TY 2012 Form 990PF

- TIN:

Form990-PF
Click to see attachment

Department of the Treasury
Internal Revenue Service

Return of Private Foundation

or Section 4947(a)(1) Nonexempt Charitable Trust
Treated as a Private Foundation

Note. The foundation may be able to use a copy of this return to satisfy state reporting requirements.

OMB No. 1545-0052

2012

Open to Public Inspection

For calendar year 2012, or tax year beginning 07-01-2012 , and ending 06-30-2013

Name of foundation
CAROLINE AND ROXANNA MONTROSE
EDUCATIONAL FOUNDATION

Number and street (or P.O. box number if mail is not delivered to street address)PO BOX S Room/suite

City or town, state, and ZIP code
MENLO PARK, CA94026

A Employer identification number

23-7411509

B Telephone number (see instructions)

(650) 941-3710

C If exemption application is pending, check here bullet

G Check all that apply: Initial returnInitial return of a former public charity
Final returnAmended return
Address changeName change

D 1. Foreign organizations, check here ............. bullet

2. Foreign organizations meeting the 85% test,
check here and attach computation ........... bullet

H Check type of organization: Section 501(c)(3) exempt private foundation
Section 4947(a)(1) nonexempt charitable trustOther taxable private foundation

I Fair market value of all assets at end
of year (from Part II, col. (c),
line 16) bullet

$1,864,963J Accounting method: Cash Accrual
Other (specify)
(Part I, column (d) must be on cash basis.)

E If private foundation status was terminated
under section 507(b)(1)(A), check here ......... bullet

F If the foundation is in a 60-month termination
under section 507(b)(1)(B), check here ......... bullet

	Analysis of Revenue and Expenses (The total of amounts in columns (b), (c), and (d) may not necessarily equal the amounts in column (a) (see instructions).)	(a) Revenue and expenses per books		(b) Net investment income	(d) Disbursements for charitable purposes (cash basis only)


1	Contributions, gifts, grants, etc., received (attach schedule)
2	Check
3	Interest on savings and temporary cash investments	13,333		13,333
4	Dividends and interest from securities......	30,939		30,939
5a	Gross rents..............
b	Net rental income or (loss)
6a	Net gain or (loss) from sale of assets not on line 10		56,337
b	Gross sales price for all assets on line 6a 160,500
7	Capital gain net income (from Part IV, line 2)...			56,337
8	Net short-term capital gain.........
9	Income modifications...........
10a	Gross sales less returns and allowances
b	Less: Cost of goods sold....
c	Gross profit or (loss) (attach schedule).....
11	Other income (attach schedule).......
12	Total. Add lines 1 through 11........	100,609		100,609
13	Compensation of officers, directors, trustees, etc.	13,042		6,521	2,608
14	Other employee salaries and wages......
15	Pension plans, employee benefits.......
16a	Legal fees (attach schedule).........
b	Accounting fees (attach schedule).......		6,095	3,047	3,048
c	Other professional fees (attach schedule)....
17	Interest...............
18	Taxes (attach schedule) (see instructions)		1,757	363	145
19	Depreciation (attach schedule) and depletion...
20	Occupancy..............
21	Travel, conferences, and meetings.......
22	Printing and publications..........
23	Other expenses (attach schedule).......		3,740
24	Total operating and administrative expenses.
	Add lines 13 through 23..........	24,634		9,931	5,801
25	Contributions, gifts, grants paid........	110,000			110,000
26	Total expenses and disbursements. Add lines 24 and 25	134,634		9,931	115,801
27	Subtract line 26 from line 12:
a	Excess of revenue over expenses and disbursements	-34,025
b	Net investment income (if negative, enter -0-)			90,678
c	Adjusted net income (if negative, enter -0-)...

For Paperwork Reduction Act Notice, see instructions.

Cat. No. 11289X Form 990-PF (2012)

Form 990-PF (2012)

Page 2

Part II		Balance Sheets	Beginning of year	End of year
Part II		Balance Sheets	(a) Book Value	(b) Book Value	(c) Fair Market Value
	1	Cash—non-interest-bearing...............
	2	Savings and temporary cash investments..........	168,896	99,899	99,899
	3	Accounts receivable
		Less: allowance for doubtful accounts
	4	Pledges receivable
		Less: allowance for doubtful accounts
	5	Grants receivable.................
	6	Receivables due from officers, directors, trustees, and other
		disqualified persons (attach schedule) (see page 15 of the
		instructions)....................
	7	Other notes and loans receivable (attach schedule)
		Less: allowance for doubtful accounts
	8	Inventories for sale or use...............
	9	Prepaid expenses and deferred charges...........
	10a	Investments—U.S. and state government obligations (attach schedule)
	b	Investments—corporate stock (attach schedule)........	719,411	704,792	1,302,592
	c	Investments—corporate bonds (attach schedule)........	417,205	467,099	462,472
	11	Investments—land, buildings, and equipment: basis
		Less: accumulated depreciation (attach schedule)
	12	Investments—mortgage loans..............
	13	Investments—other (attach schedule)...........
	14	Land, buildings, and equipment: basis
		Less: accumulated depreciation (attach schedule)
	15	Other assets (describe )
	16	Total assets (to be completed by all filers—see the
		instructions. Also, see page 1, item I)	1,305,512	1,271,790	1,864,963
	17	Accounts payable and accrued expenses..........
	18	Grants payable...................
	19	Deferred revenue..................
	20	Loans from officers, directors, trustees, and other disqualified persons
	21	Mortgages and other notes payable (attach schedule)......
	22	Other liabilities (describe )	810	1,113
	23	Total liabilities (add lines 17 through 22)..........	810	1,113
		Foundations that follow SFAS 117, check here
		and complete lines 24 through 26 and lines 30 and 31.
	24	Unrestricted....................
	25	Temporarily restricted................
	26	Permanently restricted................
		Foundations that do not follow SFAS 117, check here
		and complete lines 27 through 31.
	27	Capital stock, trust principal, or current funds.........	1,304,702	1,270,677
	28	Paid-in or capital surplus, or land, bldg., and equipment fund
	29	Retained earnings, accumulated income, endowment, or other funds
	30	Total net assets or fund balances (see page 17 of the
		instructions)....................	1,304,702	1,270,677
	31	Total liabilities and net assets/fund balances (see page 17 of
		the instructions)..................	1,305,512	1,271,790

