Form990-PF
Click to see list of attachments

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 10-01-2012 , and ending 09-30-2013
Name of foundation
Rea Charitable Trust
Trust - 77433500

Number and street (or P.O. box number if mail is not delivered to street address)PO Box 41629   Room/suite
City or town, state, and ZIP code
Austin, TX78701
A Employer identification number

26-3671567
B Telephone number (see instructions)

(432) 685-5211
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$38,458,535J 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      
4 Dividends and interest from securities...... 528,382 528,382  
5a Gross rents..............      
b Net rental income or (loss)  
6a Net gain or (loss) from sale of assets not on line 10 252,396
b Gross sales price for all assets on line 6a 2,216,852
7 Capital gain net income (from Part IV, line 2)... 252,396
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)....... Click to see attachment 2,716,731 2,716,731  
12 Total. Add lines 1 through 11........ 3,497,509 3,497,509  
Operating and Administrative Expenses 13 Compensation of officers, directors, trustees, etc. 373,937 308,403   65,534
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 10,000     10,000
c Other professional fees (attach schedule)....        
17 Interest...............        
18 Taxes (attach schedule) (see instructions) Click to see attachment 342,408 342,408    
19 Depreciation (attach schedule) and depletion... Click to see attachment 284,326 284,326  
20 Occupancy..............        
21 Travel, conferences, and meetings.......        
22 Printing and publications..........        
23 Other expenses (attach schedule)....... Click to see list of attachments 8,506 8,506    
24 Total operating and administrative expenses.
Add lines 13 through 23.......... 1,019,177 943,643   75,534
25 Contributions, gifts, grants paid........ 1,180,700 1,180,700
26 Total expenses and disbursements. Add lines 24 and 25 2,199,877 943,643   1,256,234
27 Subtract line 26 from line 12:
a Excess of revenue over expenses and disbursements 1,297,632
b Net investment income (if negative, enter -0-) 2,553,866
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 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............... 984 189 189
2 Savings and temporary cash investments.......... 2,981,183 4,283,804 4,283,804
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...........      
10a Investments—U.S. and state government obligations (attach schedule) 1,006,035 Click to see attachment1,662,330 1,623,837
b Investments—corporate stock (attach schedule)........ 2,851,436 Click to see attachment3,110,001 4,632,491
c Investments—corporate bonds (attach schedule)........ 2,650,556 Click to see attachment1,772,214 1,777,475
11 Investments—land, buildings, and equipment: basis bullet6,726,335
Less: accumulated depreciation (attach schedule) bullet1,230,284 5,780,377 Click to see attachment5,496,051 15,159,476
12 Investments—mortgage loans..............      
13 Investments—other (attach schedule)........... 9,510,943 Click to see attachment9,750,537 10,981,263
14 Land, buildings, and equipment: basis bullet  
Less: accumulated depreciation (attach schedule) bullet        
15 Other assets (describe bullet) Click to see attachment1    
16 Total assets (to be completed by all filers—see the
instructions. Also, see page 1, item I) 24,781,515 26,075,126 38,458,535
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......... 20,295,450 20,295,450
28 Paid-in or capital surplus, or land, bldg., and equipment fund    
29 Retained earnings, accumulated income, endowment, or other funds 4,486,065 5,779,676
30 Total net assets or fund balances (see page 17 of the
instructions).................... 24,781,515 26,075,126
31 Total liabilities and net assets/fund balances (see page 17 of
the instructions).................. 24,781,515 26,075,126
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 24,781,515
2 Enter amount from Part I, line 27a..................... 2 1,297,632
3 Other increases not included in line 2 (itemize) bullet 3  
4 Add lines 1, 2, and 3.......................... 4 26,079,147
5 Decreases not included in line 2 (itemize) bulletClick to see attachment 5 4,021
6 Total net assets or fund balances at end of year (line 4 minus line 5)—Part II, column (b), line 30. 6 26,075,126
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.)
1a
b
c
d
e
(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
b
c
d
e
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
b
c
d
e
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 2 252,396
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 22,541
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      
2010      
2009      
2008      
2007      
2 Total of line 1, column (d) ...................... 2  
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  
4 Enter the net value of noncharitable-use assets for 2012 from Part X, line 5..... 4  
5 Multiply line 4 by line 3....................... 5  
6 Enter 1% of net investment income (1% of Part I, line 27b)........... 6  
7 Add lines 5 and 6......................... 7  
8 Enter qualifying distributions from Part XII, line 4.............. 8  
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 51,077
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 51,077
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 51,077
6 Credits/Payments:
a 2012 estimated tax payments and 2011 overpayment credited to 2012 6a 64,000
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 64,000
8 Enter any penalty for underpayment of estimated tax. if Form 2220 is attached. Click to see attachment 8 13
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 12,910
11 Enter the amount of line 10 to be: Credited to 2013 estimated taxBullet12,910 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
 
