the 990 for tax years 2019-2023; and (3) the California Secretary of State's website where Magic's articles of incorporation and bylaws can be seen.”

“Form 990, Part III, Line 4a - 4b, and 4c - Magic's programs are integrated, particularly our valuescience-based, service-learning community We've allocated expenses to reflect labor expended by personnel (Magic is operated entirely by volunteers) as well as cash and inkind outlays net of grants. We allocated 60% expenses (excluding grants) to Valuescience, 25% to Cooperation and Individual Well-being, and 15% to Environmental Stewardship”

“Form 990, Part III, Line 4c, continued. Our affiliate Escondido Outings Club organized rafting trips for 75 participants on six different rivers in Northern California: camping trips for 70 in Yosemite and other places; and ski trips for 30. We adopted as a sponsored project Project Green Home--a LEED Platinum, net zero energy Passive House used extensively for education public awareness (4000 visitors since 2008) that is featured in annual Peninsula Electric Home Tours.”

“Form 990, Part IX, Line 11a - 24, Column C - We estimate overhead expenses to be approximately 10% of the operating budget.”

“Form 990, Part IX, Line 11b - - 24, Column D - Magic does no fundraising apart from that which is incidental to delivery of program services.”

“Form 990, Part X, Line 17 - outstanding balance on credit card.”

“Form 990, Part XI, Line 5 - Magic marks all securities to market value at the end of each quarter. This unrealized capital gain is reported on Line 5.”

“Schedule B, Part II - The gifts of produce described in Schedule B, Part II, numbers 4 and 6, were received on a weekly basis throughout the year”