Part III	Analysis of Changes in Net Assets or Fund Balances
1	Total net assets or fund balances at beginning of year—Part II, column (a), line 30 (must agree
	with end-of-year figure reported on prior year’s return)...............	1	1,304,702
2	Enter amount from Part I, line 27a.....................	2	-34,025
3	Other increases not included in line 2 (itemize)	3
4	Add lines 1, 2, and 3..........................	4	1,270,677
5	Decreases not included in line 2 (itemize)	5
6	Total net assets or fund balances at end of year (line 4 minus line 5)—Part II, column (b), line 30.	6	1,270,677

Form 990-PF (2012)

Page 3

Part IV

Capital Gains and Losses for Tax on Investment Income

(a) List and describe the kind(s) of property sold (e.g., real estate, 2-story brick warehouse; or common stock, 200 shs. MLC Co.)		(b) How acquired P—Purchase D—Donation	(c) Date acquired (mo., day, yr.)	(d) Date sold (mo., day, yr.)
1 a	15,000 GNMA 11-24 TB 10/20/40	P	2011-03-16	2013-02-20
b	19,999 FNR 2003-81 CB 9/25/18	P	2003-08-29	2013-05-28
c	25,000 FHR 2957 A 11/15/23	P	2005-04-14	2013-06-15
d	25,000 WAL-MART STORES 4/15/13	P	2009-04-23	2013-04-15
e	20,000 SANDISK CORP 5/15/13	P	2008-06-13	2013-05-16
	20,000 MCGRAW-HILL COS 11/15/12	P	2009-09-10	2012-11-15
	3,000 STEWART ENTERPRISES	P	2006-02-06	2013-06-06
	200 SEARS HOMETOWN	P	2008-01-22	2012-09-20
	SEARS CANADA CASH IN LIEU	P	2001-01-01	2012-11-13
	800 ROBBINS MEYERS	P	2006-07-12	2012-09-20
	9 ORCHARD SUPPLY HARDWARE - PREFERRED	P	2001-01-01	2012-09-20
	9 ORCHARD SUPPLY HARDWARE - COMMON	P	2001-01-01	2012-09-20
	1,000 MISSION WEST PPTYS INC	P	2007-05-09	2013-01-15
	HANDLEMAN CO	P	2001-01-01	2013-03-18
	DUKE ENERGY CASH IN LIEU	P	2001-01-01	2012-07-01

(e) Gross sales price		(g) Cost or other basis plus expense of sale	(h) Gain or (loss) (e) plus (f) minus (g)
a		137	-137
b		33	-33
c		752	-752
d	25,000	26,575	-1,575
e	20,000	15,067	4,933
	20,000	21,342	-1,342
	38,263	16,544	21,719
	407		407
	8		8
	46,881	8,730	38,151
	15		15
	104		104
	9,180	14,983	-5,803
	596		596
	46		46

Complete only for assets showing gain in column (h) and owned by the foundation on 12/31/69			(l) Gains (Col. (h) gain minus col. (k), but not less than -0-) or Losses (from col.(h))
(i) F.M.V. as of 12/31/69	(j) Adjusted basis as of 12/31/69	(k) Excess of col. (i) over col. (j), if any
a			-137
b			-33
c			-752
d			-1,575
e			4,933
			-1,342
			21,719
			407
			8
			38,151
			15
			104
			-5,803
			596
			46

2	Capital gain net income or (net capital loss)	If gain, also enter in Part I, line 7 If (loss), enter -0- in Part I, line 7	2	56,337
3	Net short-term capital gain or (loss) as defined in sections 1222(5) and (6):
	If gain, also enter in Part I, line 8, column (c) (see instructions). If (loss), enter -0- in Part I, line 8 . . . . . . . . . . . . . . . .		3

Part V

Qualification Under Section 4940(e) for Reduced Tax on Net Investment Income

(For optional use by domestic private foundations subject to the section 4940(a) tax on net investment income.)

If section 4940(d)(2) applies, leave this part blank.

Was the foundation liable for the section 4942 tax on the distributable amount of any year in the base period? Yes No

If “Yes,” the foundation does not qualify under section 4940(e). Do not complete this part.

1 Enter the appropriate amount in each column for each year; see page 18 of the instructions before making any entries.
(a) Base period years Calendar year (or tax year beginning in)	(b) Adjusted qualifying distributions	(c) Net value of noncharitable-use assets	(d) Distribution ratio (col. (b) divided by col. (c))
2011	104,927	1,698,940	0.06176
2010	103,910	1,726,499	0.06019
2009	105,975	1,643,487	0.06448
2008	102,930	1,540,664	0.06681
2007	85,235	2,030,996	0.04197

2	Total of line 1, column (d) ......................	2	0.29520
3	Average distribution ratio for the 5-year base period—divide the total on line 2 by 5, or by the number of years the foundation has been in existence if less than 5 years. . .	3	0.05904
4	Enter the net value of noncharitable-use assets for 2012 from Part X, line 5.....	4	1,783,746
5	Multiply line 4 by line 3.......................	5	105,314
6	Enter 1% of net investment income (1% of Part I, line 27b)...........	6	907
7	Add lines 5 and 6.........................	7	106,221
8	Enter qualifying distributions from Part XII, line 4..............	8	115,801
If line 8 is equal to or greater than line 7, check the box in Part VI, line 1b, and complete that part using a 1% tax rate. See the Part VI instructions.

