Form990-PF

Department of the Treasury
Internal Revenue Service

Return of Private Foundation
or Section 4947(a)(1) Trust Treated as Private Foundation
bulletDo not enter social security numbers on this form as it may be made public.
bulletGo to www.irs.gov/Form990PF for instructions and the latest information.
OMB No. 1545-0052
2020
Open to Public Inspection
For calendar year 2020, or tax year beginning 01-01-2020 , and ending 12-31-2020
Name of foundation
THE KENNEDY-HERTERICH FOUNDATION
 
Number and street (or P.O. box number if mail is not delivered to street address)PO BOX 675
  Room/suite
City or town, state or province, country, and ZIP or foreign postal code
BLOWING ROCK, NC28605
A Employer identification number

81-3277711
B Telephone number (see instructions)

(843) 709-0140
C bullet
G Check all that apply:

D 1. Foreign organizations, check here............. bullet
2. Foreign organizations meeting the 85%
test, check here and attach computation ... bullet
E bullet
H Check type of organization:
F bullet
I Fair market value of all assets at end
of year (from Part II, col. (c),
line 16)bullet$9,501,160J Accounting method:
 
(Part I, column (d) must be on cash basis.)
Part I Analysis of Revenue and Expenses (The total of amounts in columns (b), (c), and (d) may not necessarily equal the amounts in column (a) (see instructions).) (a) Revenue and
expenses per
books 		(b) Net investment
income 		(c) Adjusted net
income 		(d) Disbursements
for charitable
purposes
(cash basis only)
Revenue 1 Contributions, gifts, grants, etc., received (attach schedule)  
2 Check bullet.............
3 Interest on savings and temporary cash investments 851 851  
4 Dividends and interest from securities... 170,771 170,771  
5a Gross rents............      
b Net rental income or (loss)  
6a Net gain or (loss) from sale of assets not on line 10 443,493
b Gross sales price for all assets on line 6a 1,889,918
7 Capital gain net income (from Part IV, line 2)... 443,493
8 Net short-term capital gain.........  
9 Income modifications...........  
10a Gross sales less returns and allowances  
b Less: Cost of goods sold....  
c Gross profit or (loss) (attach schedule).....    
11 Other income (attach schedule).......      
12 Total. Add lines 1 through 11........ 615,115 615,115  
Operating and Administrative Expenses 13 Compensation of officers, directors, trustees, etc. 72,000 36,000   36,000
14 Other employee salaries and wages......        
15 Pension plans, employee benefits....... 23,592 11,796   11,796
16a Legal fees (attach schedule).........        
b Accounting fees (attach schedule)....... Click to see attachment 3,232 1,616   1,616
c Other professional fees (attach schedule)....        
17 Interest...............        
18 Taxes (attach schedule) (see instructions)... Click to see attachment 7,637 75   75
19 Depreciation (attach schedule) and depletion... Click to see attachment 490 246  
20 Occupancy..............        
21 Travel, conferences, and meetings....... 6,225 1,245   4,980
22 Printing and publications..........        
23 Other expenses (attach schedule)....... Click to see attachment 29,041 27,646   1,395
24 Total operating and administrative expenses.
Add lines 13 through 23.......... 142,217 78,624   55,862
25 Contributions, gifts, grants paid....... 338,896 338,896
26 Total expenses and disbursements. Add lines 24 and 25 481,113 78,624   394,758
27 Subtract line 26 from line 12:
a Excess of revenue over expenses and disbursements 134,002
b Net investment income (if negative, enter -0-) 536,491
c Adjusted net income (if negative, enter -0-)...  
For Paperwork Reduction Act Notice, see instructions.
Cat. No. 11289X Form 990-PF (2020)
Form 990-PF (2020)
Page 2
Part II Balance Sheets Attached schedules and amounts in the description column
should be for end-of-year amounts only. (See instructions.) 		Beginning of year End of year
(a) Book Value (b) Book Value (c) Fair Market Value
Assets 1 Cash—non-interest-bearing............. 28,556 153,224 153,224
2 Savings and temporary cash investments......... 169,806 185,819 185,819
3 Accounts receivable bullet  
Less: allowance for doubtful accounts bullet        
4 Pledges receivable bullet  
Less: allowance for doubtful accounts bullet        
5 Grants receivable.................      
6 Receivables due from officers, directors, trustees, and other
disqualified persons (attach schedule) (see instructions).....      
7 Other notes and loans receivable (attach schedule) bullet  
Less: allowance for doubtful accounts bullet        
8 Inventories for sale or use..............      
9 Prepaid expenses and deferred charges.......... 19,054 14,778 14,778
10a Investments—U.S. and state government obligations (attach schedule)      
b Investments—corporate stock (attach schedule)....... 8,394,028 Click to see attachment9,146,892 9,146,892
c Investments—corporate bonds (attach schedule).......      
11 Investments—land, buildings, and equipment: basis bullet  
Less: accumulated depreciation (attach schedule) bullet        
12 Investments—mortgage loans.............      
13 Investments—other (attach schedule)..........      
14 Land, buildings, and equipment: basis bullet2,610
Less: accumulated depreciation (attach schedule) bullet2,163 937 Click to see attachment447 447
15 Other assets (describe bullet)      
16 Total assets (to be completed by all filers—see the
instructions. Also, see page 1, item I) 8,612,381 9,501,160 9,501,160
Liabilities 17 Accounts payable and accrued expenses.......... 94  
18 Grants payable.................    
19 Deferred revenue.................    
20 Loans from officers, directors, trustees, and other disqualified persons    
21 Mortgages and other notes payable (attach schedule)......    
22 Other liabilities (describe bullet)   Click to see attachment167
23 Total liabilities (add lines 17 through 22)......... 94 167
Net Assets or Fund Balances Foundations that follow FASB ASC 958, check here bullet
and complete lines 24, 25, 29 and 30.
24 Net assets without donor restrictions........... 8,612,287 9,500,993
25 Net assets with donor restrictions............    
Foundations that do not follow FASB ASC 958, check here bullet
and complete lines 26 through 30.
26 Capital stock, trust principal, or current funds........    
27 Paid-in or capital surplus, or land, bldg., and equipment fund    
28 Retained earnings, accumulated income, endowment, or other funds    
29 Total net assets or fund balances (see instructions)..... 8,612,287 9,500,993
30 Total liabilities and net assets/fund balances (see instructions). 8,612,381 9,501,160
Part III
Analysis of Changes in Net Assets or Fund Balances
1
Total net assets or fund balances at beginning of year—Part II, column (a), line 29 (must agree with end-of-year figure reported on prior year’s return) ...............
1
8,612,287
2
Enter amount from Part I, line 27a .....................
2
134,002
3
Other increases not included in line 2 (itemize) bulletClick to see attachment
3
754,704
4
Add lines 1, 2, and 3 ..........................
4
9,500,993
5
Decreases not included in line 2 (itemize) bullet
5
 
