TY 2023 Form 990PF

- TIN:

Form990-PF

Department of the Treasury
Internal Revenue Service

Return of Private Foundation

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

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

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

OMB No. 1545-0047

2023

Open to Public Inspection

For calendar year 2023, or tax year beginning 01-01-2023 , and ending 12-31-2023

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 right arrow

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............. right arrow

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

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

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 ....... right arrow

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

$14,342,810J 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)
2	Check .............
3	Interest on savings and temporary cash investments
4	Dividends and interest from securities...	334,397		334,397
5a	Gross rents............
b	Net rental income or (loss)
6a	Net gain or (loss) from sale of assets not on line 10		87,811
b	Gross sales price for all assets on line 6a 1,321,712
7	Capital gain net income (from Part IV, line 2)...			87,811
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).......	List of Attached Documents: // Content	631,432	631,432
12	Total. Add lines 1 through 11........	1,053,640		1,053,640
13	Compensation of officers, directors, trustees, etc.	94,251		94,251	0
14	Other employee salaries and wages......
15	Pension plans, employee benefits.......
16a	Legal fees (attach schedule).........
b	Accounting fees (attach schedule).......	List of Attached Documents: // Content	5,600	5,600	0
c	Other professional fees (attach schedule)....
17	Interest...............
18	Taxes (attach schedule) (see instructions)...	List of Attached Documents: // Content	65,687	54,968	0
19	Depreciation (attach schedule) and depletion...		93,655	93,655
20	Occupancy..............
21	Travel, conferences, and meetings.......
22	Printing and publications..........
23	Other expenses (attach schedule).......	List of Attached Documents: // Content	34,011	34,011	0
24	Total operating and administrative expenses.
	Add lines 13 through 23..........	293,204		282,485	0
25	Contributions, gifts, grants paid.......	1,430,460			1,430,460
26	Total expenses and disbursements. Add lines 24 and 25	1,723,664		282,485	1,430,460
27	Subtract line 26 from line 12:
a	Excess of revenue over expenses and disbursements	-670,024
b	Net investment income (if negative, enter -0-)			771,155
c	Adjusted net income (if negative, enter -0-)...

For Paperwork Reduction Act Notice, see instructions.

Cat. No. 11289X Form 990-PF (2023)

Form 990-PF (2023)

Page 2

Part II		Balance Sheets	Beginning of year	End of year
Part II		Balance Sheets	(a) Book Value	(b) Book Value	(c) Fair Market Value
	1	Cash—non-interest-bearing.............
	2	Savings and temporary cash investments.........	1,723,855	451,153	451,153
	3	Accounts receivable 29,777
		Less: allowance for doubtful accounts	41,306	29,777	29,777
	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..........		4,441	4,441
	10a	Investments—U.S. and state government obligations (attach schedule)
	b	Investments—corporate stock (attach schedule).......
	c	Investments—corporate bonds (attach schedule).......	3,972,161	List of Attached Documents: // Content 5,056,933	4,922,087
	11	Investments—land, buildings, and equipment: basis
		Less: accumulated depreciation (attach schedule)
	12	Investments—mortgage loans.............
	13	Investments—other (attach schedule)..........	5,879,801	List of Attached Documents: // Content 5,494,116	6,660,455
	14	Land, buildings, and equipment: basis
		Less: accumulated depreciation (attach schedule)
	15	Other assets (describe )	List of Attached Documents: // Content 0	List of Attached Documents: // Content 0	List of Attached Documents: // Content 2,274,897
	16	Total assets (to be completed by all filers—see the
		instructions. Also, see page 1, item I)	11,617,123	11,036,420	14,342,810
	17	Accounts payable and accrued expenses..........	4,334
	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).........	4,334	0
		Foundations that follow FASB ASC 958, check here
		and complete lines 24, 25, 29 and 30.
	24	Net assets without donor restrictions...........	11,612,789	11,036,420
	25	Net assets with donor restrictions............
		Foundations that do not follow FASB ASC 958, check here
		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).....	11,612,789	11,036,420
	30	Total liabilities and net assets/fund balances (see instructions).	11,617,123	11,036,420

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 29 (must agree with end-of-year figure reported on prior year’s return) ...............

11,612,789

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

-670,024

Other increases not included in line 2 (itemize) right arrow

List of Attached Documents:

// Content

93,655

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

11,036,420

Decreases not included in line 2 (itemize) right arrow

Total net assets or fund balances at end of year (line 4 minus line 5)—Part II, column (b), line 29 .

