TY 2018 Form 990PF

- TIN:

Form990-PF

Department of the Treasury
Internal Revenue Service

Return of Private Foundation

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

Do not enter social security numbers on this form as it may be made public.
bullet

Go to www.irs.gov/Form990PF for instructions and the latest information.

OMB No. 1545-0052

2018

Open to Public Inspection

For calendar year 2018, or tax year beginning 01-01-2018 , and ending 12-31-2018

Name of foundation
The Karese Foundation

% FOSTER H CHASE JR

Number and street (or P.O. box number if mail is not delivered to street address)PO Box 499
Room/suite

City or town, state or province, country, and ZIP or foreign postal code
Colbert, WA99005

A Employer identification number

47-5125279

B Telephone number (see instructions)

(509) 238-2708

C If exemption application is pending, check here bullet

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

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

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

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

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

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

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

$695,831J Accounting method: Cash Accrual
Other (specify)
(Part I, column (d) must be on cash basis.)

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


1	Contributions, gifts, grants, etc., received (attach schedule)	0
2	Check .............
3	Interest on savings and temporary cash investments	211		211
4	Dividends and interest from securities...	27,947		27,947
5a	Gross rents............
b	Net rental income or (loss)
6a	Net gain or (loss) from sale of assets not on line 10		154,708
b	Gross sales price for all assets on line 6a 977,159
7	Capital gain net income (from Part IV, line 2)...			154,708
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).......		11,578	11,578
12	Total. Add lines 1 through 11........	194,444		194,444
13	Compensation of officers, directors, trustees, etc.	0
14	Other employee salaries and wages......
15	Pension plans, employee benefits.......
16a	Legal fees (attach schedule).........
b	Accounting fees (attach schedule).......
c	Other professional fees (attach schedule)....		10,045	10,045
17	Interest...............
18	Taxes (attach schedule) (see instructions)...		200
19	Depreciation (attach schedule) and depletion...
20	Occupancy..............
21	Travel, conferences, and meetings.......
22	Printing and publications..........
23	Other expenses (attach schedule).......		10,332	151	10,181
24	Total operating and administrative expenses.
	Add lines 13 through 23..........	20,577		10,196	10,181
25	Contributions, gifts, grants paid.......	895,000			895,000
26	Total expenses and disbursements. Add lines 24 and 25	915,577		10,196	905,181
27	Subtract line 26 from line 12:
a	Excess of revenue over expenses and disbursements	-721,133
b	Net investment income (if negative, enter -0-)			184,248
c	Adjusted net income (if negative, enter -0-)...

For Paperwork Reduction Act Notice, see instructions.

Cat. No. 11289X Form 990-PF (2018)

Form 990-PF (2018)

Page 2

Part II		Balance Sheets	Beginning of year	End of year
Part II		Balance Sheets	(a) Book Value	(b) Book Value	(c) Fair Market Value
	1	Cash—non-interest-bearing.............
	2	Savings and temporary cash investments.........	92,413	22,359	22,359
	3	Accounts receivable
		Less: allowance for doubtful accounts
	4	Pledges receivable
		Less: allowance for doubtful accounts
	5	Grants receivable.................
	6	Receivables due from officers, directors, trustees, and other
		disqualified persons (attach schedule) (see instructions).....
	7	Other notes and loans receivable (attach schedule) 285,301
		Less: allowance for doubtful accounts	291,087	285,301	285,300
	8	Inventories for sale or use..............
	9	Prepaid expenses and deferred charges..........
	10a	Investments—U.S. and state government obligations (attach schedule)
	b	Investments—corporate stock (attach schedule).......	653,984	186,688	205,617
	c	Investments—corporate bonds (attach schedule).......	367,354	189,357	182,555
	11	Investments—land, buildings, and equipment: basis
		Less: accumulated depreciation (attach schedule)
	12	Investments—mortgage loans.............
	13	Investments—other (attach schedule)..........
	14	Land, buildings, and equipment: basis
		Less: accumulated depreciation (attach schedule)
	15	Other assets (describe )
	16	Total assets (to be completed by all filers—see the
		instructions. Also, see page 1, item I)	1,404,838	683,705	695,831
	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 )
	23	Total liabilities (add lines 17 through 22).........	0	0
		Foundations that follow SFAS 117, check here
		and complete lines 24 through 26 and lines 30 and 31.
	24	Unrestricted..................
	25	Temporarily restricted...............
	26	Permanently restricted...............
		Foundations that do not follow SFAS 117, check here
		and complete lines 27 through 31.
	27	Capital stock, trust principal, or current funds........
	28	Paid-in or capital surplus, or land, bldg., and equipment fund
	29	Retained earnings, accumulated income, endowment, or other funds	1,404,838	683,705
	30	Total net assets or fund balances (see instructions).....	1,404,838	683,705
	31	Total liabilities and net assets/fund balances (see instructions).	1,404,838	683,705