6
Total net assets or fund balances at end of year (line 4 minus line 5)—Part II, column (b), line 29 .
6
9,500,993
Form 990-PF (2020)
Form 990-PF (2020)
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 T. ROWE PRICE SHORT TERM BOND FUND P 2019-12-05 2020-03-24
b T. ROWE PRICE HIGH YIELD FD INV P 2016-01-05 2020-01-14
c VANGUARD TOTAL INTL STK INDEX ADMI P 2016-03-30 2020-06-29
d AMERICAN FD EUROPACIFIC GWTH FD CL P 2017-04-28 2020-01-14
e T. ROWE PRICE HIGH YIELD FD INV P 2016-01-05 2020-03-24
VANGUARD TOTAL INTL STK INDEX ADMI P 2016-03-30 2020-12-30
AMERICAN FD EUROPACIFIC GWTH FD CL P 2017-04-28 2020-06-29
T. ROWE PRICE HIGH YIELD FD INV P 2016-01-05 2020-06-29
VANGUARD 500 INDEX ADMIRAL P 2016-05-12 2020-06-29
AMERICAN FD EUROPACIFIC GWTH FD CL P 2017-04-28 2020-09-30
VANGUARD EQUITY INCOME FD ADMIRAL SH P 2016-03-30 2020-01-15
VANGUARD 500 INDEX ADMIRAL P 2016-05-12 2020-09-30
AMERICAN FD EUROPACIFIC GWTH FD CL P 2017-04-28 2020-12-30
VANGUARD EQUITY INCOME ADMIRAL P 2016-03-30 2020-06-29
VANGUARD 500 INDEX ADMIRAL P 2016-05-12 2020-12-30
DIAMOND HILL SMALL MID CAP FD CL P 2017-04-28 2020-01-14
VANGUARD EQUITY INCOME ADMIRAL P 2016-03-30 2020-12-30
VANGUARD 500 INDEX FD ADMIRAL SHRS P 2016-05-12 2020-01-15
DIAMOND HILL SMALL MID CAP P 2017-04-28 2020-06-29
VANGUARD EXTENDED MARKET INDEX ADM P 2016-03-30 2020-06-29
WASH SALES P 2020-12-31 2020-12-31
DIAMOND HILL SMALL MID CAP P 2017-04-28 2020-09-30
VANGUARD EXTENDED MARKET INDEX ADM P 2016-03-30 2020-09-30
DIAMOND HILL SMALL MID CAP P 2017-04-28 2020-12-30
VANGUARD EXTENDED MARKET INDEX ADM P 2016-03-30 2020-12-30
DODGE & COX INCOME FUND P 2014-11-17 2020-01-14
VANGUARD EXTENDED MARKET INDEX ADM P 2016-03-30 2020-01-15
DODGE & COX INCOME FUND P 2014-11-17 2020-03-24
VANGUARD INFLATION PROTECTED SECS P 2017-04-28 2020-01-15
HARBOR CAP APPRECIATION FUND INST CL P 2012-11-15 2020-01-14
VANGUARD INFLATION PROTECTED SECS P 2017-04-28 2020-03-24
HARBOR CAP APPRECIATION INST P 2012-11-15 2020-06-29
VANGUARD TOTAL BOND MKT INDEX P 2017-04-28 2020-01-15
HARBOR CAP APPRECIATION INST P 2012-11-15 2020-09-30
VANGUARD TOTAL BOND MKT INDEX P 2017-04-28 2020-03-24
HARBOR CAP APPRECIATION INST P 2012-11-15 2020-12-30
VANGUARD TOTAL INTL STK INDEX ADMI P 2016-03-30 2020-01-15
(e)
Gross sales price 		(f)
Depreciation allowed
(or allowable) 		(g)
Cost or other basis
plus expense of sale 		(h)
Gain or (loss)
(e) plus (f) minus (g)
a 1   1  
b 1,577   1,600 -23
c 63,602   59,672 3,930
d 15,411   12,799 2,612
e 4,905   6,358 -1,453
53,446   40,930 12,516
92,075   80,298 11,777
1,093   1,202 -109
150,827   95,291 55,536
16,726   13,345 3,381
9,068   7,464 1,604
56,586   32,577 24,009
75,528   50,264 25,264
38,123   36,743 1,380
39,582   20,618 18,964
629   576 53
28,853   23,760 5,093
41,471   23,495 17,976
46,013   48,581 -2,568
77,586   58,450 19,136
873     873
11,866   11,657 209
24,653   16,723 7,930
66,757   53,651 13,106
75,318   40,293 35,025
2,262   2,214 48