11,036,420

Form 990-PF (2023)

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	(d) Date sold (mo., day, yr.)
1 a	PUBLICLY TRADED SECURITIES		2023-12-31
b	CAPITAL GAINS DIVIDENDS	P
c
d
e

(e) Gross sales price		(g) Cost or other basis plus expense of sale	(h) Gain or (loss) (e) plus (f) minus (g)
a	1,321,207	1,233,901	87,306
b	505		505
c
d
e

Complete only for assets showing gain in column (h) and owned by the foundation on 12/31/69			(l) Gains (Col. (h) gain minus col. (k), but not less than -0-) or Losses (from col.(h))
(i) F.M.V. as of 12/31/69	(j) Adjusted basis as of 12/31/69	(k) Excess of col. (i) over col. (j), if any
a			87,306
b			505
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	87,811
3	Net short-term capital gain or (loss) as defined in sections 1222(5) and (6):
	If gain, also enter in Part I, line 8, column (c) (see instructions). If (loss), enter -0- in Part I, line 8 ...................		3

Part V

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)	1	10,719
b	All other domestic foundations enter 1.39% (0.0139) of line 27b. Exempt foreign organizations enter 4% (0.04) 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	0
3	Add lines 1 and 2...........................	3	10,719
4	Subtitle A (income) tax (domestic section 4947(a)(1) trusts and taxable foundations only. Others enter -0-)	4	0
5	Tax based on investment income. Subtract line 4 from line 3. If zero or less, enter -0- .....	5	10,719
6	Credits/Payments:

a	2023 estimated tax payments and 2022 overpayment credited to 2023	6a	15,160
b	Exempt foreign organizations—tax withheld at source......	6b	0
c	Tax paid with application for extension of time to file (Form 8868)...	6c	0
d	Backup withholding erroneously withheld ..........	6d	0

7	Total credits and payments. Add lines 6a through 6d..............		7	15,160
8	Enter any penalty for underpayment of estimated tax. Check here if Form 2220 is attached.		8	0
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	4,441
11	Enter the amount of line 10 to be: Credited to 2024 estimated tax4,441	Refunded	11	0

Form 990-PF (2023)

Page 4

Part VI-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 the instructions

for the 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. right arrow

$ 0(2) On foundation managers. right arrow

$ 0

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

on foundation managers. right arrow

$ 0

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 XIV..................................

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 2023 or the taxable year beginning in 2023? See the instructions for Part XIII.

If "Yes," complete Part XIII .............................

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

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

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 right arrow

N/A

The books are in care of right arrow

JEFF CHEAVENS Telephone no. right arrow

(903) 579-8100

Located at right arrow

PO BOX 6100TYLERTX ZIP+4 right arrow

75711

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

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

16 At any time during calendar year 2023, 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 right arrow

Form 990-PF (2023)

Page 5

Part VI-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? ...........

1a(1)

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

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

1a(2)

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

1a(3)

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

1a(4)

Yes

(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)? ......................

1a(5)

(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.) ...............

1a(6)

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 ........ right arrow

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 2023? .............

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 2023, did the foundation have any undistributed income (Part XII, lines 6d

and 6e) for tax year(s) beginning before 2023?....................

If "Yes," list the years right arrow

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? ..............................

If "Yes," did it have excess business holdings in 2023 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 2023.) .....................

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 2023? ..

Form 990-PF (2023)

Page 6

Part VI-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))? ..........

5a(1)

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

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

5a(2)

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

5a(3)

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

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

5a(4)

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

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

5a(5)

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 ......... right arrow

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).

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

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

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?

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? .........................

Part VII

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	94,251	0	0
PO BOX 6100 TYLER,TX75711	TRUSTEE 2.00	94,251	0	0

2 Compensation of five highest-paid employees (other than those included on line 1—see instructions). If none, enter “NONE."


(a) Name and address of each employee paid more than $50,000	(b) Title, and average hours per week devoted to position	(c) Compensation	(d) Contributions to employee benefit plans and deferred compensation	(e) Expense account, other allowances
NONE









Total number of other employees paid over $50,000...................				0

Form 990-PF (2023)

Page 7

Part VII

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............. right arrow

Part VIII-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 VIII-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......................... right arrow

Form 990-PF (2023)

Page 8

Part IX

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

10,979,493

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

677,081

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

2,304,674

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

13,961,248

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

13,961,248

Cash deemed held for charitable activities. Enter 1.5% (0.015) of line 3 (for greater amount, see

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

209,419

Net value of noncharitable-use assets. Subtract line 4 from line 3. ............