Part III

Analysis of Changes in Net Assets or Fund Balances

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) ...............

1,404,838

Enter amount from Part I, line 27a .....................

-721,133

Other increases not included in line 2 (itemize) bullet

Add lines 1, 2, and 3 ..........................

683,705

Decreases not included in line 2 (itemize) bullet

Total net assets or fund balances at end of year (line 4 minus line 5)—Part II, column (b), line 30 .

683,705

Form 990-PF (2018)

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	Publicly-traded Securities
b
c
d
e

(e) Gross sales price		(g) Cost or other basis plus expense of sale	(h) Gain or (loss) (e) plus (f) minus (g)
a	977,159	822,451	154,708
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			154,708
b
c
d
e

2	Capital gain net income or (net capital loss)	If gain, also enter in Part I, line 7 If (loss), enter -0- in Part I, line 7	2	154,708
3	Net short-term capital gain or (loss) as defined in sections 1222(5) and (6):
	If gain, also enter in Part I, line 8, column (c) (see instructions). If (loss), enter -0- in Part I, line 8 ...................		3

Part V

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

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

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

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

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

1 Enter the appropriate amount in each column for each year; see 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))
2017	565,610	1,921,326	0.294385
2016	114,599	2,050,915	0.055877
2015		247,482
2014	0	0	0.0
2013	0	0	0.0

Total of line 1, column (d) .....................

0.350262

Average distribution ratio for the 5-year base period—divide the total on line 2 by 5.0, or by the number of years the foundation has been in existence if less than 5 years ......

0.116754

Enter the net value of noncharitable-use assets for 2018 from Part X, line 5......

1,256,911

Multiply line 4 by line 3......................

146,749

Enter 1% of net investment income (1% of Part I, line 27b)...........

1,842

Add lines 5 and 6........................

148,591

Enter qualifying distributions from Part XII, line 4,.............

905,181

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 (2018)

Page 4

Part VI

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

1a	Exempt operating foundations described in section 4940(d)(2), check here and enter “N/A" on line 1.
	Date of ruling or determination letter: (attach copy of letter if necessary–see instructions)
b	Domestic foundations that meet the section 4940(e) requirements in Part V, check	1	1,842
	hereand enter 1% of Part I, line 27b...................
c	All other domestic foundations enter 2% of line 27b. Exempt foreign organizations enter 4% of Part I, line 12, col. (b)
2	Tax under section 511 (domestic section 4947(a)(1) trusts and taxable foundations only. Others enter -0-)	2
3	Add lines 1 and 2...........................	3	1,842
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	1,842
6	Credits/Payments:

a	2018 estimated tax payments and 2017 overpayment credited to 2018	6a	534
b	Exempt foreign organizations—tax withheld at source......	6b
c	Tax paid with application for extension of time to file (Form 8868)...	6c	3,006
d	Backup withholding erroneously withheld ...........	6d

7	Total credits and payments. Add lines 6a through 6d..............		7	3,540
8	Enter any penalty for underpayment of estimated tax. Check here 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.......		9
10	Overpayment. If line 7 is more than the total of lines 5 and 8, enter the amount overpaid...		10	1,698
11	Enter the amount of line 10 to be: Credited to 2019 estimated tax1,698	Refunded	11

Part VII-A

Statements Regarding Activities

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

Yes

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

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

for definition).................................

