Form990-PF

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 01-01-2012 , and ending 12-31-2012
Name of foundation
BAILEY ENDOWMENT INC
 

Number and street (or P.O. box number if mail is not delivered to street address)PO BOX 208   Room/suite
City or town, state, and ZIP code
SHELBY, NC281510208
A Employer identification number

56-1802700
B Telephone number (see instructions)

(704) 487-8888
C bullet
G Check all that apply:

D 1. bullet
2. bullet
H Check type of organization:
I Fair market value of all assets at end
of year (from Part II, col. (c),
line 16)bullet$1,393,369J Accounting method:
 
(Part I, column (d) must be on cash basis.)
E bullet
F bullet
Part I 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 		(c) Adjusted net
income 		(d) Disbursements
for charitable
purposes
(cash basis only)
Revenue 1 Contributions, gifts, grants, etc., received (attach schedule)  
2 Check bullet
3 Interest on savings and temporary cash investments 155 155 155
4 Dividends and interest from securities...... 43,833 43,833 43,833
5a Gross rents..............      
b Net rental income or (loss)  
6a Net gain or (loss) from sale of assets not on line 10 37,859
b Gross sales price for all assets on line 6a 563,528
7 Capital gain net income (from Part IV, line 2)... 37,859
8 Net short-term capital gain......... 14,547
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)....... Click to see attachment 2,391   2,391
12 Total. Add lines 1 through 11........ 84,238 81,847 60,926
Operating and Administrative Expenses 13 Compensation of officers, directors, trustees, etc.        
14 Other employee salaries and wages......        
15 Pension plans, employee benefits.......        
16a Legal fees (attach schedule).........        
b Accounting fees (attach schedule)....... Click to see attachment 3,150 175    
c Other professional fees (attach schedule).... Click to see attachment 16,726 16,726    
17 Interest...............        
18 Taxes (attach schedule) (see instructions) Click to see attachment 1,883 621    
19 Depreciation (attach schedule) and depletion...      
20 Occupancy..............        
21 Travel, conferences, and meetings.......        
22 Printing and publications..........        
23 Other expenses (attach schedule)....... Click to see attachment 1,292 1,202    
24 Total operating and administrative expenses.
Add lines 13 through 23.......... 23,051 18,724   0
25 Contributions, gifts, grants paid........ 67,300 67,300
26 Total expenses and disbursements. Add lines 24 and 25 90,351 18,724   67,300
27 Subtract line 26 from line 12:
a Excess of revenue over expenses and disbursements -6,113
b Net investment income (if negative, enter -0-) 63,123
c Adjusted net income (if negative, enter -0-)... 60,926
For Paperwork Reduction Act Notice, see instructions.
Cat. No. 11289X Form 990-PF (2012)
Form 990-PF (2012)
Page 2
Part II Balance Sheets Attached schedules and amounts in the description column
should be for end-of-year amounts only. (See instructions.)		 Beginning of year End of year
(a) Book Value (b) Book Value (c) Fair Market Value
Assets 1 Cash—non-interest-bearing...............      
2 Savings and temporary cash investments.......... 114,317 100,785 100,785
3 Accounts receivable bullet  
Less: allowance for doubtful accounts bullet        
4 Pledges receivable bullet  
Less: allowance for doubtful accounts bullet        
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) bullet  
Less: allowance for doubtful accounts bullet        
8 Inventories for sale or use...............      
9 Prepaid expenses and deferred charges........... 11,454 10,192 10,192
10a Investments—U.S. and state government obligations (attach schedule)      
b Investments—corporate stock (attach schedule)........ 1,175,566 Click to see attachment1,184,729 1,256,868
c Investments—corporate bonds (attach schedule)........      
11 Investments—land, buildings, and equipment: basis bullet  
Less: accumulated depreciation (attach schedule) bullet        
12 Investments—mortgage loans..............      
13 Investments—other (attach schedule)........... 26,006 Click to see attachment25,524 25,524
14 Land, buildings, and equipment: basis bullet  
Less: accumulated depreciation (attach schedule) bullet        
15 Other assets (describe bullet)      
16 Total assets (to be completed by all filers—see the
instructions. Also, see page 1, item I) 1,327,343 1,321,230 1,393,369
Liabilities 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 bullet)    
23 Total liabilities (add lines 17 through 22)..........   0
Net Assets or Fund Balances bullet
and complete lines 24 through 26 and lines 30 and 31.
24 Unrestricted....................    
25 Temporarily restricted................    
26 Permanently restricted................    
bullet
and complete lines 27 through 31.
27 Capital stock, trust principal, or current funds.........    
28 Paid-in or capital surplus, or land, bldg., and equipment fund    
29 Retained earnings, accumulated income, endowment, or other funds 1,327,343 1,321,230
30 Total net assets or fund balances (see page 17 of the
instructions).................... 1,327,343 1,321,230
31 Total liabilities and net assets/fund balances (see page 17 of
the instructions).................. 1,327,343 1,321,230
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 1,327,343
2 Enter amount from Part I, line 27a..................... 2 -6,113
3 Other increases not included in line 2 (itemize) bullet 3  
4 Add lines 1, 2, and 3.......................... 4 1,321,230
5 Decreases not included in line 2 (itemize) bullet 5  
6 Total net assets or fund balances at end of year (line 4 minus line 5)—Part II, column (b), line 30. 6 1,321,230
Form 990-PF (2012)
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 ABBOT LABS P 2011-09-16 2012-08-08
b DODGE & COX INCOME FUND P 2011-09-15 2012-07-30
c KIMBALL INTL INC CLASS B P 2011-09-16 2012-09-10
d PHILIP MORRIS INTL INC P 2011-09-16 2012-02-08
e YUMI BRANDS INC COMMON STOCK P 2012-10-19 2012-11-30
UNILEVER N V NEW YORK SHS NEW P 2008-03-20 2012-07-26
AMERICAN INT'L GROUP, INC. P 2012-09-10 2012-09-25
DODGE & COX INCOME FUND P 2011-09-15 2012-08-24
KIMBALL INTL INC CLASS B P 2011-09-16 2012-09-10
PIMCO LOW DURATION FUND P 2011-09-15 2012-07-30
APPACHE CORP COM P 2011-10-27 2012-11-02
VANGUARD REIT ETF P 2011-09-15 2012-11-27
AMERICAN INT'L GROUP, INC. P 2012-08-08 2012-09-25
EUROPACIFIC GROWTH FUND CL F-2 P 2011-09-15 2012-07-30
KIMBALL INTL INC CLASS B P 2011-09-16 2012-09-10
PLUM CREEK TIMBER CO INC P 2011-09-16 2012-09-07
APPACHE CORP COM P 2011-09-16 2012-11-02
YUMI BRANDS INC COMMON STOCK P 2011-09-16 2012-11-30
AMERIPRISE FINANCIAL, INC. P 2011-09-16 2012-05-11
FEDEX CORP P 2011-09-16 2012-04-04
KOHLS CORP P 2011-09-16 2012-05-02
PLUM CREEK TIMBER CO INC P 2011-09-16 2012-09-10
CNO FINL GROUP INC P 2011-10-27 2012-11-08
ANHEUSER BUSCH P 2011-09-16 2012-09-05
FEDEX CORP P 2011-09-16 2012-06-13
LORD ABBETT BOND DEBENTURE FUND A P 2011-09-15 2012-07-30
PNC BANK P 2011-09-16 2012-08-08