Form 990-PF (2012)

Page 4

Part VI

Excise Tax Based on Investment Income (Section 4940(a), 4940(b), 4940(e), or 4948—see page 18 of the instructions)

1a	Exempt operating foundations described in section 4940(d)(2), check hereand enter “N/A” on line 1.
	Date of ruling or determination letter: (attach copy of letter if necessary–see instructions)
b	Domestic foundations that meet the section 4940(e) requirements in Part V, check	1	907
	hereand enter 1% of Part I, line 27b...................
c	All other domestic foundations enter 2% of line 27b. Exempt foreign organizations enter 4% of Part I, line 12, col. (b)
2	Tax under section 511 (domestic section 4947(a)(1) trusts and taxable foundations only. Others enter -0-)	2
3	Add lines 1 and 2............................	3	907
4	Subtitle A (income) tax (domestic section 4947(a)(1) trusts and taxable foundations only. Others enter -0-).	4
5	Tax based on investment income. Subtract line 4 from line 3. If zero or less, enter -0- .....	5	907
6	Credits/Payments:

a	2012 estimated tax payments and 2011 overpayment credited to 2012	6a	720
b	Exempt foreign organizations—tax withheld at source.......	6b
c	Tax paid with application for extension of time to file (Form 8868)	6c
d	Backup withholding erroneously withheld ...........	6d

7	Total credits and payments. Add lines 6a through 6d..............		7	720
8	Enter any penalty for underpayment of estimated tax. Check hereif Form 2220 is attached.		8
9	Tax due. If the total of lines 5 and 8 is more than line 7, enter amount owed.......		9	187
10	Overpayment. If line 7 is more than the total of lines 5 and 8, enter the amount overpaid...		10
11	Enter the amount of line 10 to be: Credited to 2013 estimated tax	Refunded	11

Part VII-A

Statements Regarding Activities

During the tax year, did the foundation attempt to influence any national, state, or local legislation or did

Yes

it participate or intervene in any political campaign? ....................

Did it spend more than $100 during the year (either directly or indirectly) for political purposes (see page 19 of

the instructions for definition)?............................

If the answer is “Yes” to 1a or 1b, attach a detailed description of the activities and copies of any materials

published or distributed by the foundation in connection with the activities.

Did the foundation file Form 1120-POL for this year?.....................

Enter the amount (if any) of tax on political expenditures (section 4955) imposed during the year:

(1) On the foundation. bullet

$ (2) On foundation managers. bullet

Enter the reimbursement (if any) paid by the foundation during the year for political expenditure tax imposed

on foundation managers. bullet

Has the foundation engaged in any activities that have not previously been reported to the IRS?.......

If “Yes,” attach a detailed description of the activities.

Has the foundation made any changes, not previously reported to the IRS, in its governing instrument, articles

of incorporation, or bylaws, or other similar instruments? If “Yes,” attach a conformed copy of the changes....

Did the foundation have unrelated business gross income of $1,000 or more during the year?........

If “Yes,” has it filed a tax return on Form 990-T for this year?...................

Was there a liquidation, termination, dissolution, or substantial contraction during the year?.........

If “Yes,” attach the statement required by General Instruction T.

Are the requirements of section 508(e) (relating to sections 4941 through 4945) satisfied either:

By language in the governing instrument, or

By state legislation that effectively amends the governing instrument so that no mandatory directions

that conflict with the state law remain in the governing instrument?................

Yes

Did the foundation have at least $5,000 in assets at any time during the year? If “Yes,” complete Part II, col. (c), and Part XV.

Yes

Enter the states to which the foundation reports or with which it is registered (see instructions)

If the answer is “Yes” to line 7, has the foundation furnished a copy of Form 990-PF to the Attorney

General (or designate) of each state as required by General Instruction G? If “No,” attach explanation .

Yes

Is the foundation claiming status as a private operating foundation within the meaning of section 4942(j)(3)

or 4942(j)(5) for calendar year 2012 or the taxable year beginning in 2012 (see instructions for Part XIV)?

If “Yes,” complete Part XIV.............................

Did any persons become substantial contributors during the tax year? If “Yes,” attach a schedule listing their names and addresses.

At any time during the year, did the foundation, directly or indirectly, own a controlled entity within the

meaning of section 512(b)(13)? If "Yes," attach schedule. (see instructions) .............

Did the foundation make a distribution to a donor advised fund over which the foundation or a disqualified person had

advisory privileges? If "Yes," attach statement (see instructions).................

Did the foundation comply with the public inspection requirements for its annual returns and exemption application?

Yes

Website address bullet

N/A

The books are in care of bullet

ERIC MILLAR Telephone no. bullet

(650) 941-3710

Located at bullet

400 CYPRESS DRIVELos AltosCA ZIP+4 bullet

94022

Section 4947(a)(1) nonexempt charitable trusts filing Form 990-PF in lieu of Form 1041 —Check here......... bullet

and enter the amount of tax-exempt interest received or accrued during the year ...... bullet

At any time during calendar year 2012, did the foundation have an interest in or a signature or other authority over

a bank, securities, or other financial account in a foreign country? .................