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

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

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

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

(1) On the foundation. bullet

$ (2) On foundation managers. bullet

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

on foundation managers. bullet

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

If "Yes," attach a detailed description of the activities.

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

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

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

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

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

Yes

If "Yes," attach the statement required by General Instruction T. Click to see attachment

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

By language in the governing instrument, or

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

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

Yes

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

and Part XV..................................

Yes

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

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

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

Yes

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

or 4942(j)(5) for calendar year 2018 or the taxable year beginning in 2018? See the instructions for Part XIV.

If "Yes," complete Part XIV .............................

Did any persons become substantial contributors during the tax year? If "Yes," attach a schedule listing their names

and addresses. ...............................

Form 990-PF (2018)

Page 5

Part VII-A

Statements Regarding Activities (continued)

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

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

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

advisory privileges? If "Yes," attach statement. See instructions.................

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

Yes

Website address bullet

The books are in care of bullet

FOSTER H CHASE JR Telephone no. bullet

(509) 238-2708

Located at bullet

PO BOX 499colbertWA ZIP+4 bullet

99005

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

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

16 At any time during calendar year 2018, did the foundation have an interest in or a signature or other authority over YesNo

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

16 No

See the instructions for exceptions and filing requirements for FinCEN Form 114. If "Yes", enter the name of the foreign
country bullet

Part VII-B

Statements Regarding Activities for Which Form 4720 May Be Required

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

Yes

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

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

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

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

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

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

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

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

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

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

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

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

section 53.4941(d)-3 or in a current notice regarding disaster assistance? See instructions ........

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

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

that were not corrected before the first day of the tax year beginning in 2018?.............

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

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

At the end of tax year 2018, did the foundation have any undistributed income (lines 6d

and 6e, Part XIII) for tax year(s) beginning before 2018?.............YesNo

If "Yes," list the years bullet

20, 20, 20, 20

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

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

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

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

20, 20, 20, 20

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

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

If "Yes," did it have excess business holdings in 2018 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 2018.)..................

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

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

charitable purpose that had not been removed from jeopardy before the first day of the tax year beginning in 2018?

Form 990-PF (2018)

Page 6

Part VII-B

Statements Regarding Activities for Which Form 4720 May Be Required (continued)

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

Yes

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

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

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

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

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

in section 4945(d)(4)(A)? See instructions................YesNo

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

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

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

Regulations section 53.4945 or in a current notice regarding disaster assistance? See instructions ......

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

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

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

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

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

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

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

If "Yes" to 6b, file Form 8870.

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

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

Is the foundation subject to the section 4960 tax on payment(s) of more than $1,000,000 in remuneration or

excess parachute payment during the year? .................YesNo

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
Brenda Jo Chase	Dir, Sec, Treas 1.0	0	0	0
PO Box 499 Colbert,WA99005	Dir, Sec, Treas 1.0	0	0	0
Foster H Chase Jr	Pres, Dir 1.0	0	0	0
PO Box 499 Colbert,WA99005	Pres, Dir 1.0	0	0	0

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










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

Form 990-PF (2018)

Page 7

Part VIII

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

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

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

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 instructions.
3

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

Form 990-PF (2018)

Page 8

Part X

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

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

purposes:

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

895,541

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

95,211

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

285,300

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

1,276,052

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

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

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

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

1,276,052

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

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

19,141

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

1,256,911

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

62,846

Part XI

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

and do not complete this part.)

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

62,846

Tax on investment income for 2018 from Part VI, line 5......

1,842

Income tax for 2018. (This does not include the tax from Part VI.)...

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

1,842

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

61,004

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

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

61,004

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

Distributable amount as adjusted. Subtract line 6 from line 5. Enter here and on Part XIII, line 1 ...

61,004

Part XII

Qualifying Distributions (see instructions)

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

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

905,181

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

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

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

Amounts set aside for specific charitable projects that satisfy the:

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

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

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

905,181

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.................