13,751,829

Minimum investment return. Enter 5% (0.05) of line 5................

687,591

Part X

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.)

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

687,591

Tax on investment income for 2022 from Part V, line 5.......

10,719

Income tax for 2022. (This does not include the tax from Part V.) ...

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

10,719

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

676,872

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

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

676,872

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

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

676,872

Part XI

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 ..........

1,430,460

Program-related investments—total from Part VIII-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 XII, line 4. .......

1,430,460

Form 990-PF (2023)

Page 9

Part XII

Undistributed Income (see instructions)

	(a) Corpus	(b) Years prior to 2022	(c) 2022	(d) 2023
1 Distributable amount for 2023 from Part X, line 7				676,872
2 Undistributed income, if any, as of the end of 2022:
a Enter amount for 2022 only.......			751,302
b Total for prior years:2021, 20, 20		679,158
3 Excess distributions carryover, if any, to 2022:
a From 2018......
b From 2019......
c From 2020......
d From 2021......
e From 2022......
f Total of lines 3a through e ........	0
4Qualifying distributions for 2023 from Part
XI, line 4: $ 1,430,460
a Applied to 2022, but not more than line 2a			751,302
b Applied to undistributed income of prior years (Election required—see instructions).....		List of Attached Documents: // Content 679,158
c Treated as distributions out of corpus (Election required—see instructions)........	0
d Applied to 2023 distributable amount.....				0
e Remaining amount distributed out of corpus	0
5 Excess distributions carryover applied to 2023.	0			0
(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	0
b Prior years’ undistributed income. Subtract line 4b from line 2b ..........		0
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......		679,158
d Subtract line 6c from line 6b. Taxable amount —see instructions ...........		0
e Undistributed income for 2022. Subtract line 4a from line 2a. Taxable amount—see instructions .............			0
f Undistributed income for 2023. Subtract lines 4d and 5 from line 1. This amount must be distributed in 2024 ..........				676,872
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) .......	0
8 Excess distributions carryover from 2018 not applied on line 5 or line 7 (see instructions) ...	0
9 Excess distributions carryover to 2024. Subtract lines 7 and 8 from line 6a ......	0
10 Analysis of line 9:
a Excess from 2019....
b Excess from 2020....
c Excess from 2021....
d Excess from 2022....
e Excess from 2023....

Form 990-PF (2023)

Page 10

Part XIII

Private Operating Foundations (see instructions and Part VI-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 2023, enter the date of the ruling ...... right arrow

b Check box to indicate whether the organization is a private operating foundation described in section 4942(j)(3) or4942(j)(5)

2a Enter the lesser of the adjusted net income from Part I or the minimum investment return from Part IX for each year listed ..........	Tax year	Prior 3 years			(e) Total
	(a) 2023	(b) 2022	(c) 2021	(d) 2020	(e) Total

b 85% (0.85) of line 2a .........
c Qualifying distributions from Part XI, 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 IX, 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 XIV

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 right arrow

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 (2023)

Page 11

Part XIV

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
KILGORE COLLEGE 1100 BROADWAY KILGORE,TX75662	NONE	PC	SCHOLARSHIP FUND	257,483
STEPHEN F AUSTIN STATE UNIVERSITY PO BOX 13052 NACOGDOCHES,TX75962	NONE	PC	SCHOLARSHIP FUND	257,483
TULANE UNIVERSITY EDUCATIONAL FUND 1430 TULANE AVE STE 34 NEW ORLEANS,LA70112	NONE	PC	SCHOLARSHIP FUND	457,747
TYLER JR COLLEGE PO BOX 9020 TYLER,TX75711	NONE	PC	SCHOLARSHIP FUND	457,747
Total ................................. 3a				1,430,460

bApproved for future payment

Total ................................. 3b				0

Form 990-PF (2023)

Page 12

Part XV-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 ...........
4 Dividends and interest from securities ....			14	334,397
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	87,811
9 Net income or (loss) from special events:
10 Gross profit or (loss) from sales of inventory
11 Other revenue: aROYALTY INTEREST			15	631,432
b
c
d
e
12 Subtotal. Add columns (b), (d), and (e) ..		0		1,053,640	0