See instructions for exceptions and filing requirements for Form TD F 90-22.1. If "Yes", enter the name of the foreign country bullet

Form 990-PF (2012)

Page 5

Part VII-B

Statements Regarding Activities for Which Form 4720 May Be Required

File Form 4720 if any item is checked in the “Yes” column, unless an exception applies.

Yes

During the year did the foundation (either directly or indirectly):

(1) Engage in the sale or exchange, or leasing of property with a disqualified person? YesNo

(2) Borrow money from, lend money to, or otherwise extend credit to (or accept it from)

a disqualified person?.........................YesNo

(3) Furnish goods, services, or facilities to (or accept them from) a disqualified person? YesNo

(4) Pay compensation to, or pay or reimburse the expenses of, a disqualified person? YesNo

(5) Transfer any income or assets to a disqualified person (or make any of either available

for the benefit or use of a disqualified person)?.................YesNo

(6) Agree to pay money or property to a government official? (Exception. Check “No”

if the foundation agreed to make a grant to or to employ the official for a period

after termination of government service, if terminating within 90 days.).........YesNo

If any answer is “Yes” to 1a(1)–(6), did any of the acts fail to qualify under the exceptions described in Regulations

section 53.4941(d)-3 or in a current notice regarding disaster assistance (see page 20 of the instructions)?...

Organizations relying on a current notice regarding disaster assistance check here......... bullet

Did the foundation engage in a prior year in any of the acts described in 1a, other than excepted acts,

that were not corrected before the first day of the tax year beginning in 2012?.............

Taxes on failure to distribute income (section 4942) (does not apply for years the foundation was a private

operating foundation defined in section 4942(j)(3) or 4942(j)(5)):

At the end of tax year 2012, did the foundation have any undistributed income (lines 6d

and 6e, Part XIII) for tax year(s) beginning before 2012?...............YesNo

If “Yes,” list the years bullet

20, 20, 20, 20

Are there any years listed in 2a for which the foundation is not applying the provisions of section 4942(a)(2)

(relating to incorrect valuation of assets) to the year’s undistributed income? (If applying section 4942(a)(2)

to all years listed, answer “No” and attach statement—see instructions.) ..............

If the provisions of section 4942(a)(2) are being applied to any of the years listed in 2a, list the years here.

20, 20, 20, 20

Did the foundation hold more than a 2% direct or indirect interest in any business enterprise at

any time during the year?.........................YesNo

If “Yes,” did it have excess business holdings in 2012 as a result of (1) any purchase by the foundation

or disqualified persons after May 26, 1969; (2) the lapse of the 5-year period (or longer period approved

by the Commissioner under section 4943(c)(7)) to dispose of holdings acquired by gift or bequest; or (3)

the lapse of the 10-, 15-, or 20-year first phase holding period? (Use Schedule C, Form 4720, to determine

if the foundation had excess business holdings in 2012.)....................

Did the foundation invest during the year any amount in a manner that would jeopardize its charitable purposes?

Did the foundation make any investment in a prior year (but after December 31, 1969) that could jeopardize its

charitable purpose that had not been removed from jeopardy before the first day of the tax year beginning in 2012?

During the year did the foundation pay or incur any amount to:

(1) Carry on propaganda, or otherwise attempt to influence legislation (section 4945(e))? YesNo

(2) Influence the outcome of any specific public election (see section 4955); or to carry

on, directly or indirectly, any voter registration drive?...............YesNo

(3) Provide a grant to an individual for travel, study, or other similar purposes? YesNo

(4) Provide a grant to an organization other than a charitable, etc., organization described

in section 509(a)(1), (2), or (3), or section 4940(d)(2)? (see instructions)........YesNo

(5) Provide for any purpose other than religious, charitable, scientific, literary, or

educational purposes, or for the prevention of cruelty to children or animals?........YesNo

If any answer is “Yes” to 5a(1)–(5), did any of the transactions fail to qualify under the exceptions described in

Regulations section 53.4945 or in a current notice regarding disaster assistance (see instructions)? ......

Organizations relying on a current notice regarding disaster assistance check here......... bullet

If the answer is “Yes” to question 5a(4), does the foundation claim exemption from the

tax because it maintained expenditure responsibility for the grant?............YesNo

If “Yes,” attach the statement required by Regulations section 53.4945–5(d).

Did the foundation, during the year, receive any funds, directly or indirectly, to pay premiums on

a personal benefit contract?........................YesNo

Did the foundation, during the year, pay premiums, directly or indirectly, on a personal benefit contract?....

If “Yes” to 6b, file Form 8870.

At any time during the tax year, was the foundation a party to a prohibited tax shelter transaction? YesNo

If yes, did the foundation receive any proceeds or have any net income attributable to the transaction? ....

Form 990-PF (2012)

Page 6

Part VIII

Information About Officers, Directors, Trustees, Foundation Managers, Highly Paid Employees,
and Contractors

1 List all officers, directors, trustees, foundation managers and their compensation (see instructions).
(a) Name and address	(b) Title, and average hours per week devoted to position	(c) Compensation (If not paid, enter -0-)	(d) Contributions to employee benefit plans and deferred compensation	(e) Expense account, other allowances
HOLLY D MILLAR	Secretary/TSTEE 5.00	6,521
P O BOX S MENLO PARK,CA940266220	Secretary/TSTEE 5.00	6,521
ERIC S MILLAR	President/TSTEE 5.00	6,521
P O BOX S MENLO PARK,CA940266220	President/TSTEE 5.00	6,521

2 Compensation of five highest-paid employees (other than those included on line 1—see instructions). If none, enter “NONE.”
(a) Name and address of each employee paid more than $50,000	(b) Title, and average hours per week devoted to position	(c) Compensation	(d) Contributions to employee benefit plans and deferred compensation	(e) Expense account, other allowances
NONE









Total number of other employees paid over $50,000...................