CNO FINL GROUP INC P 2011-10-27 2012-11-08
ASG MANAGED FUTURES P 2011-09-20 2012-07-11
JP MORGAN CHASE & CO P 2011-10-27 2012-05-11
LORD ABBETT BOND DEBENTURE FUND A P 2011-09-15 2012-08-22
ROGERS COMMUNICATIONS INC CL B P 2011-09-16 2012-04-25
CNO FINL GROUP INC P 2011-09-16 2012-11-08
BARD C R, INC. P 2011-09-16 2012-07-26
JP MORGAN CHASE & CO P 2011-10-27 2012-05-11
MARVELL TECHNOLOGY GROUP P 2011-09-16 2012-08-20
SLM CORP COMMON STOCK P 2011-11-21 2012-11-19
COMCAST CORP CL A P 2011-09-16 2012-10-02
BLACKROCK INFL PROT BD - A P 2011-09-15 2012-07-30
JP MORGAN CHASE & CO P 2011-09-16 2012-05-11
MCDONALDS CORP P 2012-09-05 2012-10-19
SPECTRA ENERGY CORP P 2011-09-16 2012-04-18
DODGE & COX INCOME FUND P 2011-09-15 2012-11-27
CENTURYTEL, INC. P 2012-05-11 2012-11-30
JOY GLOBAL, INC. P 2011-10-27 2012-08-24
MDU RES GROUP, INC. P 2011-09-16 2012-02-01
STARBUCKS CORP P 2011-09-16 2012-07-27
EXXON MOBIL CORPORATION P 2011-02-23 2012-04-04
CHIMERA INVT. CORP P 2011-09-16 2012-09-07
JOY GLOBAL, INC. P 2011-09-16 2012-08-24
MDU RES GROUP, INC. P 2011-09-16 2012-02-02
TELECOM CORP NEW ZEALAND LTD SPONSOR P 2011-09-16 2012-06-29
ISHARES TRUST S&P 400 MIDCAP ETF P 2011-09-15 2012-10-12
CHORUS LTD SPONSORED ADR P 2011-09-16 2012-02-08
JP MORGAN CHASE & CO ALERIAN MLP IND P 2011-09-16 2012-02-07
MEDCO HEALTH SOLUTIONS P 2011-09-16 2012-03-09
TELEFONICA BRASIL SA SPONSORED ADR P 2011-09-16 2012-02-07
JP MORGAN CHASE & CO ALERIAN MLP IND P 2011-09-16 2012-10-09
COMCAST CORP CL A P 2011-09-16 2012-08-15
JP MORGAN CHASE & CO ALERIAN MLP IND P 2012-06-28 2012-10-09
MOODYS CORP COMMON P 2011-10-27 2012-07-26
VANGUARD REIT ETF P 2011-09-15 2012-08-22
JP MORGAN CHASE & CO ALERIAN MLP IND P 2011-09-16 2012-10-10
DEERE & CO P 2011-12-06 2012-08-15
KELLOGG CO P 2011-09-16 2012-04-26
NATIONAL HEALTH INVS INC P 2011-09-16 2012-02-07
WALTERS INDS INC P 2011-09-16 2012-07-06
KRAFT FOODS GROUP INC P 2011-09-16 2012-10-18
DEERE & CO P 2011-12-06 2012-08-15
KELLOGG CO P 2011-09-16 2012-04-26
NATIONAL-OILWELL INC COM P 2011-09-16 2012-02-26
WELLPOINT INC P 2011-09-16 2012-08-08
LORD ABBETT BOND DEBENTURE FUND A P 2011-09-15 2012-10-12
DIGITAL REALTY TR, INC. P 2011-10-19 2012-02-07
KIMBALL INTL INC CLASS B P 2011-09-16 2012-09-07
NAVISTAR INTL CORP NEW COM P 2012-04-04 2012-07-06
WELLS FARGO COMPANY P 2012-05-11 2012-10-17
MONDELEZ INTL INC COM P 2011-09-16 2012-10-09
(e) Gross sales price (f) Depreciation allowed
(or allowable) 		(g) Cost or other basis
plus expense of sale 		(h) Gain or (loss)
(e) plus (f) minus (g)
a 6,338   4,956 1,382
b 54,356   52,979 1,377
c 2,266   937 1,329
d 5,713   5,099 614
e 1,888   1,965 -77
1,470   1,403 67
1,486   1,481 5
15,150   14,766 384
2,117   874 1,243
37,513   36,910 603
1,633   2,013 -380
22,266   19,538 2,728
1,284   1,224 60
36,607   35,645 962
142   59 83
2,843   2,560 283
1,469   1,765 -296
6,337   5,078 1,259
3,244   2,904 340
1,355   1,153 202
3,123   2,984 139
2,013   1,818 195
970   734 236
1,465   886 579
3,537   3,150 387
37,865   36,238 1,627
5,468   4,679 789
428   313 115
12,653   14,533 -1,880
851   841 10
10,146   9,637 509
2,600   2,729 -129
3,968   2,788 1,180
2,745   2,563 182
333   325 8
2,831   4,172 -1,341
3,295   2,448 847
5,907   3,770 2,137
64,571   61,460 3,111
5,328   4,926 402
5,590   5,624 -34
2,700   2,339 361
7,109   6,865 244
4,021   4,137 -116
1,112   1,850 -738
2,765   2,717 48
5,425   4,543 882
2,710   2,859 -149
2,236   2,614 -378
2,002   2,961 -959
1,897   1,874 23
3,128   2,741 387
55,280   48,773 6,507
920   844 76
361   318 43
3,022   2,196 826
305   328 -23
2,760   2,364 396
1,191   800 391
947   864 83
1,612   1,454 158
10,903   9,237 1,666
21,712   18,774 2,938
1,957   2,046 -89
2,821   3,017 -196
300   281 19
1,766   3,530 -1,764
31   24 7
527   548 -21
1,710   1,832 -122
2,004   1,857 147
2,363   2,833 -470
16,726   15,670 1,056
354   294 60
1,472   610 862
1,894   2,911 -1,017
5,723   5,506 217
3,986   3,331 655
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       1,382
b       1,377
c       1,329
d       614
e       -77
      67
      5
      384
      1,243
      603
      -380
      2,728
      60
      962
      83
      283
      -296
      1,259
      340
      202
      139
      195
      236
      579
      387
      1,627
      789
      115
      -1,880
      10
      509
      -129
      1,180
      182
      8
      -1,341
      847
      2,137
      3,111
      402
      -34
      361
      244
      -116
      -738
      48
      882
      -149
      -378
      -959
      23
      387
      6,507
      76
      43
      826
      -23
      396
      391
      83
      158
      1,666
      2,938
      -89
      -196
      19
      -1,764
      7
      -21
      -122
      147
      -470
      1,056
      60
      862
      -1,017
      217
      655
2 Capital gain net income or (net capital loss) Bracket If gain, also enter in Part I, line 7
If (loss), enter -0- in Part I, line 7		 Bracket 2 37,859
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 . . . . . . . . . . . . . . . . 		Bracket 3 14,547
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?
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 71,200 1,476,305 0.048229
2010 59,050 1,357,932 0.043485
2009 76,151 1,186,800 0.064165
2008 75,670 1,585,264 0.047733
2007 70,210 1,765,258 0.039773
2 Total of line 1, column (d) ...................... 2 0.243385
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 0.048677
4 Enter the net value of noncharitable-use assets for 2012 from Part X, line 5..... 4 1,382,432
5 Multiply line 4 by line 3....................... 5 67,293
6 Enter 1% of net investment income (1% of Part I, line 27b)........... 6 631
7 Add lines 5 and 6......................... 7 67,924
8 Enter qualifying distributions from Part XII, line 4.............. 8 67,300
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)
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 Bulletand enter “N/A” on line 1. Bracket
Date of ruling or determination letter:   (attach copy of letter if necessary–see instructions)
b 1 1,262
hereBulletand 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 1,262
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 1,262
6 Credits/Payments:
a 2012 estimated tax payments and 2011 overpayment credited to 2012 6a 11,454
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 11,454
8 Enter any penalty for underpayment of estimated tax. if Form 2220 is attached. 8  
9 Tax due. If the total of lines 5 and 8 is more than line 7, enter amount owed.......Bullet 9  
10 Overpayment. If line 7 is more than the total of lines 5 and 8, enter the amount overpaid...Bullet 10 10,192
11 Enter the amount of line 10 to be: Credited to 2013 estimated taxBullet10,192 Refunded Bullet 11  
Part VII-A
Statements Regarding Activities
1a
During the tax year, did the foundation attempt to influence any national, state, or local legislation or did
Yes
No
it participate or intervene in any political campaign? ....................
1a
 