10,039   6,897 3,142
217,844   222,234 -4,390
426   444 -18
36,610   25,559 11,051
41,775   41,095 680
113,613   71,748 41,865
651   653 -2
60,432   32,267 28,165
291,154   283,726 7,428
23,768   13,836 9,932
11,190   9,404 1,786
Complete only for assets showing gain in column (h) and owned by the foundation on 12/31/69 (l)
Gains (Col. (h) gain minus
col. (k), but not less than -0-) or
Losses (from col.(h))
(i)
F.M.V. as of 12/31/69 		(j)
Adjusted basis
as of 12/31/69 		(k)
Excess of col. (i)
over col. (j), if any
a        
b       -23
c       3,930
d       2,612
e       -1,453
      12,516
      11,777
      -109
      55,536
      3,381
      1,604
      24,009
      25,264
      1,380
      18,964
      53
      5,093
      17,976
      -2,568
      19,136
      873
      209
      7,930
      13,106
      35,025
      48
      3,142
      -4,390
      -18
      11,051
      680
      41,865
      -2
      28,165
      7,428
      9,932
      1,786
2 Capital gain net income or (net capital loss) Bracket If gain, also enter in Part I, line 7
If (loss), enter -0- in Part I, line 7		 Bracket 2 443,493
3 Net short-term capital gain or (loss) as defined in sections 1222(5) and (6):
If gain, also enter in Part I, line 8, column (c) (see instructions). If (loss), enter -0-
in Part I, line 8 ................... 		Bracket 3 873
Part V
Qualification Under Section 4940(e) for Reduced Tax on Net Investment Income
SECTION 4940(e) REPEALED ON DECEMBER 20, 2019 - DO NOT COMPLETE
1 Reserved
(a)
Reserved 		(b)
Reserved 		(c)
Reserved 		(d)
Reserved
2
Reserved...........................
2
3
Reserved...........................
3
4
Reserved...........................
4
5
Reserved...........................
5
6
Reserved...........................
6
7
Reserved...........................
7
8
Reserved,..........................
8
Form 990-PF (2020)
Form 990-PF (2020)
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 Bullet and enter “N/A" on line 1. Bracket for line 1a
Date of ruling or determination letter:   (attach copy of letter if necessary–see instructions)
b Reserved................................ 1 7,457
c All other domestic foundations enter 1.39% 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 7,457
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 7,457
6 Credits/Payments:
a 2020 estimated tax payments and 2019 overpayment credited to 2020 6a 7,374
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 7,374
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.......Bullet 9 83
10 Overpayment. If line 7 is more than the total of lines 5 and 8, enter the amount overpaid...Bullet 10  
11 Enter the amount of line 10 to be: Credited to 2021 estimated taxBullet   RefundedBullet 11  
Part VII-A
Statements Regarding Activities
1a
During the tax year, did the foundation attempt to influence any national, state, or local legislation or did
Yes
No
it participate or intervene in any political campaign? ....................
1a
 