No
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
     
    No
    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)
    bulletTX
    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 addressbulletwww.reacharitabletrust.org
    14
    The books are in care ofbulletWells Fargo Bank NA Telephone no.bullet (432) 685-5211
    Located atbulletPO Box 1959MidlandTX ZIP+4bullet797021959
    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
     
    No
    .........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
     
    No
    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
     
    No
    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
     
    No
    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
     
    No
    .........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
     
    No
    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
    Mike Talley Grants Advisor
    0.00     		100    
    500 W Texas
    Midland,TX79701
    Paul Morris Grants Advisor
    0.00     		200    
    1004 N Big Spring Ste 610
    Midland,TX79701
    Dona Bradley Grants Advisor
    0.00     		100    
    PO Box 11283
    Midland,TX79702
    Becky Ferguson Grants Advisor
    0.00     		200    
    1704 Storey Ave
    Midland,TX79701
    Vicky Jay Grants Advisor
    0.00     		200    
    4520 Hilltop
    Midland,TX79707
    Richard Folger Grants Advisor
    0.00     		200    
    PO Box 60760
    Midland,TX797110760
    Wells Fargo Bk NA Trustee Trustee
    0.00     		372,937    
    PO Box 1959
    Midland,TX797021959
    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  
    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
    15,961,894
    b
    Average of monthly cash balances.......................
    1b
    3,387,415
    c
    Fair market value of all other assets (see instructions)................
    1c
    17,581,408
    d
    Total (add lines 1a, b, and c).........................
    1d
    36,930,717
    e
    Reduction claimed for blockage or other factors reported on lines 1a and
    1c (attach detailed explanation) .............
    1e
    0
    2
    Acquisition indebtedness applicable to line 1 assets..................
    2
     
    3
    Subtract line 2 from line 1d.........................
    3
    36,930,717
    4
    Cash deemed held for charitable activities. Enter 1 1⁄2% of line 3 (for greater amount, see
    instructions) .............................
    4
    553,961
    5
    Net value of noncharitable-use assets. Subtract line 4 from line 3. Enter here and on Part V, line 4
    5
    36,376,756
    6
    Minimum investment return. Enter 5% of line 5..................
    6
    1,818,838
    Part XI
    Distributable Amount bullet and do not complete this part.)
    1
    Minimum investment return from Part X, line 6....................
    1
    1,818,838
    2a
    Tax on investment income for 2012 from Part VI, line 5......
    2a
    51,077
    b
    Income tax for 2012. (This does not include the tax from Part VI.)...
    2b
     
    c
    Add lines 2a and 2b............................
    2c
    51,077
    3
    Distributable amount before adjustments. Subtract line 2c from line 1............
    3
    1,767,761
    4
    Recoveries of amounts treated as qualifying distributions................
    4
     
