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      <SignatureDt>2017-08-14</SignatureDt>
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          <HowAcquiredCd>P</HowAcquiredCd>
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        <WebsiteAddressTxt>NA</WebsiteAddressTxt>
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        <Taxable2Amt>0</Taxable2Amt>
        <UndistributedIncomeCYAmt>0</UndistributedIncomeCYAmt>
        <CorpusDistri170b1EOr4942g3Amt>0</CorpusDistri170b1EOr4942g3Amt>
        <ExcessDistriCyovFromYr5Amt>25802</ExcessDistriCyovFromYr5Amt>
        <ExcessDistriCyovToNextYrAmt>925934</ExcessDistriCyovToNextYrAmt>
        <ExcessFromYear4Amt>16537</ExcessFromYear4Amt>
        <ExcessFromYear3Amt>58704</ExcessFromYear3Amt>
        <ExcessFromYear2Amt>110987</ExcessFromYear2Amt>
        <ExcessFromYear1Amt>146277</ExcessFromYear1Amt>
        <ExcessFromCurrentYearAmt>593429</ExcessFromCurrentYearAmt>
      </UndistributedIncomeGrp>
      <SupplementaryInformationGrp>
        <ApplicationSubmissionInfoGrp>
          <RecipientPersonNm>RONNA L SCHREINER</RecipientPersonNm>
          <RecipientUSAddress>
            <AddressLine1Txt>9916 Peacock Hill Ave NW</AddressLine1Txt>
            <CityNm>GIG HARBOR</CityNm>
            <StateAbbreviationCd>WA</StateAbbreviationCd>
            <ZIPCd>98332</ZIPCd>
          </RecipientUSAddress>
          <RecipientPhoneNum>2534324500</RecipientPhoneNum>
          <FormAndInfoAndMaterialsTxt>GRINDSTONE FOUNDATION GRANT APPLICATION.</FormAndInfoAndMaterialsTxt>
          <SubmissionDeadlinesTxt>APRIL 30TH IS THE DEADLINE FOR JUNE GRANTS AND SEPTEMBER 30 IS THE DEADLINE FOR NOVEMBER GRANTS.</SubmissionDeadlinesTxt>
          <RestrictionsOnAwardsTxt>ALL APPLICANTS SEEKING GRANTS FROM GRINDSTONE FOUNDATION MUST STRICTLY COMPLY WITH EACH OF THE CRITERIA AND REQUIREMENTS ATTACHED TO THIS TAX RETURN.</RestrictionsOnAwardsTxt>
        </ApplicationSubmissionInfoGrp>
        <GrantOrContributionPdDurYrGrp>
          <RecipientBusinessName>
            <BusinessNameLine1Txt>CATALINA ISLAND MUSEUM</BusinessNameLine1Txt>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1Txt>PO BOX 366</AddressLine1Txt>
            <CityNm>AVALON</CityNm>
            <StateAbbreviationCd>CA</StateAbbreviationCd>
            <ZIPCd>90704</ZIPCd>
          </RecipientUSAddress>
          <RecipientRelationshipTxt>none</RecipientRelationshipTxt>
          <RecipientFoundationStatusTxt>NOT-FOR-PROFIT MUSEU</RecipientFoundationStatusTxt>
          <GrantOrContributionPurposeTxt>Capital Campaign to construct new catalina Island museum.</GrantOrContributionPurposeTxt>
          <Amt>100000</Amt>
        </GrantOrContributionPdDurYrGrp>
        <GrantOrContributionPdDurYrGrp>
          <RecipientBusinessName>
            <BusinessNameLine1Txt>Muscular dystrophy association</BusinessNameLine1Txt>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1Txt>222 s riverside plaza suite 1500</AddressLine1Txt>
            <CityNm>chicago</CityNm>
            <StateAbbreviationCd>IL</StateAbbreviationCd>
            <ZIPCd>60606</ZIPCd>
          </RecipientUSAddress>