No
b
Did it spend more than $100 during the year (either directly or indirectly) for political purposes? See the instructions
for the definition.................................
1b
 
No
If the answer is "Yes" to 1a or 1b, attach a detailed description of the activities and copies of any materials
published or distributed by the foundation in connection with the activities.
c
Did the foundation file Form 1120-POL for this year?.....................
1c
 
No
d
Enter the amount (if any) of tax on political expenditures (section 4955) imposed during the year:
(1) On the foundation. bullet$   (2) On foundation managers.bullet$  
e
Enter the reimbursement (if any) paid by the foundation during the year for political expenditure tax imposed
on foundation managers.bullet$  
2
Has the foundation engaged in any activities that have not previously been reported to the IRS?.......
2
 
No
If "Yes," attach a detailed description of the activities.
3
Has the foundation made any changes, not previously reported to the IRS, in its governing instrument, articles
of incorporation, or bylaws, or other similar instruments? If "Yes," attach a conformed copy of the changes....
3
 
No
4a
Did the foundation have unrelated business gross income of $1,000 or more during the year?........
4a
 
No
b
If "Yes," has it filed a tax return on Form 990-T for this year?...................
4b
 
 
5
Was there a liquidation, termination, dissolution, or substantial contraction during the year?.........
5
 
No
If "Yes," attach the statement required by General Instruction T.
6
Are the requirements of section 508(e) (relating to sections 4941 through 4945) satisfied either:
  • By language in the governing instrument, or
  • By state legislation that effectively amends the governing instrument so that no mandatory directions
    • that conflict with the state law remain in the governing instrument?................
    6
    Yes
     
    7
    Did the foundation have at least $5,000 in assets at any time during the year? If "Yes," complete Part II, col. (c),
    and Part XV..................................
    7
    Yes
     
    8a
    Enter the states to which the foundation reports or with which it is registered (see instructions)
    bulletNC
    b
    If the answer is "Yes" to line 7, has the foundation furnished a copy of Form 990-PF to the Attorney
    General (or designate) of each state as required by General Instruction G? If "No," attach explanation .
    8b
     
     
    9
    Is the foundation claiming status as a private operating foundation within the meaning of section 4942(j)(3)
    or 4942(j)(5) for calendar year 2020 or the taxable year beginning in 2020? See the instructions for Part XIV.
    If "Yes," complete Part XIV .............................
    9
     
    No
    10
    Did any persons become substantial contributors during the tax year? If "Yes," attach a schedule listing their names
    and addresses. ...............................
    10
     
    No
    Form 990-PF (2020)
    Form 990-PF (2020)
    Page 5
    Part VII-A
    Statements Regarding Activities (continued)
    11
    At any time during the year, did the foundation, directly or indirectly, own a controlled entity within the
    meaning of section 512(b)(13)? If "Yes," attach schedule. See instructions .............
    11
     
    No
    12
    Did the foundation make a distribution to a donor advised fund over which the foundation or a disqualified person had
    advisory privileges? If "Yes," attach statement. See instructions.................
    12
     
    No
    13
    Did the foundation comply with the public inspection requirements for its annual returns and exemption application?
    13
    Yes
     
    Website addressbulletN/A
    14
    The books are in care ofbulletKARYN KENNEDY HERTERICH Telephone no.bullet (828) 295-3700

    Located atbulletPO BOX 675BLOWING ROCKNC ZIP+4bullet28605
    15
    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
    15
     
    16 At any time during calendar year 2020, 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
    No
    1a
    During the year did the foundation (either directly or indirectly):
    (1) Engage in the sale or exchange, or leasing of property with a disqualified person?
    (2) Borrow money from, lend money to, or otherwise extend credit to (or accept it from)
    a disqualified person?......................
    (3) Furnish goods, services, or facilities to (or accept them from) a disqualified person?
    (4) Pay compensation to, or pay or reimburse the expenses of, a disqualified person?
    (5) Transfer any income or assets to a disqualified person (or make any of either available
    for the benefit or use of a disqualified person)?...............
    (6) Agree to pay money or property to a government official? (Exception. Check "No"
    if the foundation agreed to make a grant to or to employ the official for a period
    after termination of government service, if terminating within 90 days.).......
    b
    If any answer is "Yes" to 1a(1)–(6), did any of the acts fail to qualify under the exceptions described in Regulations
    section 53.4941(d)-3 or in a current notice regarding disaster assistance? See instructions ........
    1b
     
     
    ........bullet
    c
    Did the foundation engage in a prior year in any of the acts described in 1a, other than excepted acts,
    that were not corrected before the first day of the tax year beginning in 2020?.............
    1c
     
     
    2
    Taxes on failure to distribute income (section 4942) (does not apply for years the foundation was a private
    operating foundation defined in section 4942(j)(3) or 4942(j)(5)):
    a
    At the end of tax year 2020, did the foundation have any undistributed income (lines 6d
    and 6e, Part XIII) for tax year(s) beginning before 2020?.............
    If "Yes," list the years bullet20, 20, 20, 20
    b
    Are there any years listed in 2a for which the foundation is not applying the provisions of section 4942(a)(2)
    (relating to incorrect valuation of assets) to the year’s undistributed income? (If applying section 4942(a)(2)
    to all years listed, answer "No" and attach statement—see instructions.) ..............
    2b
     
     
    c
    If the provisions of section 4942(a)(2) are being applied to any of the years listed in 2a, list the years here.
    bullet20, 20, 20, 20
    3a
    Did the foundation hold more than a 2% direct or indirect interest in any business enterprise at
    any time during the year?......................
    b
    If "Yes," did it have excess business holdings in 2020 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 2020.)..................
    3b
     
     
    4a
    Did the foundation invest during the year any amount in a manner that would jeopardize its charitable purposes?
    4a
     
    No
    b
    Did the foundation make any investment in a prior year (but after December 31, 1969) that could jeopardize its
    charitable purpose that had not been removed from jeopardy before the first day of the tax year beginning in 2020?
    4b
     