No
b
Did it spend more than $100 during the year (either directly or indirectly) for political purposes (see page 19 of
the instructions for definition)?............................
1b
 
No
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.
c
Did the foundation file Form 1120-POL for this year?.....................
1c
 
No
d
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$  
e
Enter the reimbursement (if any) paid by the foundation during the year for political expenditure tax imposed
on foundation managers.bullet$  
2
Has the foundation engaged in any activities that have not previously been reported to the IRS?.......
2
 
No
If “Yes,” attach a detailed description of the activities.
3
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....
3
 
No
4a
Did the foundation have unrelated business gross income of $1,000 or more during the year?........
4a
 
No
b
If “Yes,” has it filed a tax return on Form 990-T for this year?...................
4b
 
 
5
Was there a liquidation, termination, dissolution, or substantial contraction during the year?.........
5
 
No
If “Yes,” attach the statement required by General Instruction T.
6
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?................
    6
    Yes
     
    7
    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.
    7
    Yes
     
    8a
    Enter the states to which the foundation reports or with which it is registered (see instructions)
    bulletNC
    b
    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 .
    8b
    Yes
     
    9
    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.............................
    9
     
    No
    10
    Did any persons become substantial contributors during the tax year? If “Yes,” attach a schedule listing their names and addresses.
    10
     
    No
    11
    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) .............
    11
     
    No
    12
    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).................
    12
     
    No
    13
    Did the foundation comply with the public inspection requirements for its annual returns and exemption application?
    13
    Yes
     
    Website addressbulletN/A
    14
    The books are in care ofbulletHOYT Q BAILEY Telephone no.bullet (704) 487-8888
    Located atbullet415 POLKVILLE ROADSHELBYNC ZIP+4bullet28150
    15
    Section 4947(a)(1) nonexempt charitable trusts filing Form 990-PF in lieu of Form 1041.........bullet
    and enter the amount of tax-exempt interest received or accrued during the year ......bullet
    15  
    16
    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? .................
    16
     
    No
    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)
    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
    No
    1a
    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?
    (2) Borrow money from, lend money to, or otherwise extend credit to (or accept it from)
    a disqualified person?.........................
    (3) Furnish goods, services, or facilities to (or accept them from) a disqualified person?
    (4) Pay compensation to, or pay or reimburse the expenses of, a disqualified person?
    (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)?.................
    (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.).........
    b
    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)?...
    1b
     
     
    .........bullet
    c
    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?.............
    1c
     
     
    2
    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)):
    a
    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?...............
    If “Yes,” list the years bullet20, 20, 20, 20
    b
    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.) ..............
    2b
     
     
    c
    If the provisions of section 4942(a)(2) are being applied to any of the years listed in 2a, list the years here.
    bullet20, 20, 20, 20
    3a
    Did the foundation hold more than a 2% direct or indirect interest in any business enterprise at
    any time during the year?.........................
    b
    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.)....................
    3b
     
     
    4a
    Did the foundation invest during the year any amount in a manner that would jeopardize its charitable purposes?
    4a
     
    No
    b
    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?
    4b
     
    No
    5a
    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))?
    (2) Influence the outcome of any specific public election (see section 4955); or to carry
    on, directly or indirectly, any voter registration drive?...............
    (3) Provide a grant to an individual for travel, study, or other similar purposes?
    (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)........
    (5) Provide for any purpose other than religious, charitable, scientific, literary, or
    educational purposes, or for the prevention of cruelty to children or animals?........
    b
    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)? ......
    5b
     
     
    .........bullet
    c
    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?............
    If “Yes,” attach the statement required by Regulations section 53.4945–5(d).
    6a
    Did the foundation, during the year, receive any funds, directly or indirectly, to pay premiums on
    a personal benefit contract?........................
    b
    Did the foundation, during the year, pay premiums, directly or indirectly, on a personal benefit contract?....
    6b
     
    No
    If “Yes” to 6b, file Form 8870.
    7a
    At any time during the tax year, was the foundation a party to a prohibited tax shelter transaction?
    b
    If yes, did the foundation receive any proceeds or have any net income attributable to the transaction? ....
    7b
     
     
    Form 990-PF (2012)
    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
    HOYT G TESSNERClick to see attachment PRESIDENT
    2.00     		0 0 0
    2105 PRESCOTT PLACE
    RALEIGH,NC27615
    MELANIE KNIGHTClick to see attachment VP
    1.00     		0 0 0
    4017 LAKE POINT CIRCLE
    RALEIGH,NC27606
    CYNTHIA BUCKINGHAMClick to see attachment VP
    1.00     		0 0 0
    7540 DRAYTON COURT
    RALEIGH,NC27615
    HOYT Q BAILEYClick to see attachment DIRECTOR
    4.00     		0 0 0
    27 E RANDOLPH ST
    SHELBY,NC28150
    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...................bullet  
    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)
    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 N/A  
    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.)
    1
    Fair market value of assets not used (or held for use) directly in carrying out charitable, etc.,
    purposes:
    a
    Average monthly fair market value of securities...................
    1a
    1,258,928
    b
    Average of monthly cash balances.......................
    1b
    107,337
    c
    Fair market value of all other assets (see instructions)................
    1c
    37,219
    d
    Total (add lines 1a, b, and c).........................
    1d
    1,403,484
    e
    Reduction claimed for blockage or other factors reported on lines 1a and
    1c (attach detailed explanation) .............
    1e
     
    2
    Acquisition indebtedness applicable to line 1 assets..................
    2
     
    3
    Subtract line 2 from line 1d.........................
    3
    1,403,484
    4
    Cash deemed held for charitable activities. Enter 1 1⁄2% of line 3 (for greater amount, see
    instructions) .............................
    4
    21,052
    5
    Net value of noncharitable-use assets. Subtract line 4 from line 3. Enter here and on Part V, line 4
    5
    1,382,432
    6
    Minimum investment return. Enter 5% of line 5..................
    6
    69,122
    Part XI
    Distributable Amount bullet and do not complete this part.)
    1
    Minimum investment return from Part X, line 6....................
    1
    69,122
    2a
    Tax on investment income for 2012 from Part VI, line 5......
    2a
    1,262
    b
    Income tax for 2012. (This does not include the tax from Part VI.)...
    2b
     
    c
    Add lines 2a and 2b............................
    2c
    1,262
    3
    Distributable amount before adjustments. Subtract line 2c from line 1............
    3
    67,860
    4
    Recoveries of amounts treated as qualifying distributions................
    4
     
    5
    Add lines 3 and 4............................
    5
    67,860
    6
    Deduction from distributable amount (see instructions).................
    6
     
    7
    Distributable amount as adjusted. Subtract line 6 from line 5. Enter here and on Part XIII,
    line 1................................
    7
    67,860
    Part XII
    Qualifying Distributions (see instructions)
    1
    Amounts paid (including administrative expenses) to accomplish charitable, etc., purposes:
    a
    Expenses, contributions, gifts, etc.—total from Part I, column (d), line 26 ..........
    1a
    67,300
    b
    Program-related investments—total from Part IX-B..................
    1b
     
