TY 2018 Form 990PF

- TIN:

Form990-PF
Click to see attachment

Department of the Treasury
Internal Revenue Service

Return of Private Foundation

or Section 4947(a)(1) 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
DR AND MRS JE WATKINS SCHOLARSHIP TRUST

Number and street (or P.O. box number if mail is not delivered to street address)PO BOX 6100
Room/suite

City or town, state or province, country, and ZIP or foreign postal code
TYLER, TX75711

A Employer identification number

75-1901814

B Telephone number (see instructions)

(903) 579-8100

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

$12,057,594J 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)	1,307
2	Check .............
3	Interest on savings and temporary cash investments	54,711		54,711
4	Dividends and interest from securities...	184,069		184,069
5a	Gross rents............
b	Net rental income or (loss)
6a	Net gain or (loss) from sale of assets not on line 10		-48,970
b	Gross sales price for all assets on line 6a 351,496
7	Capital gain net income (from Part IV, line 2)...
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).......		410,730	410,730
12	Total. Add lines 1 through 11........	601,847		649,510
13	Compensation of officers, directors, trustees, etc.
14	Other employee salaries and wages......
15	Pension plans, employee benefits.......
16a	Legal fees (attach schedule).........		627	627
b	Accounting fees (attach schedule).......		3,850	3,850
c	Other professional fees (attach schedule)....		72,733	72,733
17	Interest...............
18	Taxes (attach schedule) (see instructions)...		42,540	32,426
19	Depreciation (attach schedule) and depletion...		56,183	56,183
20	Occupancy..............
21	Travel, conferences, and meetings.......
22	Printing and publications..........
23	Other expenses (attach schedule).......		13,768	13,768
24	Total operating and administrative expenses.
	Add lines 13 through 23..........	189,701		179,587	0
25	Contributions, gifts, grants paid.......	519,926			519,926
26	Total expenses and disbursements. Add lines 24 and 25	709,627		179,587	519,926
27	Subtract line 26 from line 12:
a	Excess of revenue over expenses and disbursements	-107,780
b	Net investment income (if negative, enter -0-)			469,923
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.............	960,277
	2	Savings and temporary cash investments.........	8,986,755	288,096	288,096
	3	Accounts receivable 18,964
		Less: allowance for doubtful accounts	9,352	18,964	18,964
	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)
		Less: allowance for doubtful accounts
	8	Inventories for sale or use..............
	9	Prepaid expenses and deferred charges..........	13,660	1,382	1,382
	10a	Investments—U.S. and state government obligations (attach schedule)
	b	Investments—corporate stock (attach schedule).......
	c	Investments—corporate bonds (attach schedule).......		4,406,485	4,296,015
	11	Investments—land, buildings, and equipment: basis
		Less: accumulated depreciation (attach schedule)
	12	Investments—mortgage loans.............
	13	Investments—other (attach schedule)..........	126,170	5,560,262	4,773,197
	14	Land, buildings, and equipment: basis
		Less: accumulated depreciation (attach schedule)	230,473
	15	Other assets (describe )	15,361		2,679,940
	16	Total assets (to be completed by all filers—see the
		instructions. Also, see page 1, item I)	10,342,048	10,275,189	12,057,594
	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
		Foundations that follow SFAS 117, check here
		and complete lines 24 through 26 and lines 30 and 31.
	24	Unrestricted..................	10,342,048	10,275,189
	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
	30	Total net assets or fund balances (see instructions).....	10,342,048	10,275,189
	31	Total liabilities and net assets/fund balances (see instructions).	10,342,048	10,275,189

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

10,342,048

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

-107,780

Other increases not included in line 2 (itemize) bullet

40,921

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

10,275,189

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 .

10,275,189

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	P	2018-01-01	2018-12-31
b	118 ACR MCCUNE SURVEY	P	2005-12-02	2018-05-23
c	Capital Gain Dividends
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	165,372	159,705	5,667
b	147,500	240,761	-93,261
c			38,624
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			5,667
b			-93,261
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	-48,970
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	5,667

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	463,672	10,614,056	0.04369
2016	425,734	9,546,600	0.04460
2015	319,108	8,794,065	0.03629
2014	325,000	7,279,847	0.04464
2013	321,960	6,562,188	0.04906

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

0.218274

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 ......

0.043655

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

12,569,712

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

548,731

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

4,699

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

553,430

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

519,926

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	9,398
	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	9,398
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	9,398
6	Credits/Payments:

a	2018 estimated tax payments and 2017 overpayment credited to 2018	6a	10,780
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	10,780
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	1,382
11	Enter the amount of line 10 to be: Credited to 2019 estimated tax1,382	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?.........