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

1,053,640

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

Part XV-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 XV-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 (2023)

Page 13

Part XVI

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 instructions. 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 (2023)

Additional Data

Software ID:
Software Version:

Form 990PF - Special Condition Description:

Special Condition Description

- TIN:

TY 2023 AccountingFeesSchedule

Name:

DR AND MRS JE WATKINS SCHOLARSHIP TRUST

EIN:

75-1901814

Category	Amount	Net Investment Income	Adjusted Net Income	Disbursements for Charitable Purposes
ACCOUNTING FEES	5,600	5,600		0

- TIN:

TY 2023 AppliedToPriorYearElection

Name:

DR AND MRS JE WATKINS SCHOLARSHIP TRUST

EIN:

75-1901814

Election:

SECTION 4942(H)(2) ELECTIONAS TO THE TREATMENT OF QUALIFYING DISTRIBUTIONSPURSUANT TO IRC SEC. 4942(H)(2) AND REG. 53.4942(A)-3(D)(2), THE ABOVE REFERENCED FOUNDATION HEREBY ELECTS TO TREAT CURRENT YEAR QUALIFYING DISTRIBUTIONS IN EXCESS OF THE IMMEDIATELY PRECEDING TAX YEAR'S UNDISTRIBUTED INCOME AS BEING MADE OUT OF UNDISTRIBUTED INCOME FROM TAX YEAR ENDING 2021 $679,158

- TIN:

TY 2023 InvestmentsCorpBondsSchedule

Name:

DR AND MRS JE WATKINS SCHOLARSHIP TRUST

EIN:

75-1901814

Name of Bond	End of Year Book Value	End of Year Fair Market Value
3M COMPANY 2.25%	103,522	93,553
ALTRIA GROUP INC 2.35%	101,825	96,456
AMGEN INC 2.2%	102,285	93,046
AUTOMATIC DATA PROCESSING 3.375%	102,629	97,999
BARCLAYS BANK PLC 1.3%	100,000	87,748
CATERPILLAR FINL SVCS MTNS BE 3.3%	101,973	99,024
COLGATE PALMOLIVE CO MTNS BE 3.25%	102,162	99,596
CONOCO PHILLIPS CO 3.35%	51,324	48,756
FIFTH THIRD BK CINCINNATI 2.25%	102,952	92,429
IBM CORP 1.7%	101,158	91,390
JOHNSON & JOHNSON 2.45%	98,444	96,207
MANUFACTURER & TRADERS TRUST CO 2.9%	99,781	96,919
SOUTHERN CALIF GAS CO 2.6%	103,358	95,428
US BANCORP MTNS BK ENT 3.6%	99,551	98,756
WACO TX EDL 1.686%	50,626	44,573
WELLS FARGO & CO SER T MTN 1.4%	50,000	39,753
BK OF AMERICA CORP FR 4.00%	99,494	99,611
DEER JOHN CAPITAL CORP FR 3.4%	99,859	98,326
JPMORGAN CHASE & CO SR NT 3.90%	97,606	98,450
MORGAN STANLEY FR 3.125%	97,369	95,786
JPMORGAN CHASE & CO FR 4.5%	100,397	96,991
BK OF AMERICA CORP FR 4.4%	100,000	96,277
INTERNATIONAL BUSINESS MACHS SR GLBL	207,306	208,250
EOG RES INC SR GLBL NT 26	100,861	99,093
PHILLIP MORRIS INTL INC SR GLBL NT 5%	100,820	100,402
AMAZON COM INC SR GLBL NT 2.8%	98,714	98,450
PUBLIC SVC ELEC & GAS CO FR 3.7%	98,646	96,924
DUKE ENERGY PROGRESS INC 1M GLBL BD 3.7%	98,549	97,180
COMCAST CORP NEW GLBL NT 5.35	204,733	206,879
WALT DISNEY CO DIS 2.200	103,339	92,587
SOUTH TEXAS CMNTY COLLEGE DIST	100,261	100,087
PFLUGERVILLE TEX TAXABLE LTD 5.00%	101,805	102,758
TEXAS TRANSN COMMN TAXABLE MOBILITY	93,774	86,265
GEARY CNTY KANS UNI SCH DIST N 3.561%	100,822	98,338
INTEL CORP SR GLBL NT 3.4%	99,957	98,306
LAUDER ESTEE COS INC SR GLBL NT 28	100,281	99,766
CATERPILLAR FINL SVCS MTNS BE FR 4.35%	100,212	99,820
MORGAN STANLEY FR 6.25%	207,231	206,332
JOHN DEERE CAPITAL CORPORATION FR 4.15%	100,079	99,411
CONOCOPHILLIPS SR GLBL NT 27	99,121	96,512
SOUTHERN CALF EDISON CO 1M GLBL 2022D 27	100,839	100,658
META PLATFORMS INC GLBL NT 3.5%	95,085	97,458
ECOLAB INC SR GLBL NT 28	101,163	103,283
ISHARES TR TIPS BD ETF	327,020	322,470
EATON VANCE FLOATING-RATE ADVANTAGE FUND CL I	250,000	253,784