    5
    Add lines 3 and 4............................
    5
    1,767,761
    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
    1,767,761
    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
    1,256,234
    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
    1,256,234
    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
    1,256,234
    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 1,767,761
    2 Undistributed income, if any, as of the end of 2012:
    a Enter amount for 2011 only....... 861,155
    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$ 1,256,234
    a Applied to 2011, but not more than line 2a 861,155
    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..... 395,079
    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 .............     		 
    f Undistributed income for 2012. Subtract
    lines 4d and 5 from line 1. This amount must
    be distributed in 2013 ..........     		1,372,682
    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:
    Trust Department
    P O Box 1959
    Midland,TX79702
    (432) 685-5300
    bThe form in which applications should be submitted and information and materials they should include:
    A formal Grant Application must be completed. In Addition to the Grant Application, the applicant must submit budget information, audited financial statements, if any, a copy of the IRS Determination Letter regarding tax exempt status and the last Form 990 filed with the IRS.
    cAny submission deadlines:
    Grants awarded in June & December - Deadline 4-15 & 10-15
    dAny restrictions or limitations on awards, such as by geographical areas, charitable fields, kinds of institutions, or other
    factors:
    Geographical Area Generally
    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
    Univ of Texas-Austin -Theatre Dance
    300 East 23rd St
    Austin,TX78712     		None Public Undergraduate Scholarships 50,000
    Texas Tech Univ - Visual Perf Arts
    Holden Hall Room 103
    Lubbock,TX79409     		None Public Summer Lab & Workshop 30,000
    San Angelo Performing Arts Coalitio
    2201 Sherwood Way Ste 205
    San Angelo,TX76901     		None Public Remodel Facility 35,000
    Odessa College Foundation
    201 W University Blvd
    Odessa,TX79762     		None Public Steinway Piano Initiative 40,000
    Midland Shared Spaces Inc
    3510 N A St
    Midland,TX79705     		None Public Capital Campaign 300,000
    Midland Montessori School
    1011 Austin St
    Midland,TX79703     		None Public Purchase Musical Instruments 11,000
    Midland High School Orchestra Boost
    Attn Lael Pitts 550 W Texas Ste1260
    Midland,TX79701     		None Public Concert Trip 15,000
    Marfa Public Radio Corp
    111 S Highland
    Marfa,TX79843     		None Public Increase Coverage 30,000
    Manor Park Inc
    2208 N Loop 250 West
    Midland,TX79707     		None Public Purchases 39,000
    Lee High School Theatre Booster Clu
    Attn Jami Owen 615 W Missouri Ave
    Midland,TX79701     		None Public Underwrite Event 5,000
    George W Bush Childhood Home
    400 East Broadway
    Midland,TX79701     		None Public History Preserv & Education 15,000
    West Texas Jazz Society
    PO Box 10832
    Midland,TX79702     		None Public Cultural Arts 20,000
    I20 Wildlife Preserve Jenna Welch C
    2201 S Midland Dr
    Midland,TX79706     		None Public Funding Festival on the Arts 10,000
    Permian Basin Area Foundation
    200 N Loraine St
    Midland,TX79701     		None Public Public Charity 75,000
    Midland Opera Theatre
    PO Box 4504
    Midland,TX79704     		None Public Cultural Arts 30,000
    Midland-Odessa Symphony Chorale
    3100 La Force Blvd
    Odessa,TX79761     		None Public Public Symphony 70,000
    Ellen Noel Art Museum
    4909 E University
    Odessa,TX79762     		None Public Cultural Arts 10,000
    Univ of Texas Permian Basin
    4901 East University
    Odessa,TX79762     		None Public Performing Arts 200,000
    Midland Festival Ballet
    401 W Texas Ave
    Midland,TX79701     		None Public Cultural Arts 30,000
    Museum of the Southwest
    1705 West Missouri Avenue
    Midland,TX79701     		None Public Art Appreciation & Education 5,000
    Midland Community Concerts
    PO Box 10836
    Midland,TX79702     		None Public Cultural Arts 15,000
    Midland College Foundation
    3600 N Garfield St
    Midland,TX79705     		None Public Musical Instruments 20,000
    Hospice of Midland Inc
    PO Box 2621
    Midland,TX79702     		None Public Public Health & Care 50,000
    Bynum School
    8404 W County Rd 60
    Midland,TX79708     		None Public Therapy Program 12,000
    Angelo State University Foundation
    2601 W Ave N ASU Station 11023
    San Angelo,TX76909     		None Public Education for Disabled 13,700
    Arts Council of Midland
    401 West Texas
    Midland,TX79701     		None Public Art Appreciation & Education 35,000
    Allegro Chorale Orchestra
    2304 Metz Place
    Midland,TX79705     		None Public Community Concerts 15,000
    Total .................................bullet 3a 1,180,700
    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          
    4 Dividends and interest from securities....     1 528,382  
    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.....     1 2,716,731  
    8Gain or (loss) from sales of assets other than inventory         252,396
    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)..   3,245,113 252,396
    13Total. Add line 12, columns (b), (d), and (e)..................
    133,497,509
    (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: 12000229
    Software Version: 2012v2.0


    Form 990PF - Special Condition Description:
    Special Condition Description

    TY 2012 AccountingFeesSchedule
    Name:
    Rea Charitable Trust
    Trust - 77433500
    EIN: 26-3671567
    Software ID:12000229
    Software Version:2012v2.0
    Category Amount Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
      10,000 0 0 10,000

    Note: To capture the full content of this document, please select landscape mode (11" x 8.5") when printing.