    No
    Form 990-PF (2020)
    Form 990-PF (2020)
    Page 6
    Part VII-B
    Statements Regarding Activities for Which Form 4720 May Be Required (continued)
    5a
    During the year did the foundation pay or incur any amount to:
    Yes
    No
    (1) Carry on propaganda, or otherwise attempt to influence legislation (section 4945(e))?
    (2) Influence the outcome of any specific public election (see section 4955); or to carry
    on, directly or indirectly, any voter registration drive?.............
    (3) Provide a grant to an individual for travel, study, or other similar purposes?
    (4) Provide a grant to an organization other than a charitable, etc., organization described
    in section 4945(d)(4)(A)? See instructions................
    (5) Provide for any purpose other than religious, charitable, scientific, literary, or
    educational purposes, or for the prevention of cruelty to children or animals?.....
    b
    If any answer is "Yes" to 5a(1)–(5), did any of the transactions fail to qualify under the exceptions described in
    Regulations section 53.4945 or in a current notice regarding disaster assistance? See instructions ......
    5b
     
     
    .........bullet
    c
    If the answer is "Yes" to question 5a(4), does the foundation claim exemption from the
    tax because it maintained expenditure responsibility for the grant?..........
    If "Yes," attach the statement required by Regulations section 53.4945–5(d).
    6a
    Did the foundation, during the year, receive any funds, directly or indirectly, to pay premiums on
    a personal benefit contract?.....................
    b
    Did the foundation, during the year, pay premiums, directly or indirectly, on a personal benefit contract? ....
    6b
     
    No
    If "Yes" to 6b, file Form 8870.
    7a
    At any time during the tax year, was the foundation a party to a prohibited tax shelter transaction?
    b
    If "Yes", did the foundation receive any proceeds or have any net income attributable to the transaction? ....
    7b
     
     
    8
    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? .................
    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
    KARYN KENNEDY HERTERICH PRESIDENT
    20.00     		36,000 0 0
    PO BOX 689
    BLOWING ROCK,NC28605
    MORGAN KENNEDY HERTERICH SECRETARY/TR
    20.00     		36,000 0 0
    P O BOX 689
    BLOWING ROCK,NC28605
    DIETER K HERTERICH VICE PRESIDE
    5.00     		0 0 0
    PO BOX 689
    BLOWING ROCK,NC28605
    2 Compensation of five highest-paid employees (other than those included on line 1—see instructions). If none, enter “NONE."
    (a) Name and address of each employee paid more than $50,000 (b) Title, and average
    hours per week
    devoted to position     		(c) Compensation (d) Contributions to
    employee benefit
    plans and deferred
    compensation     		(e) Expense account,
    other allowances
    NONE
    Total number of other employees paid over $50,000...................bullet  
    Form 990-PF (2020)
    Form 990-PF (2020)
    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 N/A  
    2  
    All other program-related investments. See instructions.
    3  
    Total. Add lines 1 through 3.........................bullet  
    Form 990-PF (2020)
    Form 990-PF (2020)
    Page 8
    Part X
    Minimum Investment Return (All domestic foundations must complete this part. Foreign foundations, see instructions.)
    1
    Fair market value of assets not used (or held for use) directly in carrying out charitable, etc.,
    purposes:
    a
    Average monthly fair market value of securities...................
    1a
    8,948,273
    b
    Average of monthly cash balances.......................
    1b
    92,640
    c
    Fair market value of all other assets (see instructions)................
    1c
    15,225
    d
    Total (add lines 1a, b, and c).........................
    1d
    9,056,138
    e
    Reduction claimed for blockage or other factors reported on lines 1a and
    1c (attach detailed explanation) .............
    1e
     
    2
    Acquisition indebtedness applicable to line 1 assets..................
    2
     
    3
    Subtract line 2 from line 1d.........................
    3
    9,056,138
    4
    Cash deemed held for charitable activities. Enter 1 1/2% of line 3 (for greater amount, see
    instructions) .............................
    4
    135,842
    5
    Net value of noncharitable-use assets. Subtract line 4 from line 3. Enter here and on Part V, line 4
    5
    8,920,296
    6
    Minimum investment return. Enter 5% of line 5..................
    6
    446,015
    Part XI
    Distributable Amount (see instructions) (Section 4942(j)(3) and (j)(5) private operating foundations and certain foreign organizations check here right arrow and do not complete this part.)
    1
    Minimum investment return from Part X, line 6....................
    1
    446,015
    2a
    Tax on investment income for 2020 from Part VI, line 5......
    2a
    7,457
    b
    Income tax for 2020. (This does not include the tax from Part VI.)...
    2b
     
    c
    Add lines 2a and 2b............................
    2c
    7,457
    3
    Distributable amount before adjustments. Subtract line 2c from line 1............
    3
    438,558
    4
    Recoveries of amounts treated as qualifying distributions................
    4
     
    5
    Add lines 3 and 4............................
    5
    438,558
    6
    Deduction from distributable amount (see instructions).................
    6
     
    7
    Distributable amount as adjusted. Subtract line 6 from line 5. Enter here and on Part XIII, line 1 ...
    7
    438,558
    Part XII
    Qualifying Distributions (see instructions)
    1
    Amounts paid (including administrative expenses) to accomplish charitable, etc., purposes:
    a
    Expenses, contributions, gifts, etc.—total from Part I, column (d), line 26 ..........
    1a
    394,758
    b
    Program-related investments—total from Part IX-B..................
    1b
     