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

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

By language in the governing instrument, or

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

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

Yes

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

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

Yes

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

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

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

Yes

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

or 4942(j)(5) for calendar year 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

N/A

The books are in care of bullet

JEFF CHEAVENS Telephone no. bullet

(903) 579-8100

Located at bullet

PO BOX 6100TYLERTX ZIP+4 bullet

75711

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
TEXAS BANK TRUST	Trustee 2.00	0
PO BOX 6100 TYLER,TX75711	Trustee 2.00	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
NONE









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
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

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

8,244,131

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

1,816,712

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

2,700,286

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

12,761,129

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

12,761,129

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

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

191,417

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

12,569,712

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

628,486

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

628,486

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

9,398

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

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

9,398

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

619,088

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

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

619,088

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

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

619,088

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 ..........

519,926

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

519,926

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

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

519,926

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	(c) 2017	(d) 2018
1 Distributable amount for 2018 from Part XI, line 7			619,088
2 Undistributed income, if any, as of the end of 2018:
a Enter amount for 2017 only.......		519,926
b Total for prior years:20, 20, 20
3 Excess distributions carryover, if any, to 2018:
a From 2013......
b From 2014......
c From 2015......
d From 2016......
e From 2017......
fTotal of lines 3a through e........
4Qualifying distributions for 2018 from Part
XII, line 4: $ 519,926
a Applied to 2017, but not more than line 2a		519,926
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 2018 distributable amount.....
e Remaining amount distributed out of corpus
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
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 ..........			619,088
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 ......
10 Analysis of line 9:
a Excess from 2014....
b Excess from 2015....
c Excess from 2016....
d Excess from 2017....
e Excess from 2018....

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).)

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
TYLER JR COLLEGE PO BOX 9020 TYLER,TX75711	NONE	PC	SCHOLARSHIP FUND	166,376
TULANE UNIVERSITY EDUCATIONAL FUND 1430 TULANE AVE STE 34 NEW ORLEANS,LA70112	NONE	PC	SCHOLARSHIP FUND	166,376
STEPHEN F AUSTIN STATE UNIVERSITY PO BOX 13052 NACOGDOCHES,TX75962	NONE	PC	SCHOLARSHIP FUND	93,587
KILGORE COLLEGE 1100 BROADWAY KILGORE,TX75662	NONE	PC	SCHOLARSHIP FUND	93,587
Total ................................. 3a				519,926

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	54,711
4 Dividends and interest from securities....			14	184,069
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	-48,970
9 Net income or (loss) from special events:
10 Gross profit or (loss) from sales of inventory
11 Other revenue: aRoyalty Income From K-1			15	23,553
bROYALTY INTEREST			15	387,177
c
d
e
12 Subtotal. Add columns (b), (d), and (e)..				600,540

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

600,540

(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:	18007218
Software Version:	2018v3.1

Form 990PF - Special Condition Description:

Special Condition Description

- TIN:

TY 2018 AccountingFeesSchedule

Name:

DR AND MRS JE WATKINS SCHOLARSHIP TRUST

EIN:

75-1901814

Software ID:

18007218

Software Version:

2018v3.1

Category	Amount	Net Investment Income	Adjusted Net Income	Disbursements for Charitable Purposes
ACCOUNTING FEES	3,850	3,850	0	0

- TIN:

TY 2018 InvestmentsCorpBondsSchedule

Name:

DR AND MRS JE WATKINS SCHOLARSHIP TRUST

EIN:

75-1901814

Software ID:

18007218

Software Version:

2018v3.1

Name of Bond	End of Year Book Value	End of Year Fair Market Value
VANG INFLATION	404,673	387,563
VANG H/Y	281,000	257,239
AMAZON COM INC BOND	100,978	99,747
AMERICAN EXPRESS CREDIT MTN	97,970	98,020
APPLE INC	96,845	97,041
APPLE INC	99,560	98,683
AUTOMATIC DATA PROCESSING	103,872	99,190
BB&T CORP	99,072	97,896
BANK OF AMERICA	100,220	98,640
BERKSHIRE HATHAWAY INC	99,764	98,688
BOEING CO	98,967	97,050
CATERPILLAR FINL SERVICE MTN	100,000	97,712
CATERPILLAR FINL SVCS MTNS BE	103,100	99,401
CHEVRON CORP	100,000	97,388
CISCO SYS INC	99,000	98,675
COCA COLA CO	103,535	101,273
COLGATE PALMOLIVE CO MTNS BE	103,436	100,504
COMCAST CORP	100,045	97,327
EATON VANCE FLOATING RATE	25,000	23,744
EXXON MOBIL CORP	100,890	98,338
HSBC USA INC	99,875	98,990
ISHARES US PREFERRED STOCK ETF	95,387	85,575
JOHNSON & JOHNSON	97,791	93,922
MANUFACTURER & tRADERS tRUST CO	99,680	96,082
MERCK & cO INC	97,984	98,654
MERCK & CO INC	100,100	98,061
MICROSOFT CORP	100,946	99,172
MICROSFOT CORP	96,235	97,147
OCCIDENTAL PETROLEUM CORP	100,080	99,439
OCCIDENTAL PETROLEUM CORP	99,997	97,538
PFIZER INC	98,872	98,062
PRECISION CASTPARTS CORP	99,396	97,236
PROCTER & GAMBLE CO	99,578	98,446
QUALCOMM INC	99,750	98,610
TOYOTA MOTOR CREDIT CORP MTN	99,535	99,462
TOYOTA MOTOR CREDIT CORP	100,091	97,132
US BANCORP MTNS BK ENT	99,275	99,520
WAL-MART STORES INC	103,552	101,007
WELLS FARGO & CO	100,434	99,031
WELLS FARGO BANK NA MULTI	100,000	98,810

- TIN:

TY 2018 InvestmentsOtherSchedule2

Name:

DR AND MRS JE WATKINS SCHOLARSHIP TRUST

EIN:

75-1901814

Software ID:

18007218

Software Version:

2018v3.1

Category/ Item	Listed at Cost or FMV	Book Value	End of Year Fair Market Value
BRANDES INT'L EQUITY FD	AT COST	997,160	857,282
BRANDES EMERGING MKTS	AT COST	515,000	421,199
JANUS HENDERSON GLOBAL	AT COST	300,382	275,496
NUVEEN SMALL CAP	AT COST	204,140	153,149
PIMCO COMMODITY REAL	AT COST	435,729	355,850
VANG EXTENDED	AT COST	147,590	129,759
VANGUARD 500	AT COST
VANG INTERM	AT COST
Allergan PLC	AT COST	16,916	13,366
ACCENTURE PLC	AT COST	63,521	56,404
EATON CORP PLC	AT COST	24,515	20,598
JOHNSON CTLS INTL	AT COST	31,440	23,720
AT&T	AT COST	26,286	19,978
ABBVIE INC	AT COST	21,537	18,438
ALLIANCE DATA SYSTEM CORP	AT COST	25,996	15,008
THE ALLSTATE CORP	AT COST	20,254	16,526
AMERICAN EXPRESS CO	AT COST	19,720	19,064
AMERISOURCEBERGEN CORP	AT COST	18,871	14,880
AMGEN INC	AT COST	37,513	38,934
APACHE CORP	AT COST	36,483	21,000
APPLIED MATERIALS INC	AT COST	48,341	29,466
AUTODESK INC	AT COST	21,843	25,722
BP P L C SPONSORED ADR	AT COST	21,407	18,960
BED BATH & BEYOND	AT COST	11,502	5,660
BHP BILLITON LTD ADS	AT COST	28,671	28,974
BIOGEN IDEC INC	AT COST	14,734	15,046
BOEING COMPANY COMMON STK	AT COST	17,508	16,125
CIGNA CORP NEW	AT COST	13,622	13,868
CME GROUP INC	AT COST	30,908	37,624
CARDINAL HEALTH INC	AT COST	25,186	17,840
CHEVRON CORPORATION	AT COST	98,485	87,032
CISCO SYSTEMS INC	AT COST	19,947	21,665
COLGATE PALMOLIVE CO COM	AT COST	69,774	59,520
CONOCO PHILLIPS	AT COST	23,568	24,940
DUKE ENERGY CORP NEW COM	AT COST	24,222	25,890
ECOLAB INC	AT COST	41,454	44,205
EMERSON ELECTRIC COMPANY	AT COST	14,301	11,950
EXXON MOBIL CORP	AT COST	52,161	40,914
FORTIVE CORP	AT COST	22,432	20,298
FRANKLIN RESOURCES INC	AT COST	17,902	11,864
GAP INC	AT COST	13,214	10,304
GENERAL MILLS	AT COST	23,132	15,576
GLAXOSMITHKLINE PLC	AT COST	14,794	15,284
INTEL CORP	AT COST	27,015	28,158
INTERCONTINENTAL EXCHANGE	AT COST	28,318	30,132
JP MORGAN CHASE & CO	AT COST	55,349	48,810
JP MORGAN MID CAP GWTH SELECT	AT COST	141,498	121,633
KIMBERLY CLARK CORP	AT COST	23,137	22,788
L BRANDS, INC	AT COST	24,464	12,835
ELI LILLY COMPANY	AT COST	16,765	23,144
LOWES COMPANIES INC	AT COST	20,323	18,472
MASTERCARD INC	AT COST	50,386	56,595
MCDONALDS CORP COM	AT COST	16,172	17,757
MERCK & CO INC NEW COM	AT COST	11,519	15,282
MONDELEZ INTL INC COM	AT COST	25,685	24,018
NEXTERA ENERGY INC COM	AT COST	15,202	17,382
NIKE INC CL B	AT COST	12,811	14,828
NORDSTROM INC	AT COST	14,452	13,983
NUCOR CORP	AT COST	32,514	25,905
OPPENHEIMER INTL GWTH FUND	AT COST	652,800	508,754
ORACLE CORP	AT COST	23,906	22,575
PACCAR INC	AT COST	14,999	11,428
PAYPAL HLDGS INC	AT COST	23,361	25,227
PEPSICO INC COMMON	AT COST	21,841	22,096
PFIZER	AT COST	18,315	21,825
PROCTOR & GAMBLE	AT COST	67,462	73,536
PRUDENTIAL FINANCIAL INC	AT COST	35,323	24,465
QUALCOMM INC	AT COST	26,430	22,764
SCHLUMBERGER LIMITED	AT COST	22,784	10,824
SHIRE PLC	AT COST	30,354	34,808
THE SOUTHERN COMPANY COMMON	AT COST	9,377	8,784
STARBUCKS CORP	AT COST	17,838	19,320
TEXAS INSTRUMENTS INC	AT COST	32,754	28,350
TRAVELERS COMPANIES INC	AT COST	27,523	23,950
US BANCORP	AT COST	27,277	22,850
UNITED PARCEL SERVICE	AT COST	21,287	19,506
VANGUARD EQUITY INC ADM SH	AT COST	333,895	283,459
YUM BRANDS INC	AT COST	24,965	27,576