          <RecipientRelationshipTxt>none</RecipientRelationshipTxt>
          <GrantOrContributionPurposeTxt>To help underwrite cost of 2016 summer camp</GrantOrContributionPurposeTxt>
          <Amt>10000</Amt>
        </GrantOrContributionPdDurYrGrp>
        <GrantOrContributionPdDurYrGrp>
          <RecipientBusinessName>
            <BusinessNameLine1Txt>permission to start dreaming foundation</BusinessNameLine1Txt>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1Txt>3110 judson st pmb 1441</AddressLine1Txt>
            <CityNm>gig harbor</CityNm>
            <StateAbbreviationCd>WA</StateAbbreviationCd>
            <ZIPCd>98335</ZIPCd>
          </RecipientUSAddress>
          <RecipientRelationshipTxt>none</RecipientRelationshipTxt>
          <GrantOrContributionPurposeTxt>General fund</GrantOrContributionPurposeTxt>
          <Amt>50000</Amt>
        </GrantOrContributionPdDurYrGrp>
        <GrantOrContributionPdDurYrGrp>
          <RecipientBusinessName>
            <BusinessNameLine1Txt>Harbor Soccer club</BusinessNameLine1Txt>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1Txt>po box 1123</AddressLine1Txt>
            <CityNm>gig harbor</CityNm>
            <StateAbbreviationCd>WA</StateAbbreviationCd>
            <ZIPCd>98335</ZIPCd>
          </RecipientUSAddress>
          <RecipientRelationshipTxt>none</RecipientRelationshipTxt>
          <GrantOrContributionPurposeTxt>general fund</GrantOrContributionPurposeTxt>
          <Amt>100000</Amt>
        </GrantOrContributionPdDurYrGrp>
        <GrantOrContributionPdDurYrGrp>
          <RecipientBusinessName>
            <BusinessNameLine1Txt>harbor wildwatch</BusinessNameLine1Txt>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1Txt>3207 harborview dr</AddressLine1Txt>
            <CityNm>gig harbor</CityNm>
            <StateAbbreviationCd>WA</StateAbbreviationCd>
            <ZIPCd>98335</ZIPCd>
          </RecipientUSAddress>
          <RecipientRelationshipTxt>none</RecipientRelationshipTxt>
          <GrantOrContributionPurposeTxt>development of educational activities at skansie house location</GrantOrContributionPurposeTxt>
          <Amt>50000</Amt>
        </GrantOrContributionPdDurYrGrp>
        <GrantOrContributionPdDurYrGrp>
          <RecipientBusinessName>
            <BusinessNameLine1Txt>Lighthouse Christian school</BusinessNameLine1Txt>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1Txt>3008 36th ST NW</AddressLine1Txt>
            <CityNm>gig harbor</CityNm>
            <StateAbbreviationCd>WA</StateAbbreviationCd>
            <ZIPCd>98335</ZIPCd>
          </RecipientUSAddress>
          <GrantOrContributionPurposeTxt>upgrade phone/bell/clock systems.</GrantOrContributionPurposeTxt>
          <Amt>25000</Amt>
        </GrantOrContributionPdDurYrGrp>
        <GrantOrContributionPdDurYrGrp>
          <RecipientBusinessName>
            <BusinessNameLine1Txt>Gig Harbor Peninsula Fish</BusinessNameLine1Txt>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1Txt>4425 Burnham Drive</AddressLine1Txt>
            <CityNm>gig harbor</CityNm>
            <StateAbbreviationCd>WA</StateAbbreviationCd>
            <ZIPCd>98332</ZIPCd>