    2
    Amounts paid to acquire assets used (or held for use) directly in carrying out charitable, etc.,
    purposes...............................
    2
     
    3
    Amounts set aside for specific charitable projects that satisfy the:
    a
    Suitability test (prior IRS approval required)....................
    3a
     
    b
    Cash distribution test (attach the required schedule) .................
    3b
     
    4
    Qualifying distributions. Add lines 1a through 3b. Enter here and on Part V, line 8, and Part XIII, line 4
    4
    394,758
    5
    Foundations that qualify under section 4940(e) for the reduced rate of tax on net investment
    income. Enter 1% of Part I, line 27b. See instructions.................
    5
     
    6
    Adjusted qualifying distributions. Subtract line 5 from line 4..............
    6
    394,758
    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 (2020)
    Form 990-PF (2020)
    Page 9
    Part XIII
    Undistributed Income (see instructions)
    (a)
    Corpus     		(b)
    Years prior to 2019     		(c)
    2019     		(d)
    2020
    1 Distributable amount for 2020 from Part XI, line 7 438,558
    2 Undistributed income, if any, as of the end of 2020:
    a Enter amount for 2019 only....... 336,173
    b Total for prior years:20, 20, 20  
    3 Excess distributions carryover, if any, to 2020:
    a From 2015......  
    b From 2016......  
    c From 2017......  
    d From 2018......  
    e From 2019......  
    fTotal of lines 3a through e........  
    4Qualifying distributions for 2020 from Part
    XII, line 4: bullet$ 394,758
    a Applied to 2019, but not more than line 2a 336,173
    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 2020 distributable amount..... 58,585
    e Remaining amount distributed out of corpus  
    5 Excess distributions carryover applied to 2020.    
    (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 2019. Subtract line
    4a from line 2a. Taxable amount—see
    instructions .............     		 
    f Undistributed income for 2020. Subtract
    lines 4d and 5 from line 1. This amount must
    be distributed in 2021 ..........     		379,973
    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 2015 not
    applied on line 5 or line 7 (see instructions) ...     		 
    9Excess distributions carryover to 2021.
    Subtract lines 7 and 8 from line 6a ......     		 
    10 Analysis of line 9:
    a Excess from 2016....  
    b Excess from 2017....  
    c Excess from 2018....  
    d Excess from 2019....  
    e Excess from 2020....  
    Form 990-PF (2020)
    Form 990-PF (2020)
    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 2020, enter the date of the ruling....... bullet
     
    b Check box to indicate whether the organization is a private operating foundation described in section or
    2a Enter the lesser of the adjusted net
    income from Part I or the minimum
    investment return from Part X for each
    year listed ..........     		Tax year Prior 3 years (e) Total
    (a) 2020 (b) 2019 (c) 2018 (d) 2017
             