    2
    Amounts paid to acquire assets used (or held for use) directly in carrying out charitable, etc.,
    purposes...............................
    2
     
    3
    Amounts set aside for specific charitable projects that satisfy the:
    a
    Suitability test (prior IRS approval required)....................
    3a
     
    b
    Cash distribution test (attach the required schedule) .................
    3b
     
    4
    Qualifying distributions. Add lines 1a through 3b. Enter here and on Part V, line 8, and Part XIII, line 4
    4
    67,300
    5
    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).................
    5
     
    6
    Adjusted qualifying distributions. Subtract line 5 from line 4..............
    6
    67,300
    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)
    Form 990-PF (2012)
    Page 8
    Part XIII
    Undistributed Income (see instructions)
    (a)
    Corpus     		(b)
    Years prior to 2011     		(c)
    2011     		(d)
    2012
    1 Distributable amount for 2012 from Part XI, line 7 67,860
    2 Undistributed income, if any, as of the end of 2012:
    a Enter amount for 2011 only....... 67,951
    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: bullet$ 67,300
    a Applied to 2011, but not more than line 2a 67,300
    b Applied to undistributed income of prior years
    (Election required—see instructions)......     		 
    c Treated as distributions out of corpus (Election
    required—see instructions).........     		 
    d Applied to 2012 distributable amount.....  
    e Remaining amount distributed out of corpus  
    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  
    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 .............     		651
    f Undistributed income for 2012. Subtract
    lines 4d and 5 from line 1. This amount must
    be distributed in 2013 ..........     		67,860
    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 ......     		 
    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....  
    Form 990-PF (2012)
    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 section or
    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
             