3 Five highest-paid independent contractors for professional services (see instructions). If none, enter "NONE".
(a) Name and address of each person paid more than $50,000	(b) Type of service	(c) Compensation
NONE

Total number of others receiving over $50,000 for professional services............. bullet

Part IX-A

Summary of Direct Charitable Activities

List the foundation’s four largest direct charitable activities during the tax year. Include relevant statistical information such as the number of organizations and other beneficiaries served, conferences convened, research papers produced, etc.		Expenses
1


2


3


4

Form 990-PF (2012)

Page 7

Part IX-B

Summary of Program-Related Investments (see instructions)

Describe the two largest program-related investments made by the foundation during the tax year on lines 1 and 2.		Amount
1


2


All other program-related investments. See page 24 of the instructions.
3

Total. Add lines 1 through 3.......................... bullet

Part X

Minimum Investment Return (All domestic foundations must complete this part. Foreign foundations,
see instructions.)

Fair market value of assets not used (or held for use) directly in carrying out charitable, etc.,

purposes:

Average monthly fair market value of securities...................

1,658,873

Average of monthly cash balances.......................

152,037

Fair market value of all other assets (see instructions)................

Total (add lines 1a, b, and c).........................

1,810,910

Reduction claimed for blockage or other factors reported on lines 1a and

1c (attach detailed explanation) .............

Acquisition indebtedness applicable to line 1 assets..................

Subtract line 2 from line 1d.........................

1,810,910

Cash deemed held for charitable activities. Enter 1 1⁄2% of line 3 (for greater amount, see

instructions) .............................

27,164

Net value of noncharitable-use assets. Subtract line 4 from line 3. Enter here and on Part V, line 4

1,783,746

Minimum investment return. Enter 5% of line 5..................

89,187

Part XI

Distributable Amount (see instructions) (Section 4942(j)(3) and (j)(5) private operating foundations and certain foreign organizations check here bullet

and do not complete this part.)

Minimum investment return from Part X, line 6....................

89,187

Tax on investment income for 2012 from Part VI, line 5......

907

Income tax for 2012. (This does not include the tax from Part VI.)...

Add lines 2a and 2b............................

907

Distributable amount before adjustments. Subtract line 2c from line 1............

88,280

Recoveries of amounts treated as qualifying distributions................

Add lines 3 and 4............................

88,280

Deduction from distributable amount (see instructions).................

Distributable amount as adjusted. Subtract line 6 from line 5. Enter here and on Part XIII,

line 1................................

88,280

Part XII

Qualifying Distributions (see instructions)

Amounts paid (including administrative expenses) to accomplish charitable, etc., purposes:

Expenses, contributions, gifts, etc.—total from Part I, column (d), line 26 ..........

115,801

Program-related investments—total from Part IX-B..................

Amounts paid to acquire assets used (or held for use) directly in carrying out charitable, etc.,

purposes...............................

Amounts set aside for specific charitable projects that satisfy the:

Suitability test (prior IRS approval required)....................

Cash distribution test (attach the required schedule) .................

Qualifying distributions. Add lines 1a through 3b. Enter here and on Part V, line 8, and Part XIII, line 4

115,801

Foundations that qualify under section 4940(e) for the reduced rate of tax on net investment

income. Enter 1% of Part I, line 27b (see instructions).................

907

Adjusted qualifying distributions. Subtract line 5 from line 4..............

114,894

Note: The amount on line 6 will be used in Part V, column (b), in subsequent years when calculating whether the foundation qualifies for
the section 4940(e) reduction of tax in those years.

Form 990-PF (2012)

Page 8

Part XIII

Undistributed Income (see instructions)

		(a) Corpus	(c) 2011	(d) 2012
1 Distributable amount for 2012 from Part XI, line 7				88,280
2 Undistributed income, if any, as of the end of 2012:
a Enter amount for 2011 only.......			5,965
b Total for prior years:20, 20, 20
3 Excess distributions carryover, if any, to 2012:
a From 2007.......
b From 2008.......
c From 2009.......
d From 2010.......
e From 2011.......
fTotal of lines 3a through e.........
4Qualifying distributions for 2012 from Part
XII, line 4: $ 115,801
a Applied to 2011, but not more than line 2a			5,965
b Applied to undistributed income of prior years (Election required—see instructions)......
c Treated as distributions out of corpus (Election required—see instructions).........		0
d Applied to 2012 distributable amount.....				88,280
e Remaining amount distributed out of corpus		21,556
5 Excess distributions carryover applied to 2012.
(If an amount appears in column (d), the same amount must be shown in column (a).)
6Enter the net total of each column as indicated below:
a Corpus. Add lines 3f, 4c, and 4e. Subtract line 5		21,556
b Prior years’ undistributed income. Subtract line 4b from line 2b ...........
c Enter the amount of prior years’ undistributed income for which a notice of deficiency has been issued, or on which the section 4942(a) tax has been previously assessed......
d Subtract line 6c from line 6b. Taxable amount —see instructions ...........
e Undistributed income for 2011. Subtract line 4a from line 2a. Taxable amount—see instructions .............
f Undistributed income for 2012. Subtract lines 4d and 5 from line 1. This amount must be distributed in 2013 ..........				0
7 Amounts treated as distributions out of corpus to satisfy requirements imposed by section 170(b)(1)(F) or 4942(g)(3) (see instructions) .............
8Excess distributions carryover from 2007 not applied on line 5 or line 7 (see instructions) ...
9Excess distributions carryover to 2013. Subtract lines 7 and 8 from line 6a ......		21,556
10 Analysis of line 9:
a Excess from 2008....
b Excess from 2009....
c Excess from 2010....
d Excess from 2011....
e Excess from 2012....	21,556