    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
    aThe name, address, and telephone number or e-mail address of the person to whom applications should be addressed:
    THE KENNEDY-HERTERICH FOUNDATION
    PO BOX 675
    BLOWING ROCK,NC28605
    (843) 709-0140
    bThe form in which applications should be submitted and information and materials they should include:
    CRITERIA, GUIDELINES AND APPLICATION PROCEDURAL DETAILS CAN BE PROVIDED UPON RECEIPT OF A LETTER OF INTRODUCTION.
    cAny submission deadlines:
    CRITERIA, GUIDELINES AND APPLICATION PROCEDURAL DETAILS CAN BE PROVIDED UPON RECEIPT OF A LETTER OF
    dAny restrictions or limitations on awards, such as by geographical areas, charitable fields, kinds of institutions, or other
    factors:
    CRITERIA, GUIDELINES AND APPLICATION PROCEDURAL DETAILS CAN BE PROVIDED UPON RECEIPT OF A LETTER OF INTRODUCTION.
    Form 990-PF (2020)
    Form 990-PF (2020)
    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)
    aPaid during the year
    AMERICAN COLLEGE OF BUILDING ARTS
    649 MEETING STREET
    CHARLESTON,SC29403     		BOARD MEMBER 501(C)(3) EDUCATION PROGRAMS 25,000
    BLOWING ROCK ART & HISTORY MUSEUM
    159 GINNY STEVENS LN
    BLOWING ROCK,NC28605     		NONE 501(C)(3) GENERAL OPERATING 13,500
    BLOWING ROCK CIVIC ASSOCIATION
    PO BOX 2471
    BLOWING ROCK,NC28605     		NONE 501(C)(3) GENERAL OPERATING 1,000
    CHRIST SCHOOL
    500 CHRIST SCHOOL ROAD
    ARDEN,NC28704     		BOARD MEMBER 501(C)(3) EDUCATION 5,000
    COLLEGE OF CHARLESTON ATHLETIC CLUB
    307 MEETING STREET
    CHARLESTON,SC29401     		NONE 501(C)(3) STUDENT SCHOLARSHIPS 20,000
    THE COMMUNITY CARE CLINIC
    141 HEALTH CENTER B
    BOONE,NC28607     		NONE 501(C)(3) GENERAL OPERATING 10,000
    DISABLED AMERICAN VETERANS
    PO BOX 2914
    BOONE,NC28607     		NONE 501(C)(3) GENERAL OPERATING 5,000
    THE GREEN HEART PROJECT INC
    759 KING STREET SUITE A
    CHARLESTON,SC29403     		NONE 501(C)(3) GENERAL OPERATING 17,500
    HOSPITALITY HOUSE OF BOONE
    PO BOX 309
    BOONE,NC28607     		NONE 501(C)(3) WINTER FUEL PROGRAM FOR INDIGENT FAM 15,000
    JOHN F KENNEDY CTR FOR THE PERF AR
    PO BOX 101510
    ARLINGTON,VA22210     		TRUSTEE 501(C)(3) GENERAL OPERATING 15,000
    OASIS SHRINERS CHAPTER
    604 DOUG MAYES PLACE
    CHARLOTTE,NC28262     		NONE 501(C)(3) GENERAL OPERATING 7,500
    THE PROJECT DANCE FOUNDATION
    276-H WATAUGA VILLAGE DR
    BOONE,NC28607     		NONE 501(C)(3) GENERAL OPERATING 12,500
    WOMEN'S FUND OF THE BLUE RIDGE
    895 STATE FARM RD STE403
    BOONE,NC28607     		NONE 501(C)(3) GENERAL OPERATING 10,000
    HIGH COUNTRY CAREGIVERS FOUNDATION
    468 NEW MARKET BLVD
    BOONE,NC28607     		NONE 501(C)(3) PROGRAMMING RESTRUCTURING SUPPORT 43,000
    WATAUGA COUNTY HABITAT FOR HUMANITY
    200 ARCHIE CARROLL ROAD
    BOONE,NC28607     		NONE 501(C)(3) OPERATIONS SUPPORT 2,500
    CHARLESTON SYMPHONY ORCHESTRA
    PO BOX 30818
    CHARLESTON,SC29417     		NONE 501(C)(3) OPERATIONS SUPPORT 27,500
    CHARLESTON GAILLARD CENTER
    95 CALHOUN STREET
    CHARLESTON,SC29401     		NONE 501(C)(3) OPERATIONS SUPPORT 25,000
    KIDS ON POINT
    PO BOX 22731
    CHARLESTON,SC29413     		NONE 501(C)(3) EDUCATION SUPPORT 32,500
    CAMP HAPPY DAYS
    1 CARRIAGE LANE 101-2
    CHARLESTON,SC29407     		NONE 501(C)(3) SUPPORT FOR CHILDREN WITH CANCER 30,896
    CHARLESTON HOPE
    2 PERRY STREET
    CHARLESTON,SC29403     		NONE 501(C)(3) EDUCATION SUPPORT 3,500
    CHARLESTON JUNIOR GOLF FOUNDATION
    321 WINGO WAY 201
    MT PLEASANT,SC29464     		NONE 501(C)(3) STRUCTURED EDUCATIONAL PROGRAMS 2,000
    THE CHILDREN'S PLAYHOUSE
    400 TRACY CIRCLE
    BOONE,NC28607     		NONE 501(C)(3) MUSIC, ART, AND SCIENCE PROGRAMS 15,000
    Total .................................bullet 3a 338,896
    bApproved for future payment
    Total .................................bullet 3b  
    Form 990-PF (2020)
    Form 990-PF (2020)
    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
    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 ...........     		    14 851  
    4 Dividends and interest from securities....     14 170,771  
    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 ............     		    14 443,493  
    9 Net income or (loss) from special events:          
    10 Gross profit or (loss) from sales of inventory          
    11 Other revenue: a
    b
    c
    d
    e
    12 Subtotal. Add columns (b), (d), and (e)..   615,115  
    13Total. Add line 12, columns (b), (d), and (e)..................
    13
    615,115
    (See worksheet in line 13 instructions to verify calculations.)
    Part XVI-B
    Relationship of Activities to the Accomplishment of Exempt Purposes
    Line No.
    DownArrow     		Explain below how each activity for which income is reported in column (e) of Part XVI-A contributed importantly to
    the accomplishment of the foundation’s exempt purposes (other than by providing funds for such purposes). (See
    instructions.)
    Form 990-PF (2020)
    Form 990-PF (2020)
    Page 13
    Part XVII
    Information Regarding Transfers To and Transactions and Relationships With Noncharitable Exempt Organizations
    1
    Did the organization directly or indirectly engage in any of the following with any other organization described in section 501(c) (other than section 501(c)(3) organizations) or in section 527, relating to political organizations?
    Yes
    No
    a
    Transfers from the reporting foundation to a noncharitable exempt organization of:
    (1) Cash...................................
    1a(1)
     
    No
    (2) Other assets.................................
    1a(2)
     
    No
    b
    Other transactions:
    (1) Sales of assets to a noncharitable exempt organization....................
    1b(1)
     
    No
    (2) Purchases of assets from a noncharitable exempt organization..................
    1b(2)
     
    No
    (3) Rental of facilities, equipment, or other assets.......................
    1b(3)
     
    No
    (4) Reimbursement arrangements...........................
    1b(4)
     