    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
    aThe name, address, and telephone number or e-mail of the person to whom applications should be addressed:
    HOYT Q BAILEY
    PO BOX 208
    SHELBY,NC281810208
    (704) 487-8888
    bThe form in which applications should be submitted and information and materials they should include:
    APPLICATIONS MUST BE WRITTEN, MUST INCLUDE EVIDENCE THAT THE RECEPIENT IS AN EXEMPT CHARTIABLE ORGANIZATION AND FACTS TO SUPPORT THE NEED.
    cAny submission deadlines:
    NONE
    dAny restrictions or limitations on awards, such as by geographical areas, charitable fields, kinds of institutions, or other
    factors:
    NONE
    Form 990-PF (2012)
    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)
    aPaid during the year
    ROTARY CLUB OF SHELBY FOUNDATION
    PO BOX 2861
    SHELBY,NC28151     		  501(C)3 CHILDRENS PROGRAMS 800
    AMERICAN STUDIES CENTER
    PO BOX 96848
    WASHINGTON,DC20090     		  501(C)3 FREEDOM OF SPEECH 100
    SPECIAL OLYMPICS
    2200 GATEWAY CENTRE BLVD
    MORRISVILLE,NC27560     		  501(C)3 HANDICAPPED 50
    FREETOM CENTER
    PO BOX 130707
    HOUSTON,TX77219     		  501(C)3 FREEDOM OF SPEECH 140
    HOSPICE OF CLEVELAND COUNTY
    WENDOVER DRIVE
    SHELBY,NC28150     		  501(C)3 ONGOING PROGRAM 100
    NC STATE UNIVERSITY SCHOLARSHIP PRO
    PO BOX 7302
    RALEIGH,NC27695     		  501(C)3 STUDENT ASSISTANCE 2,000
    MEDIA RESEARCH CENTER
    PO BOX 97040
    WASHINGTON,DC20090     		  501(C)3 MEDIA RESEARCH 100
    JUDICAL WATCH
    425 3RD ST SW
    WASHINGTON,DC20024     		  501(C)3 HONESTY IN ELECTIONS 100
    FEED THE CHILDREN
    PO BOX 36
    OKLAHOMA CITY,OK73101     		  501(C)3 FEED THE POOR 50
    ALLIANCE DEFENSE FUND
    15100 90TH STREET
    SCOTTSDALE,AZ85260     		  501(C)3 DEFENSE OF FREEDOM 100
    FIRST BAPTIST CHURCH
    120 N LAFAYETTE STREET
    SHELBY,NC28150     		  501(C)3 MEMORIAL GIFT 200
    NC SHERIFFS ASSOC
    PO BOX 20049
    RALEIGH,NC27690     		  501(C)3 PROGRAM 100
    NC STATE STUDENT AID ASSN
    PO BOX 37100
    RALEIGH,NC27627     		  501(C)3 ONGOING PROGRAM 11,250
    KINGS MTN FAMILY YMCA
    211 CLEVELAND AVE
    KINGS MOUNTAIN,NC28086     		  501(C)3 PROGRAM 100
    WORD OF FAITH MINISTRY
    207 OLD FLYN RD
    SPINDALE,NC28160     		  501(C)3 ONGOING PROGRAM 100
    LAFAYETTE STREET UMC
    1420 LAFAYETTE ST
    SHELBY,NC28150     		  501(C)3 MISSIONS 100
    BURNS HIGH SCHOOL
    307 E STAGEWACH RD
    LAWNDALE,NC28090     		  501(C)3 SCHOLARSHIP FUND 500
    ENLOE HIGH SCHOOL BAND BOOSTERS
    3105 HIKING TRAIL
    RALEIGH,NC27615     		  501(C)3 INSTRUMENTS 1,400
    AMERICAN CONSERVATIVE UNION
    PO BOX 96090
    WASHINGTON,DC20090     		  501(C)3 PROGRAM 100
    ARBOR DAY FOUNDATION
    100 ARBOR AVE
    NEBRASKA CITY,NE68410     		  501(C)3 PROGRAM 100
    SENIOR CENTER
    100 TR HARRIS DRIVE
    SHELBY,NC28150     		  501(C)3 SENIOR PROGRAM 100
    CLEVELAND COUNTY RESCUE MISSION
    PO BOX 1272
    SHELBY,NC28151     		  501(C)3 PROGRAM 100
    AMERICAN FAMILY ASSN
    DRAWER 2440
    TUPELO,MS38803     		  501(C)3 PROGRAM 300
    PARALYZED VETERANS OF AMERICA
    7 MILL BROOK RD
    WILTON,NH03086     		  501(C)3 VETERANS PROGRAMS 200
    GODS WORD TO THE NATION
    PO BOX 400
    ORANGE PARK,FL32067     		  501(C)3 GODS WORD 50
    MISSIONARY O'BLATES
    PO BOX 23600
    BELLEVILLE,IL62223     		  501(C)3 HEALING 50
    CLEVELAND COUNTY YOUNG LIFE
    PO BOX 1757
    SHELBY,NC28151     		  501(C)3 YOUTH WORK 200
    SPCA INTERNATIONAL
    PO BOX 92240
    WASHINGTON,DC20077     		  501(C)3 ANIMAL SAFETY 50
    CLEVELAND COUNTY HUMANE SOCIETY
    1609 E MARION ST
    SHELBY,NC28150     		  501(C)3 ANIMALS 2,500
    NOAH'S ARK WILDLIFE CENTER INC
    PO BOX 136
    SANDY RIDGE,NC27046     		  501(C)3 CARE OF WILDLIFE 1,000
    NAACP
    108 W WAREN ST
    SHELBY,NC28150     		  501(C)3 OPERATIONS 2,500
    EMPTY STOCKING FUND
    315 E GRAHAM ST
    SHELBY,NC28150     		  501(C)3 THE NEEDY 8,000