          </RecipientUSAddress>
          <RecipientRelationshipTxt>none</RecipientRelationshipTxt>
          <RecipientFoundationStatusTxt>noT-FOR-PROFIT</RecipientFoundationStatusTxt>
          <GrantOrContributionPurposeTxt>operations</GrantOrContributionPurposeTxt>
          <Amt>60000</Amt>
        </GrantOrContributionPdDurYrGrp>
        <GrantOrContributionPdDurYrGrp>
          <RecipientBusinessName>
            <BusinessNameLine1Txt>ST CHARLES BORROMEO CATHOLIC SCHOOL</BusinessNameLine1Txt>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1Txt>7112 SOUTH 12TH STREET</AddressLine1Txt>
            <CityNm>TACOMA</CityNm>
            <StateAbbreviationCd>WA</StateAbbreviationCd>
            <ZIPCd>98467</ZIPCd>
          </RecipientUSAddress>
          <RecipientRelationshipTxt>none</RecipientRelationshipTxt>
          <RecipientFoundationStatusTxt>not for profit schoo</RecipientFoundationStatusTxt>
          <GrantOrContributionPurposeTxt>PA system for safety</GrantOrContributionPurposeTxt>
          <Amt>50000</Amt>
        </GrantOrContributionPdDurYrGrp>
        <GrantOrContributionPdDurYrGrp>
          <RecipientBusinessName>
            <BusinessNameLine1Txt>gig harbor downtown waterfront alliance</BusinessNameLine1Txt>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1Txt>3311 harborview dr ste 101</AddressLine1Txt>
            <CityNm>gig harbor</CityNm>
            <StateAbbreviationCd>WA</StateAbbreviationCd>
            <ZIPCd>98332</ZIPCd>
          </RecipientUSAddress>
          <RecipientRelationshipTxt>none</RecipientRelationshipTxt>
          <GrantOrContributionPurposeTxt>general fund</GrantOrContributionPurposeTxt>
          <Amt>50000</Amt>
        </GrantOrContributionPdDurYrGrp>
        <GrantOrContributionPdDurYrGrp>
          <RecipientBusinessName>
            <BusinessNameLine1Txt>Visitation Catholic School</BusinessNameLine1Txt>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1Txt>3306 S 58th St</AddressLine1Txt>
            <CityNm>taCOMA</CityNm>
            <StateAbbreviationCd>WA</StateAbbreviationCd>
            <ZIPCd>98409</ZIPCd>
          </RecipientUSAddress>
          <RecipientRelationshipTxt>none</RecipientRelationshipTxt>
          <RecipientFoundationStatusTxt>non profit school</RecipientFoundationStatusTxt>
          <GrantOrContributionPurposeTxt>General Fund</GrantOrContributionPurposeTxt>
          <Amt>75000</Amt>
        </GrantOrContributionPdDurYrGrp>
        <GrantOrContributionPdDurYrGrp>
          <RecipientBusinessName>
            <BusinessNameLine1Txt>our school dba Gig Harbor Academy</BusinessNameLine1Txt>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1Txt>6820 32nd St NW</AddressLine1Txt>
            <CityNm>Gig harbor</CityNm>
            <StateAbbreviationCd>WA</StateAbbreviationCd>
            <ZIPCd>98335</ZIPCd>
          </RecipientUSAddress>
          <RecipientRelationshipTxt>none</RecipientRelationshipTxt>
          <RecipientFoundationStatusTxt>non profit school</RecipientFoundationStatusTxt>
          <GrantOrContributionPurposeTxt>General Fund</GrantOrContributionPurposeTxt>
          <Amt>100000</Amt>
        </GrantOrContributionPdDurYrGrp>