Form 990-PF (2012)

Page 9

Part XIV

Private Operating Foundations (see instructions and Part VII-A, question 9)

1a If the foundation has received a ruling or determination letter that it is a private operating
foundation, and the ruling is effective for 2012, enter the date of the ruling....... bullet

b Check box to indicate whether the organization is a private operating foundation described in section4942(j)(3) or4942(j)(5)

2a Enter the lesser of the adjusted net income from Part I or the minimum investment return from Part X for each year listed ..........	Tax year	Prior 3 years			(e) Total
	(a) 2012	(b) 2011	(c) 2010	(d) 2009	(e) Total

b 85% of line 2a .........
c Qualifying distributions from Part XII, line 4 for each year listed .....
d Amounts included in line 2c not used directly for active conduct of exempt activities ....
e Qualifying distributions made directly for active conduct of exempt activities. Subtract line 2d from line 2c ....
3 Complete 3a, b, or c for the alternative test relied upon:
a “Assets” alternative test—enter:
(1) Value of all assets ......
(2) Value of assets qualifying under section 4942(j)(3)(B)(i)
b “Endowment” alternative test— enter 2⁄3 of minimum investment return shown in Part X, line 6 for each year listed...
c “Support” alternative test—enter:
(1) Total support other than gross investment income (interest, dividends, rents, payments on securities loans (section 512(a)(5)), or royalties) ....
(2) Support from general public and 5 or more exempt organizations as provided in section 4942(j)(3)(B)(iii)....
(3) Largest amount of support from an exempt organization
(4) Gross investment income

Part XV

Supplementary Information (Complete this part only if the organization had $5,000 or more in
assets at any time during the year—see instructions.)

1Information Regarding Foundation Managers:

aList any managers of the foundation who have contributed more than 2% of the total contributions received by the foundation
before the close of any tax year (but only if they have contributed more than $5,000). (See section 507(d)(2).)

bList any managers of the foundation who own 10% or more of the stock of a corporation (or an equally large portion of the
ownership of a partnership or other entity) of which the foundation has a 10% or greater interest.

2Information Regarding Contribution, Grant, Gift, Loan, Scholarship, etc., Programs:

Check here bullet

if the foundation only makes contributions to preselected charitable organizations and does not accept
unsolicited requests for funds. If the foundation makes gifts, grants, etc. (see instructions) to individuals or organizations under
other conditions, complete items 2a, b, c, and d.

aThe name, address, and telephone number or e-mail of the person to whom applications should be addressed:

Caroline Roxanna Montrose
PO BOX S
MENLO PARK,CA940266220
(650) 941-3710

bThe form in which applications should be submitted and information and materials they should include:

Application should be submitted on a one page instruction guide, to be provided upon request. State the purpose of the request, submit a copy of the IRS Determination letter for the organziation requesting the funds, agree to provide a final report or summary of how the funds were used.

cAny submission deadlines:

N/A

dAny restrictions or limitations on awards, such as by geographical areas, charitable fields, kinds of institutions, or other
factors:

Funds must be used to support orphan children.

Form 990-PF (2012)

Page 10

Part XV

Supplementary Information (continued)

3 Grants and Contributions Paid During the Year or Approved for Future Payment
Recipient	If recipient is an individual, show any relationship to any foundation manager or substantial contributor	Foundation status of recipient	Purpose of grant or contribution	Amount
Name and address (home or business)		Foundation status of recipient	Purpose of grant or contribution	Amount
aPaid during the year
Homes for Orphans of Mexican Extrac 2390-C LAS POSAS ROAD 169 Camarillo,CA93010	NONE	EXEMPT	In support of the Ninos de Baja program	20,000
Tres Islas Orphanage Fund 3717 Monroe Avenue Cheyenne,WY82001	NONE	EXEMPT	Provide support for the children of Tres Islas Orphanage	17,500
Children's Hunger Relief Fund 182 FARMERS LANE STE 200 Santa Rosa,CA95405	NONE	EXEMPT	Support of the Fund's Isaac Newton Academy	17,500
Nepalese Youth Opportunity Foundati 3030 Bridgeway SUITE 202 Sausalito,CA94965	NONE	EXEMPT	Support the Foundation's orphanages	20,000
Health Habitat 76 Lee Street Mill Valley,CA94941	NONE	EXEMPT	Support Health & Habitat's orphanage	15,000
100 Friends Project 2140 SHATTUCK AVENUE 2050 BERKELEY,CA94704	NONE	EXEMPT	Support the project's orphanages	20,000
Total ................................. 3a				110,000

bApproved for future payment

Total ................................. 3b

Form 990-PF (2012)

Page 11

Part XVI-A

Analysis of Income-Producing Activities

Enter gross amounts unless otherwise indicated.	Unrelated business income		Excluded by section 512, 513, or 514		(e) Related or exempt function income (See instructions.)
1Program service revenue:	(a) Business code	(b) Amount	(c) Exclusion code	(d) Amount	(e) Related or exempt function income (See instructions.)
a
b
c
d
e
f
gFees and contracts from government agencies
2 Membership dues and assessments....
3Interest on savings and temporary cash investments			14	13,333
4 Dividends and interest from securities....			14	30,939
5 Net rental income or (loss) from real estate:
aDebt-financed property......
bNot debt-financed property.....
6Net rental income or (loss) from personal property
7 Other investment income.....
8Gain or (loss) from sales of assets other than inventory					56,337
9 Net income or (loss) from special events:
10 Gross profit or (loss) from sales of inventory..
11 Other revenue: a
b
c
d
e
12 Subtotal. Add columns (b), (d), and (e)..				44,272	56,337

13Total. Add line 12, columns (b), (d), and (e)..................