    TEXAS STATE UNIVERSITY
    601 UNIVERSITY DRIVE
    SAN MARCOS,TX78666     		  501(C)3 SCHOLARSHIPS 10,000
    ST JOSEPH'S INDIAN SCHOOL
    1301 N MAIN ST
    CHAMBERLAIN,SD57326     		  501(C)3 OPERATIONS 100
    BROTHERS IN CHRIST OUTREACH MINISTR
    PO BOX 1264
    SHELBY,NC28151     		  501(C)3 NEEDY 5,000
    RURAL EXPERIANCES OFR YOUTH
    4 SUMTER ST
    SHELBY,NC28150     		  501(C)3 BOYS CLUB KIDS 1,000
    CREST HIGH SCHOOL FFA
    800 OLD BURLING SPA ROAD
    SHELBY,NC28152     		  501(C)3 FUTURE FARMERS OF AMERICA 1,500
    THE NAVIGATORS
    PO BOX 6000
    COLORADO SPRINGS,CO80934     		  501(C)3 ONGOING PROGRAM 100
    AMERICAN BIBLE SOCIETY
    PO BOX 96812
    WASHINGTON,DC20090     		  501(C)3 OPERATIONS 100
    SAINT COLUMBIA CHURCH
    5307 N PALM STREET
    FRESNO,CA93704     		  501(C)3 MEMORIAL GIFT 500
    FIRST BAPTIST CHURCH OF LAWNDALE NC
    129 DOUGLAS STREET
    LAWNDALE,NC28090     		  501(C)3 THE NEEDY 1,500
    REV K RAY HILL MINISTRIES
    PO BOX 25442
    RALEIGH,NC27611     		  501(C)3 MINISTRY OPERATIONS 5,000
    THE SALVATION ARMY
    PO BOX 76464
    SHELBY,NC28151     		  501(C)3 THE NEEDY 1,000
    WILDLIFE WELFARE INC
    PO BOX 19432
    RALEIGH,NC27619     		  501(C)3 ANIMAL CARE 1,000
    HELPING HANDS MISSION
    623 ROCK QUARY ROAD
    RALEIGH,NC27610     		  501(C)3 NEEDY 1,000
    INTERFAITH FOOD SHUTTLE
    PO BOX 14638
    RALEIGH,NC27620     		  501(C)3 FOOD FOR NEEDY 1,000
    PENLAND SCHOOL OF CRAFTS
    PO BOX 37
    PENLAND,NC28765     		  501(C)3 ANNUAL GIVING 500
    PIEDMONT COUNCIL BOY SCOUTS OF AMER
    PO BOX 1059
    GASTONIA,NC28053     		  501(C)3 ANNUAL DRIVE 2,000
    BOYS & GIRLS CLUB OF CLEVELAND COUN
    PO BOX 2001
    SHELBY,NC28151     		  501(C)3 PROGRAM 460
    WORLD WAR II VETERANS CONFERENCE
    PO BOX 96543
    WASHINGTON,DC20090     		  501(C)3 EXPENSES 200
    NC STATE SCHOOL OF TEXTILES
    CAMPUS BOX 7474
    RALEIGH,NC27695     		  501(C)3 SCHOLARSHIPS 2,500
    ADOPT A PLATOON
    PO BOX 5038
    HAGESTOWN,MD21741     		  501(C)3 OUR TROOPS 200
    RADIO AMERICA
    PO BOX 26848
    WASHINGTON,DC20077     		  501(C)3 EQUAL REPORTING 100
    Total .................................bullet 3a 67,300
    bApproved for future payment
    Total .................................bullet 3b  
    Form 990-PF (2012)
    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
    a
    b
    c
    d
    e
    f
    gFees and contracts from government agencies          
    2 Membership dues and assessments....          
    3Interest on savings and temporary cash investments     14 155  
    4 Dividends and interest from securities....     14 43,833  
    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     14 37,859  
    9 Net income or (loss) from special events:          
    10 Gross profit or (loss) from sales of inventory..          
    11 Other revenue: aBELMONT 1 - US 321/74 BYPASS     16 11  
    bFIFTH THIRD INVESTMENT ACCT     14 2,380  
    c
    d
    e
    12 Subtotal. Add columns (b), (d), and (e)..   84,238  
    13Total. Add line 12, columns (b), (d), and (e)..................
    1384,238
    (See worksheet in line 13 instructions to verify calculations.)
    Part XVI-B
    Relationship of Activities to the Accomplishment of Exempt Purposes
    Line No.
    DownArrow     		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)
    Form 990-PF (2012)
    Page 12
    Part XVII
    Information Regarding Transfers To and Transactions and Relationships With Noncharitable Exempt Organizations
    1
    Did the organization directly or indirectly engage in any of the following with any other organization described in section
    Yes
    No
    501(c) of the Code (other than section 501(c)(3) organizations) or in section 527, relating to political organizations?
    a
    Transfers from the reporting foundation to a noncharitable exempt organization of:
    (1) Cash...................................
    1a(1)
     