    No
    (5) Loans or loan guarantees.............................
    1b(5)
     
    No
    (6) Performance of services or membership or fundraising solicitations................
    1b(6)
     
    No
    c
    Sharing of facilities, equipment, mailing lists, other assets, or paid employees..............
    1c
     
    No
    d
    If the answer to any of the above is "Yes," complete the following schedule. Column (b) should always show the fair market value
    of the goods, other assets, or services given by the reporting foundation. If the foundation received less than fair market value
    in any transaction or sharing arrangement, show in column (d) the value of the goods, other assets, or services received.
    (a) Line No. (b) Amount involved (c) Name of noncharitable exempt organization (d) Description of transfers, transactions, and sharing arrangements
    2a
    Is the foundation directly or indirectly affiliated with, or related to, one or more tax-exempt organizations
    described in section 501(c) (other than section 501(c)(3)) or in section 527? ...........
    b
    If "Yes," complete the following schedule.

    (a) Name of organization (b) Type of organization (c) Description of relationship
    Sign Here
    Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
    Bullet Bullet
    May the IRS discuss this return
    with the preparer shown below?
    See instructions.
    Signature of officer or trustee Date Title
    Paid Preparer Use Only Print/Type preparer's name Preparer's Signature Date PTIN
    Firm's name SmallBullet
    		 Firm's EIN SmallBullet
    Firm's address SmallBullet


    		 Phone no.
    Form 990-PF (2020)
    Additional Data


    Software ID:  
    Software Version:  


    Form 990PF - Special Condition Description:
    Special Condition Description

    TY 2020 AccountingFeesSchedule
    Name:
    THE KENNEDY-HERTERICH FOUNDATION
    EIN:
    81-3277711
    Category Amount Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    ACCOUNTING FEES 3,232 1,616   1,616

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

    TY 2020 DepreciationSchedule
    Name:
    THE KENNEDY-HERTERICH FOUNDATION
    EIN:
    81-3277711
    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
    SOFTWARE 2017-06-22 933 778 S/L 3.0000 155 78    
    TWO I-PADS 2017-05-10 191 102 S/L 5.0000 38 19    
    TWO LAPTOPS 2017-05-10 1,486 793 S/L 5.0000 297 149    

    TY 2020 ExplnOfNonFilingWithAGStmt
    Name:
    THE KENNEDY-HERTERICH FOUNDATION
    EIN:
    81-3277711
    Statement:
    NOT REQUIRED BY STATE OF NC.

    TY 2020 InvestmentsCorpStockSchedule
    Name:
    THE KENNEDY-HERTERICH FOUNDATION
    EIN:
    81-3277711
    Name of Stock End of Year Book Value End of Year Fair Market Value
    DODGE & COX INCOME FUND 1,300,721 1,300,721
    T. ROWE PRICE HIGH YIELD 280,480 280,480
    T. ROWE PRICE SHORT TERM    
    VANGUARD INFLATION 186,059 186,059
    VANGUARD TOTAL BOND 1,303,145 1,303,145
    AMERICAN FD EUROPACIFIC 840,141 840,141
    DIAMOND HILL SMALL MID 563,903 563,903
    HARBOR CAP APPRECIATION 649,588 649,588
    VANGUARD EQUITY INCOME 1,033,410 1,033,410
    VANGUARD EXTENDED 467,111 467,111
    VANGUARD TOTAL INTL STK 838,758 838,758
    VANGUARD 500 INDEX FD 1,683,576 1,683,576

    TY 2020 LandEtcSchedule2
    Name:
    THE KENNEDY-HERTERICH FOUNDATION
    EIN:
    81-3277711
    Category / Item Cost / Other Basis Accumulated Depreciation Book Value End of Year Fair Market Value
      2,610 2,163 447 447


    TY 2020 OtherExpensesSchedule
    Name:
    THE KENNEDY-HERTERICH FOUNDATION
    EIN:
    81-3277711
    Description Revenue and Expenses per Books Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    EXPENSES        
    BANK SERVICE CHARGES 90 45   45
    INSURANCE 823 412   411
    INVESTMENT MANAGEMENT FEES 26,249 26,249    
    OFFICE EXPENSE & SUPPLIES 958 479   479
    PAYROLL SERVICE FEE 822 411   411
    POSTAGE & DELIVERY 99 50   49


    TY 2020 OtherIncreasesSchedule
    Name:
    THE KENNEDY-HERTERICH FOUNDATION
    EIN:
    81-3277711
    Description Amount
    UNREALIZED GAIN FMV 754,703
    ROUNDING ADJUSTMENT 1


    TY 2020 OtherLiabilitiesSchedule
    Name:
    THE KENNEDY-HERTERICH FOUNDATION
    EIN:
    81-3277711
    Description Beginning of Year - Book Value End of Year - Book Value
    EXCISE TAX PAYABLE   83
    PAYROLL TAX PAYABLE   84


    TY 2020 TaxesSchedule
    Name:
    THE KENNEDY-HERTERICH FOUNDATION
    EIN:
    81-3277711
    Category Amount Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    EXCISE TAX EXPENSE 7,487      
    TAXES & LICENSES 150 75   75