1,842

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

903,339

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 (2018)

Page 9

Part XIII

Undistributed Income (see instructions)

		(a) Corpus	(d) 2018
1 Distributable amount for 2018 from Part XI, line 7			61,004
2 Undistributed income, if any, as of the end of 2018:
a Enter amount for 2017 only.......
b Total for prior years:2016, 2015, 2014
3 Excess distributions carryover, if any, to 2018:
a From 2013......
b From 2014......
c From 2015......
d From 2016......	8,944
e From 2017......	470,532
fTotal of lines 3a through e........		479,476
4Qualifying distributions for 2018 from Part
XII, line 4: $ 905,181
a Applied to 2017, but not more than line 2a
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 2018 distributable amount.....			61,004
e Remaining amount distributed out of corpus		844,177
5 Excess distributions carryover applied to 2018.
(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		1,323,653
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 2017. Subtract line 4a from line 2a. Taxable amount—see instructions .............
f Undistributed income for 2018. Subtract lines 4d and 5 from line 1. This amount must be distributed in 2019 ..........			0
7 Amounts treated as distributions out of corpus to satisfy requirements imposed by section 170(b)(1)(F) or 4942(g)(3) (Election may be required - see instructions) .......
8 Excess distributions carryover from 2013 not applied on line 5 or line 7 (see instructions) ...
9Excess distributions carryover to 2019. Subtract lines 7 and 8 from line 6a ......		1,323,653
10 Analysis of line 9:
a Excess from 2014....
b Excess from 2015....
c Excess from 2016....	8,944
d Excess from 2017....	470,532
e Excess from 2018....	844,177

Form 990-PF (2018)

Page 10

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 2018, enter the date of the ruling....... bullet

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

2a Enter the lesser of the adjusted net income from Part I or the minimum investment return from Part X for each year listed ..........	Tax year	Prior 3 years			(e) Total
	(a) 2018	(b) 2017	(c) 2016	(d) 2015	(e) Total

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

Part XV

Supplementary Information (Complete this part only if the foundation 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).)

Foster H Chase Jr

BRENDA JO CHASE

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

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

Check here bullet

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

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

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

cAny submission deadlines:

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

Form 990-PF (2018)

Page 11

Part XV

Supplementary Information (continued)

3 Grants and Contributions Paid During the Year or Approved for Future Payment
Recipient	If recipient is an individual, show any relationship to any foundation manager or substantial contributor	Foundation status of recipient	Purpose of grant or contribution	Amount
Name and address (home or business)		Foundation status of recipient	Purpose of grant or contribution	Amount
aPaid during the year
COLLEGE SUCCESS FOUNDATION 15500 SE 30TH PL STE 200 BELLEVUE,WA98007	N/A	PC	General & Unrestricted	25,000
COLLEGE SUCCESS FOUNDATION 15500 SE 30TH PL STE 200 BELLEVUE,WA98007	N/A	PC	scholarship fund for a student who wishes to attend either Seattle Pacific University, Northwest University, or Whitworth College	25,000
GORDON COLLEGE 255 GRAPEVINE RD WENHAM,MA01984	N/A	PC	General & Unrestricted	600,000
GORDON COLLEGE 255 GRAPEVINE RD WENHAM,MA01984	N/A	PC	Track Renovation Project	140,000
NORTHWEST CHRISTIAN SCHOOLS INC 5104 E BERNHILL RD COLBERT,WA99005	N/A	PC	General & Unrestricted	25,000
STEWARDS JOURNEY 21816 BUCKEYE LAKE LN COLBERT,WA99005	N/A	PC	General & Unrestricted	30,000
THE BIG TABLE PO BOX 372 SPOKANE VALLEY,WA99210	N/A	PC	General & Unrestricted	50,000
Total ................................. 3a				895,000

bApproved for future payment

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

Form 990-PF (2018)