    No
    (2) Other assets.................................
    1a(2)
     
    No
    b
    Other transactions:
    (1) Sales of assets to a noncharitable exempt organization....................
    1b(1)
     
    No
    (2) Purchases of assets from a noncharitable exempt organization..................
    1b(2)
     
    No
    (3) Rental of facilities, equipment, or other assets.......................
    1b(3)
     
    No
    (4) Reimbursement arrangements...........................
    1b(4)
     
    No
    (5) Loans or loan guarantees.............................
    1b(5)
     
    No
    (6) Performance of services or membership or fundraising solicitations................
    1b(6)
     
    No
    c
    Sharing of facilities, equipment, mailing lists, other assets, or paid employees..............
    1c
     
    No
    d
    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
    2a
    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?...........
    b
    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.
    Bullet Bullet
    May the IRS discuss this return
    with the preparer shown below
    (see instr.)?
    Signature of officer or trustee Date Title
    Paid Preparer Use Only Print/Type preparer's name Preparer's Signature Date PTIN
    Firm's namebullet



    Firm's addressbullet







         		Firm's EINbullet
    Phone no.
    Form 990-PF (2012)
    Additional Data


    Software ID:  
    Software Version:  


    Form 990PF - Special Condition Description:
    Special Condition Description

    TY 2012 AccountingFeesSchedule
    Name:
    BAILEY ENDOWMENT INC
    EIN: 56-1802700
    Category Amount Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    TAX PREPARATION FEES 3,150 175    

    TY 2012 CompensationExplanation
    Name:
    BAILEY ENDOWMENT INC
    EIN: 56-1802700
    Person Name Explanation
    HOYT G TESSNER  
    MELANIE KNIGHT  
    CYNTHIA BUCKINGHAM  
    HOYT Q BAILEY  