- TIN:

TY 2023 InvestmentsOtherSchedule2

Name:

DR AND MRS JE WATKINS SCHOLARSHIP TRUST

EIN:

75-1901814

Category/ Item	Listed at Cost or FMV	Book Value	End of Year Fair Market Value
ABBOTT LABS COM	AT COST	18,776	22,014
ABBVIE INC	AT COST	9,952	15,497
ACCENTURE PLC	AT COST	63,521	140,364
ALPHABET INC CL A	AT COST	42,855	83,814
AMAZON	AT COST	44,340	53,939
AMERICAN CENTURY SMALL CAP VALUE	AT COST	114,457	109,029
AMERICAN EXPRESS CO	AT COST	32,043	47,772
AMERICAN TOWER CORP REIT	AT COST	30,641	24,826
APPLE INC	AT COST	18,999	77,012
APPLIED MATERIALS INC	AT COST	48,341	145,863
ASTRAZENECA PLC	AT COST	18,378	21,417
AT&T	AT COST	28,836	16,780
BERKSHIRE HATHAWAY INC CL B NEW	AT COST	38,992	62,416
BRANDES EMERGING MKTS	AT COST	682,947	601,323
BRANDES INT'L EQUITY FD	AT COST	792,755	877,935
BUFFALO INT'L FUND	AT COST	536,250	655,386
CHEVRON CORPORATION	AT COST	34,111	44,748
CHIPOTLE MEXICAN GRILL INC	AT COST	20,397	41,165
CISCO SYSTEMS INC	AT COST	19,947	25,260
COLGATE PALMOLIVE CO COM	AT COST	36,980	42,246
COMCAST CORP NEW CL A	AT COST	31,429	39,465
CONOCO PHILLIPS	AT COST	23,568	46,428
CUMMINS INC	AT COST	24,094	35,936
CVS HEALTH CORPORATION	AT COST	61,580	63,168
DIGITAL REALTY TRUST INC REIT	AT COST	26,986	30,953
DISNEY WALT COMPANY	AT COST	43,994	36,116
DOMINION ENERGY INC	AT COST	18,195	11,280
ECOLAB INC	AT COST	44,413	62,480
ELI LILLY COMPANY	AT COST	8,150	58,292
EMERSON ELECTRIC COMPANY	AT COST	14,301	19,466
EXELON CORPORATION	AT COST	15,309	16,514
EXXON MOBIL CORP	AT COST	43,455	49,990
FEDERATED HERMES KAUFMANN SM C	AT COST	95,108	91,580
FEDEX CORPORATION	AT COST	11,548	12,649
FORTIVE CORP	AT COST	19,121	22,089
GENERAL DYNAMICS CORP	AT COST	23,512	36,354
HONEYWELL INT'L INC	AT COST	13,912	20,971
INTEL CORP	AT COST	27,015	30,150
INTERCONTINENTAL EXCHANGE	AT COST	38,059	64,215
JANUS HENDERSON GLOBAL R/E CL N 1431	AT COST	482,974	474,272
JP MORGAN CHASE & CO	AT COST	54,762	85,050
JP MORGAN MID CAP GWTH SELECT	AT COST	170,140	214,662
KLA CORPORATION	AT COST	24,765	130,793
LOWES COMPANIES INC	AT COST	20,323	44,510
MARSH & MCLENNAN	AT COST	22,510	38,841
MASCO CORPORATION	AT COST	12,255	20,094
MASTERCARD INC	AT COST	50,385	127,953
MCDONALDS CORP COM	AT COST	26,798	44,477
MEDTRONIC PLC	AT COST	29,682	24,714
MERCK & CO INC NEW COM	AT COST	5,408	10,902
MONDELEZ INTL INC COM	AT COST	30,996	44,544
NIKE INC CL B	AT COST	22,509	32,571
NORFOLK SOUTHERN CORP	AT COST	14,816	18,910
ORACLE CORP	AT COST	23,906	52,715
PALO ALTO NETWORKS, INC	AT COST	10,650	44,232
PAYPAL HLDGS INC	AT COST	15,399	12,282
PFIZER	AT COST	57,336	43,185
PROCTOR & GAMBLE	AT COST	8,101	14,654
QUALCOMM INC	AT COST	6,564	14,463
SALESFORCE.COM INC	AT COST	14,463	26,314
SPDR GOLD TR ETF	AT COST	233,553	257,697
TAPESTRY INC	AT COST	9,262	22,086
TARGET CORP	AT COST	17,477	21,363
TEXAS INSTRUMENTS INC	AT COST	10,849	17,046
THE COCA-COLA COMPANY	AT COST	33,529	38,305
UNITED HEALTH GROUP INC	AT COST	15,517	26,324
UNITED PARCEL SERVICE	AT COST	10,643	15,723
YUM BRANDS INC	AT COST	24,965	39,198
VERIZON COMMUNICATIONS INC COM	AT COST	30,912	30,160
BLACKSTONE GROUP INC CL A	AT COST	11,803	18,329
MCKESSON CORP COM	AT COST	17,047	23,149
SIMON PROPERTY GROUP INC REIT	AT COST	22,350	35,660
AMERICAN WATER WORKS	AT COST	17,388	17,159
VANGUARD SMALL CAP VALUE INDEX FUND	AT COST	37,599	39,593
GSK PLC SPONSORED ADR	AT COST	12,579	11,859
JOHNSON CTLS INTL PLC	AT COST	41,222	59,369
LINDE PLC	AT COST	26,818	41,071
VANG EXTENDED MKT INDEX ADM SH #598	AT COST	146,381	203,078
PIMCO COMMODDITY REAL RTRN STRATEGY FUND CLASS INSTL #45	AT COST	305,900	183,616
COSTCO WHOLESALE CORP NEW	AT COST	40,335	52,806
SYSCO CORPORATION	AT COST	38,981	36,565
BANK OF AMERICA CORP	AT COST	38,618	38,721
CENCORA INC	AT COST	18,871	41,076
RTX CORPORATION	AT COST	9,508	13,462