Page 12

Part XVI-A

Analysis of Income-Producing Activities

Enter gross amounts unless otherwise indicated.	Unrelated business income		Excluded by section 512, 513, or 514		(e) Related or exempt function income (See instructions.)
1Program service revenue:	(a) Business code	(b) Amount	(c) Exclusion code	(d) Amount	(e) Related or exempt function income (See instructions.)
a
b
c
d
e
f
gFees and contracts from government agencies
2 Membership dues and assessments....
3 Interest on savings and temporary cash investments ...........			14	211
4 Dividends and interest from securities....			14	27,947
5 Net rental income or (loss) from real estate:
aDebt-financed property......
bNot debt-financed property.....
6 Net rental income or (loss) from personal property
7 Other investment income.....
8 Gain or (loss) from sales of assets other than inventory ............			18	154,708
9 Net income or (loss) from special events:
10 Gross profit or (loss) from sales of inventory
11 Other revenue: aINTEREST INCOME FROM NOTE RECEIVABLE			14	11,578
b
c
d
e
12 Subtotal. Add columns (b), (d), and (e)..				194,444

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

194,444

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

Part XVI-B

Relationship of Activities to the Accomplishment of Exempt Purposes

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

Form 990-PF (2018)

Page 13

Part XVII

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

Did the organization directly or indirectly engage in any of the following with any other organization described in section 501(c) (other than section 501(c)(3) organizations) or in section 527, relating to political organizations?

Yes

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

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

1a(1)

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

1a(2)

Other transactions:

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

1b(1)

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

1b(2)

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

1b(3)

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

1b(4)

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

1b(5)

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

1b(6)

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

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

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

Is the foundation directly or indirectly affiliated with, or related to, one or more tax-exempt organizations
described in section 501(c) (other than section 501(c)(3)) or in section 527? ...........Yes No

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) is based on all information of which preparer has any knowledge.
				May the IRS discuss this return with the preparer shown below (see instr.)? Yes No
	Signature of officer or trustee	Date	Title

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

Form 990-PF (2018)

Additional Data

Software ID:
Software Version:

Form 990PF - Special Condition Description:

Special Condition Description

- TIN:

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

TY 2018 DepreciationSchedule

Name:

The Karese Foundation

EIN:

47-5125279

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

- TIN:

TY 2018 InvestmentsCorpBondsSchedule

Name:

The Karese Foundation

EIN:

47-5125279

Name of Bond	End of Year Book Value	End of Year Fair Market Value
AVALONBAY COMMUNITIES - 3.500%	8,240	7,952
BOSTON PROPERTIES LP - 3.650%	8,094	7,744
BP CAP MKTS - 3.017% - 01/16/2	7,460	7,515
CATERPILLAR FINL SVCS - 3.250%	8,107	7,904
CITIGROUP INC - 4.300% - 11/20	8,857	8,655
CVS HEALTH - 3.875% - 07/20/20	8,563	7,796
DISNEY WALT CO - 3.000% - 02/1	8,314	7,703
DR PEPPER SNAPPLE - 2.700% - 1	7,980	7,586
GENERAL MTRS FINL COINC NOTE -	6,902	6,443
GOLDMAN SACHS GP INC - 5.950%	5,772	5,265
KRAFT FOODS GROUP INC - 3.500%	8,224	7,919
LINCOLN NATL CORP IND - 3.800%	6,751	6,789
MARRIOTT INTL INC NEW NOTE - 4	6,830	6,729
NBC UNIVERSAL MEDIA LLC - 2.87	8,264	7,854
NEWMONT MINING CORP NT - 3.500	8,987	8,905
NUTRIEN LTD NOTE CALL - 3.625%	7,037	6,805
ORACLE CORP - 3.400% - 07/08/2	8,396	7,984
REALTY INCOME CORP NOTE - 3.00	7,579	7,438
TIME WARNER INC - 3.875% - 01/	8,090	7,641
TOTAL CAPITAL CANADA LTD - 2.7	7,861	7,824
TOYOTA MOTOR CREDIT CORP MTN -	7,752	7,575
TYCO ELECTRONICS - 3.700% - 02	8,170	7,777
UNITED PARCEL SERVICE - 2.450%	3,071	2,937
UNITEDHEALTH GROUP INC - 3.450	7,117	6,928
WASTE MGMT - 2.900% - 09/15/20	6,939	6,887