    TY 2012 DepreciationSchedule
    Name:
    Rea Charitable Trust
    Trust - 77433500
    EIN: 26-3671567
    Software ID:12000229
    Software Version:2012v2.0
    Description of Property Date Acquired Cost or Other Basis Prior Years' Depreciation Computation Method Rate /
    Life (# of years)    		 Current Year's Depreciation Expense Net Investment Income Adjusted Net Income Cost of Goods Sold Not Included
    Oil & Gas Royalty 2009-09-01 6,632,485 945,958 94 25.0000 284,326      

    TY 2012 InvestmentsCorpBondsSchedule
    Name:
    Rea Charitable Trust
    Trust - 77433500
    EIN: 26-3671567
    Software ID:12000229
    Software Version:2012v2.0
    Name of Bond End of Year Book Value End of Year Fair Market Value
    Wal Mart 4/15/21 108,811 108,502
    Walgreen Co 8/1/13    
    Teck Resources 2/1/18 102,379 98,946
    Target 1/15/18 100,958 117,373
    Pepsico 6/1/18 115,708 113,240
    Microsoft 100,966 101,918
    Merck & Co 6/30/15    
    Medco Health 9/15/20 110,946 103,779
    McDonalds 1/15/22 99,657 96,499
    Kellog Co 5/17/17 101,583 100,386
    Genl Elec Cap 11/14/14 211,934 207,440
    EBay Inc 10/15/20 99,255 102,036
    Duke Energy 6/15/17 101,389 99,610
    Duke Energy Carolina    
    Charles Schwab 6/1/14    
    Cisco Syst 2/15/19 115,075 113,469
    Blackrock Inc 12/10/19 78,028 85,086
    Berkshire Hathaway 1/15/21 107,260 107,057
    BP Capital Mkts 10/1/20 108,860 108,042
    Goldman Sachs Group Inc. 5/7/13    
    AT&T Inc 5/15/18 109,405 114,092

    TY 2012 InvestmentsCorpStockSchedule
    Name:
    Rea Charitable Trust
    Trust - 77433500
    EIN: 26-3671567
    Software ID:12000229
    Software Version:2012v2.0
    Name of Stock End of Year Book Value End of Year Fair Market Value
    US Bancorp 90,692 104,985
    United Parcel 65,919 86,801
    Union Pacific 86,221 132,350
    United Health Group 58,069 140,928
    Total SA -adr 69,514 89,197
    Thermo Fisher Scientific 40,767 82,474
    3M Company 74,241 113,440
    Target 98,635 127,000
    TJX Cos Inc 51,562 106,408
    Schlumberger 96,749 128,829
    Oracle Corp 70,431 86,242
    Nestle S A 49,070 93,055
    National Oil Well Inc 89,132 98,106
    Monster Beverage 58,384 66,619
    Microsoft 64,716 79,939
    Mckesson Corp 78,209 105,847
    Johnson Controls 119,836 142,428
    JP Morgan Chase 96,937 139,977
    IBM Corp 81,682 73,702
    HSBC 79,863 80,684
    Google 85,235 121,751
    Goldman Sachs 50,581 79,896
    Gilead Sciences 51,335 122,785
    Eaton Corp PLC 72,280 96,307
    EMC Corp 36,303 71,031
    Disney (Walt) Co 55,734 145,231
    Diageo PLC 42,111 92,641
    Comcast Corp 42,475 134,759
    Coach Inc 92,463 89,974
    Cisco Systems 74,794 104,502
    Chevron Corp 46,411 92,826
    Celanese Corp 74,365 76,070
    Capital One Financial 40,163 96,099
    CVS/Caremark 49,907 103,739
    CME Group 85,519 117,469
    Boeing 63,566 111,625
    BHP Billiton 72,676 57,389
    Berkshire Hathaway 106,282 165,157
    Baxter Intl Inc 71,825 66,018
    Apple Computer 75,002 195,467
    Apache Corp 105,153 96,038
    Anheuser-Busch 80,115 111,202
    Affiliated Managers 61,007 105,018
    Aflac 54,070 100,486
    Teva Pharmaceutical    
    Cooper Industries PLC    
    Vodafone Group    
    Novartis AG-ADR    
    Intel Corp    
    Abbott Labs    

    TY 2012 InvestmentsGovtObligationsSch
    Name:
    Rea Charitable Trust
    Trust - 77433500
    EIN: 26-3671567
    Software ID:12000229
    Software Version:2012v2.0
    US Government Securities - End of Year Book Value:

    1,662,330
    US Government Securities - End of Year Fair Market Value:

    1,623,837
    State & Local Government Securities - End of Year Book Value:


     
    State & Local Government Securities - End of Year Fair Market Value:


     