- TIN:

TY 2023 OtherAssetsSchedule

Name:

DR AND MRS JE WATKINS SCHOLARSHIP TRUST

EIN:

75-1901814

Description	Beginning of Year - Book Value	End of Year - Book Value	End of Year - Fair Market Value
MINERAL INTEREST			2,274,897

- TIN:

TY 2023 OtherExpensesSchedule

Name:

DR AND MRS JE WATKINS SCHOLARSHIP TRUST

EIN:

75-1901814

Description	Revenue and Expenses per Books	Net Investment Income	Adjusted Net Income	Disbursements for Charitable Purposes
ROYALTY EXPENSE	33,974	33,974		0
MISCELLANEOUS EXPENSE	37	37		0

- TIN:

TY 2023 OtherIncomeSchedule2

Name:

DR AND MRS JE WATKINS SCHOLARSHIP TRUST

EIN:

75-1901814

Description	Revenue And Expenses Per Books	Net Investment Income	Adjusted Net Income
ROYALTY INTEREST	631,432	631,432	631,432

- TIN:

TY 2023 OtherIncreasesSchedule

Name:

DR AND MRS JE WATKINS SCHOLARSHIP TRUST

EIN:

75-1901814

Description	Amount
DEPLETION IN EXCESS OF BASIS	93,655

- TIN:

TY 2023 TaxesSchedule

Name:

DR AND MRS JE WATKINS SCHOLARSHIP TRUST

EIN:

75-1901814

Category	Amount	Net Investment Income
PROPERTY TAXES	10,375	10,375
GROSS PRODUCTION TAX	37,689	37,689
FOREIGN TAX PAID	6,904	6,904
EXCISE TAX	10,719	0