- TIN:

TY 2018 InvestmentsCorpStockSchedule

Name:

The Karese Foundation

EIN:

47-5125279

Name of Stock	End of Year Book Value	End of Year Fair Market Value
ABB LTD	738	513
ABBOTT LABS	944	1,519
ABN AMRO BANK NV UNSP ADR	736	546
ACCELERATE DIAGNOSTICS INC	272	138
ACCENTURE PLC	2,841	3,243
ADOBE SYSTEMS, INC	1,859	2,941
AIA GROUP LTD ADR	451	427
ALIGN TECHNOLOGY, INC	494	1,047
ALLEGHENY TECH	216	174
ALLSTATE CORP	1,057	1,487
ALPHABET INC CL A	1,445	2,090
ALPHABET INC CL C	2,097	3,107
AMER INTERNATIONAL GROUP INC	2,068	1,537
AMERICAN WOODMARK CORP	289	167
AMN HEALTHCARE SERVICES INC	110	227
AMNEAL PHARMACEUTICALS INC	165	135
ANHEUSER BUSCH COS INC	1,373	856
AON PLC	704	1,163
ARCHER DANIELS MDLND	1,152	1,393
ASGN INC	184	273
ASHTEAD GROUP PLC	224	335
ASSA ABLOY UNSP/ADR	1,127	967
AT&T, INC	1,756	1,370
AUTOMATIC DATA PROCESSING INC	2,119	2,885
BANK NEW YORK MELLON CORP COM	1,070	1,412
BANNER CORP	174	160
BARNES GROUP INC	210	214
BB&T CP	1,018	1,386
BHP BILLITON LIMITED	734	1,256
BIOTELEMETRY INC	221	358
BOOKING HOLDINGS INC	1,058	1,722
BOTTOMLINE TECHNOLOGIES, INC	265	384
BRANDYWINE RLTY TR	261	193
CADENCE BANCORPORATION	290	168
CALLAWAY GOLF CO	187	184
CALLON PETROLEUM CO	206	110
CALRSBERG AS SP ADR REP B	656	659
CANADIAN NATL RAILWAY CO	448	519
CANTEL MEDICAL CORPORATION	175	223
CARDINAL HEALTH INC	2,017	1,338
CASEY'S GENERAL STORES, INC	265	256
CAVCO INDS INC DEL	360	261
CHART INDUSTRIES, INC	202	195
CHATHAM LODGING TRUST	184	177
CHILDREN'S PLACE	215	180
CIENA CORP	288	305
CIGNA CORPORATION	547	570
CISCO SYSTEMS INC	776	1,430
CODEXIS INC	195	217
COHEN AND STEERS REALTY INCOME	13,815	12,527
COMFORT SYSTEMS USA INC	186	262
COMPAGNIE FINANCIERE RICHEMONT	335	323
COMPASS GROUP PLC ADR	885	961
CONOCOPHILLIPS	843	1,434
CONTROL4 CORPORATION	218	158
CVS CAREMARK CORP	1,436	1,376
DAIWA HOUSE IND LTD	710	859
DAVE AND BUSTERS ENTERTAINMENT	202	178
DBS GROUP HLDGS SPON ADR	589	767
DELEK US HLDGS INC	267	195
DOLLAR GENERAL CORP	2,117	2,270
DOLLAR TREE INC	1,415	1,535
DOWDUPONT INC	1,155	1,497
EAGLE BANCORP INC	215	195
EASTGROUP PROPERTIES INC	259	275
EDISON INTL	1,514	1,419
ENTEGRIS INC MINNESOTA	68	167
EQUINOR ASA	286	360
EQUITY RESIDENTIAL PPTYS TR	1,278	1,452
EURONET WORLDWIDE INC	223	307
EVOLENT HEALTH INC	307	239
FACEBOOK INC	3,118	3,015
FERGUSON PLC ADR	557	656
FERRO CORP	155	125
FIVE9 INC	257	306
G III APPAREL GRP LTD	187	195
GARTNER INC	1,864	2,173
GENMAB A/S	245	198
HALLIBURTON COMPANY	1,477	1,329
HARDING LOEVNER FRNT EMG MKT I	3,251	3,728
HEALTHEQUITY INC	195	239
HEARTLAND FINANCIAL USA, INC.	286	264
HELEN OF TROY LIMITED	250	262
HILLENBRAND, INC	157	228
HILTON GRAND VACATIONS INC.	240	158
HOULIHAN LOKEY INC	326	258
HUBSPOT INC	319	377
IBERIABANK CORPORATION	233	193
ICF INTERNATIONAL, INC	212	194
ICU MEDICAL, INC	97	230