        <GrantOrContributionPdDurYrGrp>
          <RecipientBusinessName>
            <BusinessNameLine1Txt>Tacoma Athletic Commission</BusinessNameLine1Txt>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1Txt>po box 11304</AddressLine1Txt>
            <CityNm>tACOMA</CityNm>
            <StateAbbreviationCd>WA</StateAbbreviationCd>
            <ZIPCd>98411</ZIPCd>
          </RecipientUSAddress>
          <RecipientRelationshipTxt>none</RecipientRelationshipTxt>
          <RecipientFoundationStatusTxt>non profit</RecipientFoundationStatusTxt>
          <GrantOrContributionPurposeTxt>defibillators, tacoma elementary school</GrantOrContributionPurposeTxt>
          <Amt>25000</Amt>
        </GrantOrContributionPdDurYrGrp>
        <GrantOrContributionPdDurYrGrp>
          <RecipientBusinessName>
            <BusinessNameLine1Txt>friends of american lake veterans golf course</BusinessNameLine1Txt>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1Txt>9600 veterans drive sw</AddressLine1Txt>
            <CityNm>lakewood</CityNm>
            <StateAbbreviationCd>WA</StateAbbreviationCd>
            <ZIPCd>98498</ZIPCd>
          </RecipientUSAddress>
          <RecipientRelationshipTxt>none</RecipientRelationshipTxt>
          <RecipientFoundationStatusTxt>non profit</RecipientFoundationStatusTxt>
          <GrantOrContributionPurposeTxt>bathrooms for veterans golf course</GrantOrContributionPurposeTxt>
          <Amt>25000</Amt>
        </GrantOrContributionPdDurYrGrp>
        <TotalGrantOrContriPdDurYrAmt>720000</TotalGrantOrContriPdDurYrAmt>
        <TotalGrantOrContriApprvFutAmt>0</TotalGrantOrContriApprvFutAmt>
      </SupplementaryInformationGrp>
      <AnalysisIncomeProducingActyGrp>
        <DivAndIntFromSecPartVIIGrp>
          <RelatedOrExemptFunctionIncmAmt>124970</RelatedOrExemptFunctionIncmAmt>
        </DivAndIntFromSecPartVIIGrp>
        <OtherInvestmentIncmPartVIIGrp>
          <RelatedOrExemptFunctionIncmAmt>4423</RelatedOrExemptFunctionIncmAmt>
        </OtherInvestmentIncmPartVIIGrp>
        <GainSalesAstOthThanInvntryGrp>
          <RelatedOrExemptFunctionIncmAmt>37946</RelatedOrExemptFunctionIncmAmt>
        </GainSalesAstOthThanInvntryGrp>
        <SubtotalsIncmProducingActyGrp>
          <UnrelatedBusinessTaxblIncmAmt>0</UnrelatedBusinessTaxblIncmAmt>
          <ExclusionAmt>0</ExclusionAmt>
          <RelatedOrExemptFunctionIncmAmt>167339</RelatedOrExemptFunctionIncmAmt>
        </SubtotalsIncmProducingActyGrp>
        <TotalIncomeProducingActyAmt>167339</TotalIncomeProducingActyAmt>
      </AnalysisIncomeProducingActyGrp>
      <RlnOfActyToAccomOfExmptPrpsGrp>
        <RlnOfActyToAccomOfExmptPrpsGrp>
          <LineNumberTxt>4</LineNumberTxt>
          <RelationshipStatementTxt>conservation of capital assets to support the foundations goals and objectives</RelationshipStatementTxt>
        </RlnOfActyToAccomOfExmptPrpsGrp>
      </RlnOfActyToAccomOfExmptPrpsGrp>
      <TrnsfrTransRlnNonchrtblEOGrp>
        <TrnsfrOfCashToNonchrtblEOInd>0</TrnsfrOfCashToNonchrtblEOInd>
        <TrnsfrOtherAssetNonchrtblEOInd>0</TrnsfrOtherAssetNonchrtblEOInd>
        <SalesOrExchangesOfAssetsInd>0</SalesOrExchangesOfAssetsInd>