    TY 2012 InvestmentsLandSchedule2
    Name:
    Rea Charitable Trust
    Trust - 77433500
    EIN: 26-3671567
    Software ID:12000229
    Software Version:2012v2.0
    Category/ Item Cost/Other Basis Accumulated Depreciation Book Value End of Year Fair Market Value
    Miscellaneous 6,726,335 1,230,284 5,496,051 15,159,476

    TY 2012 InvestmentsOtherSchedule2
    Name:
    Rea Charitable Trust
    Trust - 77433500
    EIN: 26-3671567
    Software ID:12000229
    Software Version:2012v2.0
    Category/ Item Listed at Cost or FMV Book Value End of Year Fair Market Value
      AT COST    
      AT COST    
      AT COST    
      AT COST    
      AT COST    
      AT COST    
      AT COST    
      AT COST    
      AT COST    
      AT COST    
      AT COST    
    Templeton Global Bond Fd AT COST 645,000 685,912
    Pimco Foreign Bond Fd AT COST 480,000 426,994
    Partners Group Priv Eq AT COST 425,000 462,675
    Vanguard REIT Viper AT COST 465,468 632,761
    Chambers St Props (Ellis Rlty) AT COST 411,077 429,456
    Rici Linked Pam Total Index AT COST 350,000 367,090
    Pam Global Diversified Fund AT COST 425,000 358,521
    Merger Fund AT COST 199,434 207,915
    Hussman Strat Growth Fund AT COST 399,427 308,922
      AT COST    
    Vanguard Emerging Markets AT COST 405,238 371,449
    Harbor Intl Fund AT COST 350,327 494,411
    T Rowe Price Inst Emer Fd AT COST 300,118 340,017
    Principal Inv Mid Cap Growth Fd AT COST 99,680 136,421
    Ishares Tr Small Cap 600 Index Fd AT COST 175,384 322,853
    Ishares S&P Midcap 400 Index Fd AT COST 535,208 807,531
    Dreyfus/Boston Co Small Cap Grwth Fd AT COST 249,984 385,676
      AT COST    
    Keeley Small Cap Value Fd AT COST 149,000 277,041
    IShares MSCI EAFE ETF AT COST 852,091 988,724
    Invesco Int'l Growth Fund AT COST 90,000 123,698
    Fidelity Adv Emerg Mkts Inc Fd AT COST 364,000 383,778
    Aberdeen Global High Inc Fd AT COST 840,744 837,179
      AT COST    
      AT COST    
      AT COST    
      AT COST    
    ASGI Mesirow Insight Fd AT COST 455,540 459,877
    Ally Mtg-backed Mast Tr AT COST 296,461 296,388
      AT COST    
    Ipath DJ UBS Commod Index AT COST 131,256 99,521
    SPDR DJ Wilshire Int'l Real Estate ETF AT COST 539,472 616,488
    Vornado Realty Trust AT COST    
    IShares Gold Trust AT COST 115,628 159,965
      AT COST    
      AT COST    
      AT COST    
      AT COST    
    General Elec Cap Pfd AT COST    
      AT COST    

    TY 2012 OtherDecreasesSchedule
    Name:
    Rea Charitable Trust
    Trust - 77433500
    EIN: 26-3671567
    Software ID:12000229
    Software Version:2012v2.0
    Description Amount
    Misc Adjustments 4,021


    TY 2012 OtherExpensesSchedule
    Name:
    Rea Charitable Trust
    Trust - 77433500
    EIN: 26-3671567
    Software ID:12000229
    Software Version:2012v2.0
    Description Revenue and Expenses per Books Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    Various Misc Expenses 2,212 2,212    
    Other Expense re Royalties 4,794 4,794    
    Dues to Assoc of Foundations 1,500 1,500    


    TY 2012 OtherIncomeSchedule2
    Name:
    Rea Charitable Trust
    Trust - 77433500
    EIN: 26-3671567
    Software ID:12000229
    Software Version:2012v2.0
    Description Revenue And Expenses Per Books Net Investment Income Adjusted Net Income
    Other Investment Income 2,716,731 2,716,731  


    TY 2012 TaxesSchedule
    Name:
    Rea Charitable Trust
    Trust - 77433500
    EIN: 26-3671567
    Software ID:12000229
    Software Version:2012v2.0
    Category Amount Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    Foreign Tax on Dividends 5,819 5,819    
    Current Yr Est Tax Pmts - Form 990-PF 64,000 64,000    
    Bal Due on FYE 9/2012 Form 990-PF 14,865 14,865    
    Ad Val & Severance Tax on Minerals 257,724 257,724