13100,609

(See worksheet in line 13 instructions to verify calculations.)

Part XVI-B

Relationship of Activities to the Accomplishment of Exempt Purposes

Line No.	Explain below how each activity for which income is reported in column (e) of Part XVI-A contributed importantly to the accomplishment of the foundation’s exempt purposes (other than by providing funds for such purposes). (See instructions.)

Form 990-PF (2012)

Page 12

Part XVII

Information Regarding Transfers To and Transactions and Relationships With Noncharitable Exempt Organizations

Did the organization directly or indirectly engage in any of the following with any other organization described in section

Yes

501(c) of the Code (other than section 501(c)(3) organizations) or in section 527, relating to political organizations?

Transfers from the reporting foundation to a noncharitable exempt organization of:

(1) Cash...................................

1a(1)

(2) Other assets.................................

1a(2)

Other transactions:

(1) Sales of assets to a noncharitable exempt organization....................

1b(1)

(2) Purchases of assets from a noncharitable exempt organization..................

1b(2)

(3) Rental of facilities, equipment, or other assets.......................

1b(3)

(4) Reimbursement arrangements...........................

1b(4)

(5) Loans or loan guarantees.............................

1b(5)

(6) Performance of services or membership or fundraising solicitations................

1b(6)

Sharing of facilities, equipment, mailing lists, other assets, or paid employees..............

If the answer to any of the above is “Yes,” complete the following schedule. Column (b) should always show the fair market value
of the goods, other assets, or services given by the reporting foundation. If the foundation received less than fair market value
in any transaction or sharing arrangement, show in column (d) the value of the goods, other assets, or services received.

(a) Line No.	(b) Amount involved	(c) Name of noncharitable exempt organization	(d) Description of transfers, transactions, and sharing arrangements

Is the foundation directly or indirectly affiliated with, or related to, one or more tax-exempt organizations
described in section 501(c) of the Code (other than section 501(c)(3)) or in section 527?...........YesNo

If “Yes,” complete the following schedule.

(a) Name of organization	(b) Type of organization	(c) Description of relationship

Sign Here

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer or fiduciary) is based on all information of which preparer has any knowledge.
				May the IRS discuss this return with the preparer shown below (see instr.)? Yes No
	Signature of officer or trustee	Date	Title

Paid Preparer Use Only	Print/Type preparer's name	Preparer's Signature	Date	Check if self- employed	PTIN
	Firm's name Firm's address			Firm's EIN
				Phone no.

Form 990-PF (2012)

Additional Data

Software ID:	12000229
Software Version:	2012v2.0

Form 990PF - Special Condition Description:

Special Condition Description

- TIN:

TY 2012 AccountingFeesSchedule

Name:

CAROLINE AND ROXANNA MONTROSE

EDUCATIONAL FOUNDATION

EIN: 23-7411509

Software ID:12000229

Software Version:2012v2.0

Category	Amount	Net Investment Income	Adjusted Net Income	Disbursements for Charitable Purposes
ACCOUNTING	6,095	3,047	0	3,048

- TIN:

TY 2012 InvestmentsCorpBondsSchedule

Name:

CAROLINE AND ROXANNA MONTROSE

EDUCATIONAL FOUNDATION

EIN: 23-7411509

Software ID:12000229

Software Version:2012v2.0

Name of Bond	End of Year Book Value	End of Year Fair Market Value
50,000 GNR 13-37 HA 2/20/43	48,336	45,970
40,000 WELLS FARGO CO 12/15/16	42,250	41,447
30,000 WELLS FARGO CO 9/15/16	33,828	33,152
GOVERNMENT BONDS - ACCRUED INT PER STMT		130
25,000 GNMA POOL 582177 5/15/32	2,306	2,446
40,000 GNMA POOL 002754 5/20/29	89	732
15,000 GNMA 11-24 TB 10/20/40
19,999 FNR 2003-81 CB 9/25/18
50,000 FNMA 91 12-H SERIES 2/25/21	921	546
25,000 FHR 2957 A 11/15/23
CORPORATE BONDS - ACCRUED INT PER STMT		3,931
15,000 WAL-MART STORES 2/3/14	15,366	15,232
25,000 WAL-MART STORES 4/15/13
25,000 SOUTHERN CALIF EDISON 1/15/14	27,591	25,601
20,000 SANDISK CORP 5/15/13
20,000 PIONEER NATURAL 7/15/16	19,609	22,305
30,000 PROCTER & GAMBLE 8/15/14	33,541	31,498
25,000 PECO ENERGY CO 10/1/14	28,068	26,300
20,000 MCGRAW-HILL COS 11/15/12
25,000 HEWLETT PACKARD 9/15/16	25,751	25,673
50,000 GOLDMAN SACHS GRP 1/12/15	48,631	49,882
50,000 GECC 9/30/15	50,006	49,956
40,000 COCA COLA 3/15/14	43,271	40,874
20,000 BOEING CO 2/15/15	21,551	20,934
25,000 BANK OF NY MELLON 1/16/15	25,984	25,863

- TIN:

TY 2012 InvestmentsCorpStockSchedule

Name:

CAROLINE AND ROXANNA MONTROSE

EDUCATIONAL FOUNDATION

EIN: 23-7411509

Software ID:12000229

Software Version:2012v2.0

Name of Stock	End of Year Book Value	End of Year Fair Market Value
1,000 VODAFONE GP PLC	25,638	28,745
405 STARZ LIBERTY CAPITAL		8,951
85 SEARS CANADA		884
35 LIBERTY INTER CO VEN SER A		2,975
1,000 WELLS FARGO	2,725	41,270
400 VERIZON	2,704	20,136
800 TUPPERWARE	13,784	62,152
200 TIDEWATER INC	10,671	11,394
400 TIDEWATER INC	12,960	22,788
600 DIRECT TV GROUP		36,984
600 SUPERIOR UNIFORM	6,897	6,474
400 SUPERIOR UNIFORM	4,624	4,316
3,000 STEWART ENTERPRISES
400 SPECTRA ENERGY CORP	6,876	13,784
400 SPECTRA ENERGY CORP	6,214	13,784
100 SEARS HOLDING CORP	10,147	4,208
100 SEARS HOLDING CORP	10,863	4,208
1,200 SEAGATE TECHNOLOGY	6,092	53,796
800 ROBBINS MEYERS
1,125 RAYONIER INC	20,451	62,314
400 PFIZER	10,530	11,204
300 PFIZER	7,728	8,403
500 PFIZER	12,582	14,005
700 OWENS ILLINOIS	21,621	19,453
9 ORCHARD SUPPLY HARDWARE - PREFERRED
9 ORCHARD SUPPLY HARDWARE - COMMON
300 NEENA PAPER INC	9,014	9,531
500 NEENA PAPER INC	17,071	15,885
400 MONSANTO CO	3,735	39,520
1,000 MISSION WEST PPTYS INC
500 MERCK & CO	22,457	23,225
105 LIBERTY MEDIA CO LIBERTY CAP A	13,828	13,310
196 LIBERTY MEDIA CO LIBERTY CAP A	3,265	24,845
104 LIBERTY MEDIA CO LIBERTY CAP A	192	13,183
520 LIBERTY INTERACTIVE CO INTER A	15,625	11,965
125 LIBERTY GLOBAL INC CL C		8,486
125 LIBERTY GLBL INC SER A		9,186
500 LANDEC CORP	3,763	6,605
1,500 LANDEC CORP	10,862	19,815
600 KEYCORP NEW	13,137	6,624
333 KEMET CORPORATION	7,406	1,369
500 KEMET CORPORATION	12,838	2,055
800 KAMAN CORP	10,352	27,648
1,000 ISHARES MSCI	65,409	48,380
300 ISHARES MSCI	18,287	14,514
600 HONEYWELL INTERNATIONAL	13,690	47,604
600 HARRIS CORP DELAWARE	9,665	29,550
1,000 HANCOCK FABRICS	4,416	970
2,000 HANCOCK FABRICS	13,036	1,940
1,000 GOODYEAR TIRE	7,729	15,299
400 GENERAL ELECTRIC	6,651	9,276
300 GENERAL ELECTRIC	8,871	6,957
96 FRONTIER COMMUNICATIONS		389
600 EXXON MOBIL	2,293	54,210
266 DUKE ENERGY	8,620	17,955
400 DU PONT EI DE NEMOURS	17,623	21,000
600 DONNELLEY & SONS	15,246	8,406
104 DISCOVERY COMMUNICATIONS SER C		7,256
104 DISCOVERY COMMUNICATIONS SER A		8,033
300 DIEBOLD INC	7,921	10,107
200 DIEBOLD INC	9,349	6,738
300 DIEBOLD INC	12,329	10,107
800 CONAGRA FOODS	17,796	27,944
600 CHEVRON	2,266	71,004
400 BRISTOL MYERS	10,518	17,876
400 BRISTOL MYERS	12,164	17,876
400 BRISTOL MYERS	5,589	17,876
300 BECTON DICKSON	8,662	29,649
149 AVIAT NETWORKS INC		390
662 AT&T	1,764	23,435
578 AT&T	19,483	20,461
222 AT&T	811	7,859
10 ASCENT MEDIA CORP		781
4,500 ALLIANCE INC	26,718	17,100
1,000 ABM INDUSTRIES	14,312	24,510
1,000 ABB LTD	26,922	21,660

- TIN:

TY 2012 OtherExpensesSchedule

Name:

CAROLINE AND ROXANNA MONTROSE

EDUCATIONAL FOUNDATION

EIN: 23-7411509

Software ID:12000229

Software Version:2012v2.0

Description	Revenue and Expenses per Books	Net Investment Income	Adjusted Net Income	Disbursements for Charitable Purposes
RENT, PARKING, UTILITIES	1,144
postage	121
PO BOX RENTAL	249
OFFICE SUPPLIES	195
MEALS	23
INSURANCE	1,861
FILING FEES	45
BANK CHARGES	102

- TIN:

TY 2012 OtherLiabilitiesSchedule

Name:

CAROLINE AND ROXANNA MONTROSE

EDUCATIONAL FOUNDATION

EIN: 23-7411509

Software ID:12000229

Software Version:2012v2.0

Description	Beginning of Year - Book Value	End of Year - Book Value
payroll tax payable	810	1,113

- TIN:

TY 2012 TaxesSchedule

Name:

CAROLINE AND ROXANNA MONTROSE

EDUCATIONAL FOUNDATION

EIN: 23-7411509

Software ID:12000229

Software Version:2012v2.0

Category	Amount	Net Investment Income	Disbursements for Charitable Purposes
payroll tax	726	363	145
FRANCHISE TAX	10
FEDERAL TAXES	1,021