    TY 2012 InvestmentsCorpStockSchedule
    Name:
    BAILEY ENDOWMENT INC
    EIN: 56-1802700
    Name of Stock End of Year Book Value End of Year Fair Market Value
    DODGE & COX INCOME FD 109,632 112,890
    GLOBAL X FDS GLB X CDA PFD 2,833 2,784
    LORD ABBETT BD DEB FD    
    MFS GOVT MKTS INCOME TR 3,320 3,309
    PIMCO TOTAL RETURN FUND 95,012 93,270
    PIMCO LOW DURATION FUND    
    OPPENHEIMER INTL BD FD CL Y 20,539 20,602
    TWC FDS INC 20,556 20,579
    HOTCHKIS & WILEY FUNDS 54,506 56,479
    BLACKROCK INFL PROT BD    
    ISHARES S&P PFD STK INDX FN 34,192 34,786
    MARVELL TECHNOLOGY GROUP    
    NOBLE CORP 2,578 2,437
    AFLAC INC 2,772 2,868
    AT&T INC 4,898 5,731
    ABBOTT LABS    
    AGILENT TECHNOLOGIES, INC. 2,798 2,825
    AMERICAN INTL GROUP INC 8,559 9,107
    AMERIPRISE FINANCIAL, INC.    
    APACHE CORP    
    APPLE INC 7,968 10,643
    BOEING CO 4,241 4,446
    BARD C R INC    
    BRISTOL MYERS SQUIBB CO 6,983 7,039
    CAPITAL ONE FINL CORP 3,707 4,808
    CENTURYTEL INC 4,829 5,633
    CHEVRON CORP 5,781 6,272
    COACH INC 5,700 4,274
    COCA COLA CO 5,286 5,365
    COMCAST CORP    
    DANAHER CORP 5,752 5,814
    DEERE & CO    
    DU PONT E I DE NEMOURS & CO 6,952 6,612
    EATON VANCE TAX MAN GLBL BR 4,326 4,276
    EXXON MOBIL CORP    
    FEDEX CORP    
    GENERAL ELECTRIC CO 2,786 2,834
    GENUINE PARTS CO 6,657 7,757
    GILEAD SCIENCES INC 4,936 8,961
    GOOGLE INC 6,549 8,489
    HONEYWELL INTL INC 13,464 15,360
    IBM 6,833 7,662
    JP MORGAN CHASE & CO 5,728 6,024
    KELLOGG CO    
    KIMBERLY CLARK CORP 8,458 10,300
    KOHLS CORP    
    KRAFT FOODS INC 1,763 2,183
    LOCKHEED MARTIN CORP 5,137 6,276
    LORILLARD INC 7,872 7,934
    MASTERCARD INC 6,988 9,826
    MCKESSON CORP 3,206 4,072
    MEDCO HEALTH SOLUTIONS INC    
    MEDTRONIC INC 4,594 5,415
    MERCK & CO INC 5,360 6,632
    MICROSOFT CORP 3,288 2,885
    MONDELEZ INTL INC 2,761 2,723
    MOODYS CORP 3,439 5,233
    MYLAN INC 4,802 6,368
    NATIONAL-OILWELL INC 3,846 3,964
    NORFOLK SOUTHERN CORP 5,632 4,947
    NORTHEAST UTILS 2,712 3,009
    OCCIDENTAL PETE CORP 8,475 7,431
    ORACLE CORP 3,670 4,198
    PNC FINANCIAL SERVICES GROUP    
    PFIZER INC 7,356 9,154
    PHILIP MORRIS INTL INC    
    RAYTHEON CO 5,141 7,022
    SBA COMMUNICATIONS CORP 2,829 2,910
    SLM CORP    
    SANDISK CORP 4,386 4,437
    SCHLUMBERGER LTD 6,395 5,960
    SPECTRA ENERGY CORP    
    STARBUCKS CORP    
    TJX COS INC NEW 2,770 2,674
    TORTOISE ENERGY INFRASTRUCTURE CORP 20,737 21,451
    UNITEDHEALTH GROUP 4,188 4,339
    VERIZON COMMUNICATIONS 4,013 4,457
    WALGREEN CO 5,611 5,959
    WELLPOINT INC    
    YUM BRANDS INC    
    ALLIANT CORP 6,742 7,377
    AMERICAN CAP LTD 5,561 5,710
    ATMEL CORP 4,681 2,974
    CNO FINL GROUP INC    
    EAST WEST BANCORP INC 4,685 5,888
    F5 NETWORKS INC 3,902 4,177
    GATX CORP 5,755 6,928
    HERCULES TECHNOLOGY GROWTH 4,441 5,187
    ISHARES CORE S&P MIDCAP ETF 13,428 15,764
    ISHARES S&P MIDCAP 400    
    JOY GLOBAL INC    
    KIMBALL INTL INC    
    MDU RES GROUP INC    
    MICROCHIP TECHNOLOGY INC 8,388 7,919
    OLIN CORP 8,822 9,651
    PACKAGING CORP OF AMERICA 6,989 10,002
    PULTE GROUP INC 3,631 3,541
    ROCKWOOD HLDGS INC 4,843 4,748
    T ROWE PRICE SMALL CAP 37,350 39,169
    TUPPERWARE BRANDS CORPORATION 6,222 6,410
    WALTER ENERGY INC    
    WINDSTREAM CORP 5,504 3,511
    ALLIED WORLD ASSURANCE ADR 7,104 7,092
    ANHEUSER BUSCH INBEV 3,388 5,682
    CHORUS LTD    
    EUROPACIFIC GROWTH FD 39,390 44,154
    ROGERS COMMUNICATIONS INC    
    TELECOM CORP NEW ZEALAND LTD    
    UNILEVER 3,948 4,634
    BANCO LATINOAMERICAN DE COMERCIO EXT 5,841 7,266
    OPPENHEIMER DVLPING MKTS 49,802 55,006
    TELEFONICA BRASIL 7,120 5,750
    ALERIAN MLP ETF 25,014 23,765
    POWERSHARES EXCHANGE-TRADED FD 7,357 7,369
    ABSOLUTE STRATEGIES FUND-I 54,513 53,594
    MAINSTAY FDS TR 32,306 32,615
    JPMORGAN CHASE & CO ALERIAN MLP INDE    
    ASG MANAGED FUTURES STRAG FD    
    PIMCO ALL ASSET ALL AUTH FUND 60,827 63,579
    AQR FDS RISK PARITY FD CL I 53,475 53,509
    AMERICAN CAMPUS CMNTYS INC 6,323 7,381
    AMERICAN CAP AGY CORP 3,649 3,526
    ANNALY CAPITAL MANAGEMENT INC 4,310 3,370
    CHIMERA INVT CORP    
    DIGITAL RLTY TR INC 6,293 7,264
    HOSPITALITY PPTYS TR 6,395 6,604
    LTC PPTYS INC 4,780 6,053
    NATIONAL HEALTH INVS INC 6,267 7,575
    OMEGA HEALTHCARE INVS INC 6,277 9,015
    PLUM CREEK TIMBER CO INC    
    RAYONIER INC 6,438 8,396
    REALTY INCOME CORP 3,673 4,262
    VANGUARD REIT ETF 33,193 38,756

    TY 2012 InvestmentsOtherSchedule2
    Name:
    BAILEY ENDOWMENT INC
    EIN: 56-1802700
    Category/ Item Listed at Cost or FMV Book Value End of Year Fair Market Value
    US 321 BYPASS LLC AT COST 25,524 25,524

    TY 2012 OtherExpensesSchedule
    Name:
    BAILEY ENDOWMENT INC
    EIN: 56-1802700
    Description Revenue and Expenses per Books Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    EXPENSES        
    MISCELLANEOUS EXPENSE FROM K- 153 153    
    MISCELLANEOUS EXPENSE 1,049 1,049    
    POSTAGE 90      


    TY 2012 OtherIncomeSchedule2
    Name:
    BAILEY ENDOWMENT INC
    EIN: 56-1802700
    Description Revenue And Expenses Per Books Net Investment Income Adjusted Net Income
    BELMONT 1 - US 321/74 BYPASS 11   11
    FIFTH THIRD INVESTMENT ACCT 2,380   2,380


    TY 2012 OtherProfessionalFeesSchedule
    Name:
    BAILEY ENDOWMENT INC
    EIN: 56-1802700
    Category Amount Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    BROKERAGE FEES 16,726 16,726    


    TY 2012 TaxesSchedule
    Name:
    BAILEY ENDOWMENT INC
    EIN: 56-1802700
    Category Amount Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    EXCISE TAX 1,262      
    FOREIGN TAX 281 281    
    PROPERTY TAX FROM K-1 340 340