- TIN:

TY 2018 LegalFeesSchedule

Name:

DR AND MRS JE WATKINS SCHOLARSHIP TRUST

EIN:

75-1901814

Software ID:

18007218

Software Version:

2018v3.1

Category	Amount	Net Investment Income	Adjusted Net Income	Disbursements for Charitable Purposes
Legal Fees	627	627	0	0

- TIN:

TY 2018 OtherExpensesSchedule

Name:

DR AND MRS JE WATKINS SCHOLARSHIP TRUST

EIN:

75-1901814

Software ID:

18007218

Software Version:

2018v3.1

Description	Revenue and Expenses per Books	Net Investment Income
INSURANCE	55	55
miscellaneous expense	24	24
ROYALTY EXPENSE	13,689	13,689

- TIN:

TY 2018 OtherIncomeSchedule2

Name:

DR AND MRS JE WATKINS SCHOLARSHIP TRUST

EIN:

75-1901814

Software ID:

18007218

Software Version:

2018v3.1

Description	Revenue And Expenses Per Books	Net Investment Income	Adjusted Net Income
Royalty Income From K-1	23,553	23,553
ROYALTY INTEREST	387,177	387,177

- TIN:

TY 2018 OtherIncreasesSchedule

Name:

DR AND MRS JE WATKINS SCHOLARSHIP TRUST

EIN:

75-1901814

Software ID:

18007218

Software Version:

2018v3.1

Description	Amount
Depletion in Excess of Basis	40,821
Timing Difference	100

- TIN:

TY 2018 OtherProfessionalFeesSchedule

Name:

DR AND MRS JE WATKINS SCHOLARSHIP TRUST

EIN:

75-1901814

Software ID:

18007218

Software Version:

2018v3.1

Category	Amount	Net Investment Income	Adjusted Net Income	Disbursements for Charitable Purposes
TRUSTEE FEES	72,733	72,733	0	0

- TIN:

TY 2018 TaxesSchedule

Name:

DR AND MRS JE WATKINS SCHOLARSHIP TRUST

EIN:

75-1901814

Software ID:

18007218

Software Version:

2018v3.1

Category	Amount	Net Investment Income
Excise Tax Payments	10,114
Foreign Tax Paid	7,090	7,090
GROSS PRODUCTION TAX	10,336	10,336
PROPERTY TAXES	15,000	15,000