IMAX CORPORATION	151	150
INFORMA PLC SPONSORED ADR	424	371
INTEGRATED DEVICE TECHNOLOGY I	170	339
INTEL CORP	930	1,455
INTER PARFUMS INC	159	393
J2 GLOBAL INC	347	278
JOHNSON & JOHNSON	1,223	1,549
KADANT INC	207	163
KAO CORP	434	507
KOMATSU LTD	309	452
KORN FERRY INTL	217	158
LAKELAND FINANCIAL CORPORATION	110	161
LIGAND PHARMACEUTICALS INC	258	271
LIVANOVA PLC	182	274
LOWES COMPANIES INC	1,118	1,478
MADDEN STEVEN LTD	199	242
MAINSTAY HIGH YIELD CORPORATE	9,672	9,971
MAKITA CORP	632	774
MALIBU BOATS INC	206	209
MARATHON OIL CORP COM	966	1,405
MARSH AND MCLENNAN COMPANIES I	932	1,436
MASTERCARD INC	692	1,509
MATADOR RESOURCES COMPANY	231	124
MATTHEWS INDIA FUND	6,474	6,017
MEDIDATA SOLUTIONS, INC	224	202
MEDTRONIC PLC	1,271	1,364
MERCK & CO INC	1,092	1,528
META FINANCIAL GROUP, INC	232	116
MICHELIN CIE GEN UNSP/ADR	846	549
MICROSOFT CORP	3,992	4,266
MODINE MFG CO	131	119
MONDELEZ INTERNATIONAL INC	1,410	1,361
MONOLITHIC POWER SYSTEMS, INC	180	349
MONRO MUFFLER BRAKE, INC	344	344
NEENAH PAPER INC	173	177
NESTLE S.A	1,462	1,619
NIKE INC-CL B	2,021	2,521
NMI HOLDINGS, INC.	220	232
NORDEA BANK ABP	993	663
NORTHROP GRUMMAN CORP	1,076	1,469
NOVANTA INC	259	315
NOVARTIS AG ADR	1,450	1,545
NUVASIVE, INC	253	248
NVIDIA CORP	2,172	1,068
O'REILLY AUTOMOTIVE INC	1,484	2,755
OCCIDENTAL PETROLEUM CORP	1,455	1,412
OMNICELL, INC	236	245
ORACLE CORP	2,950	3,161
OTTER TAIL CORP	196	248
PARTY CITY HOLDCO INC	65	60
PATRICK IND INC	134	178
PFIZER INC	1,047	1,484
PLANET FITNESS INC	237	268
PRINCIPAL FDS, INC. MIDCAP FD	12,426	14,922
PROOFPOINT INC	167	251
PRUDENTIAL PLC SC	1,242	1,167
PRUDENTIAL SHORT DURATION HIGH	10,283	10,028
PS BUSINESS PARKS, INC	275	262
QUEST DIAGNOSTICS	1,119	1,416
RAYTHEON CO	1,078	1,380
RED ELECTRICA DE ESPANA SA	901	955
REGENERON PHARMACEUTICALS INC	1,853	1,868
RELX PLC	1,012	944
ROGERS COMM CL B	878	871
ROYAL DUTCH SHELL CL A	1,141	1,165
RYANAIR HOLDINGS PLC-ADR COM	725	499
RYOHIN KEIKAKU	939	962
SAFRAN SA - UNSPON ADR	1,044	1,106
SAIA, INC	115	279
SAMPO PLC UNSPONSORED ADR	908	908
SAP AKTIENGESELL ADS	1,164	1,294
SEACOAST BANKING CORPORATION O	172	156
SELECTIVE INS GROUP INC	187	305
SILICON MOTION TECHNOLOGY CORP	250	173
SONOVA HOLDING AG AD	361	295
SOUTH JERSEY INDS INC	177	195
SPS COMMERCE, INC	286	330
STARBUCKS CORP COM	2,181	2,447
SUMITOMO MITSUI FINCL GRP	731	703
SUNCOR ENERGY INC	962	755
TELENOR ASA	700	775
TEXAS ROADHOUSE, INC	372	358
TPI COMPOSITES INC	337	295
UBISOFT ENTERTAIN UNSP ADR EAC	229	210
UNILEVER PLC AMER	705	888
UNITED COMMUNITY BANKS, INC	291	215
VERIZON COMMUNICATIONS	1,266	1,462
VINCI SA ADR	573	718
VISA INC	1,821	3,299
VIVENDI SA	973	918
VOLKSWAGEN AG ADR	944	849
WASTE MANAGEMENT INC	831	1,424
WINTRUST FINANCIAL CORPORATION	189	266
WOLTERS KLUWER S/ADR	674	1,056
ZOETIS INC	2,166	2,395

- TIN:

TY 2018 LiquidationExplanationStmt

Name:

The Karese Foundation

EIN:

47-5125279

Statement:

As explained below, the Foundation has no plans for dissolution. This statement is submitted to report the distribution of certain assets during the year. The distributions resulted in a substantial contraction of assets.The following information is submitted in accordance with Treasury Regulation Section 1.6043-3(a)(1) and the Form 990-PF instructions:During the taxable year ending December 31, 2018, the Foundation made distributions from assets from sources other than current income.Collectively, the distributions in excess of current income totaled $895,000. This amount represents 25% or more of the Foundation's net assets of $1,586,533 (as measured by fair market value) at the beginning of the Foundation's taxable year ending December 31, 2018. Although the Foundation technically experienced a substantial contraction, it will continue in existence and has no plans for dissolution.The Foundation made distributions of cash to the grantees listed in the attachment to Part XV, Line 3a; each such grant was made solely for the charitable purpose specified therein.

- TIN:

TY 2018 OtherExpensesSchedule

Name:

The Karese Foundation

EIN:

47-5125279

Description	Revenue and Expenses per Books	Net Investment Income	Disbursements for Charitable Purposes
Administrative Fees	10,156		10,156
Bank Charges	151	151
State or Local Filing Fees	25		25

- TIN:

TY 2018 OtherIncomeSchedule2

Name:

The Karese Foundation

EIN:

47-5125279

Description	Revenue And Expenses Per Books	Net Investment Income	Adjusted Net Income
Interest Income from Note receivable	11,578	11,578

- TIN:

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

TY 2018 OtherNotesLoansRcvblLongSch

Name:

The Karese Foundation

EIN:

47-5125279

Borrower's Name	Relationship to Insider	Original Amount of Loan	Balance Due	Date of Note	Maturity Date	Repayment Terms	Interest Rate	Security Provided by Borrower	Purpose of Loan	Description of Lender Consideration	Consideration FMV
FRIENDS OF NWCS LLC			285,301				0 %

- TIN:

TY 2018 OtherProfessionalFeesSchedule

Name:

The Karese Foundation

EIN:

47-5125279

Category	Amount	Net Investment Income	Adjusted Net Income	Disbursements for Charitable Purposes
Investment Management Services	10,045	10,045

- TIN:

TY 2018 TaxesSchedule

Name:

The Karese Foundation

EIN:

47-5125279

Category	Amount	Net Investment Income	Adjusted Net Income	Disbursements for Charitable Purposes
990-PF Estimated Tax for 2018	200