        <PurchaseOfAssetsNonchrtblEOInd>0</PurchaseOfAssetsNonchrtblEOInd>
        <RentalOfFacilitiesOthAssetsInd>0</RentalOfFacilitiesOthAssetsInd>
        <ReimbursementArrangementsInd>0</ReimbursementArrangementsInd>
        <LoansOrLoanGuaranteesInd>0</LoansOrLoanGuaranteesInd>
        <PerformanceOfServicesEtcInd>0</PerformanceOfServicesEtcInd>
        <SharingOfFacilitiesEtcInd>0</SharingOfFacilitiesEtcInd>
        <RelationshipsNonchrtblEOInd>0</RelationshipsNonchrtblEOInd>
      </TrnsfrTransRlnNonchrtblEOGrp>
    </IRS990PF>
    <AccountingFeesSchedule documentId="RetDoc2002200001">
      <AccountingFeesDetail>
        <CategoryTxt>Accounting fees</CategoryTxt>
        <Amt>9763</Amt>
        <NetInvestmentIncomeAmt>0</NetInvestmentIncomeAmt>
        <DisbursementsCharitablePrpsAmt>9763</DisbursementsCharitablePrpsAmt>
      </AccountingFeesDetail>
    </AccountingFeesSchedule>
    <GainLossSaleOtherAssetsSch documentId="RetDoc2213400001">
      <GainLossSaleOtherAssetGrp>
        <AssetDesc>investments</AssetDesc>
        <HowAcquiredTxt>Purchased</HowAcquiredTxt>
        <GrossSalesPriceAmt>177798</GrossSalesPriceAmt>
        <BasisAmt>178868</BasisAmt>
        <SalesExpenseAmt>0</SalesExpenseAmt>
        <TotalNetAmt>-1070</TotalNetAmt>
      </GainLossSaleOtherAssetGrp>
      <GainLossSaleOtherAssetGrp>
        <AssetDesc>investments</AssetDesc>
        <HowAcquiredTxt>Purchased</HowAcquiredTxt>
        <GrossSalesPriceAmt>2978741</GrossSalesPriceAmt>
        <BasisAmt>2942426</BasisAmt>
        <SalesExpenseAmt>0</SalesExpenseAmt>
        <TotalNetAmt>36315</TotalNetAmt>
      </GainLossSaleOtherAssetGrp>
    </GainLossSaleOtherAssetsSch>
    <OtherExpensesSchedule documentId="RetDoc2003200001">
      <OtherExpensesScheduleGrp>
        <Desc>Miscellaneous</Desc>
        <RevenueAndExpensesPerBooksAmt>9449</RevenueAndExpensesPerBooksAmt>
        <NetInvestmentIncomeAmt>0</NetInvestmentIncomeAmt>
        <DisbursementsCharitablePrpsAmt>9449</DisbursementsCharitablePrpsAmt>
      </OtherExpensesScheduleGrp>
      <OtherExpensesScheduleGrp>
        <Desc>registration fees</Desc>
        <RevenueAndExpensesPerBooksAmt>89</RevenueAndExpensesPerBooksAmt>
        <NetInvestmentIncomeAmt>0</NetInvestmentIncomeAmt>
        <DisbursementsCharitablePrpsAmt>89</DisbursementsCharitablePrpsAmt>
      </OtherExpensesScheduleGrp>
    </OtherExpensesSchedule>
    <OtherIncomeSchedule2 documentId="RetDoc2001500001">
      <OtherIncomeDetail>
        <Desc>NON DIVIDEND DISTRIBUTIONS</Desc>
        <RevenueAndExpensesPerBooksAmt>4320</RevenueAndExpensesPerBooksAmt>
        <NetInvestmentIncomeAmt>4320</NetInvestmentIncomeAmt>
        <AdjustedNetIncomeAmt>4320</AdjustedNetIncomeAmt>
      </OtherIncomeDetail>
      <OtherIncomeDetail>
        <Desc>miscellaneous</Desc>
        <RevenueAndExpensesPerBooksAmt>103</RevenueAndExpensesPerBooksAmt>
        <NetInvestmentIncomeAmt>103</NetInvestmentIncomeAmt>
        <AdjustedNetIncomeAmt>103</AdjustedNetIncomeAmt>
      </OtherIncomeDetail>
    </OtherIncomeSchedule2>
    <OtherProfessionalFeesSchedule documentId="RetDoc2002300001">
      <OtherProfessionalFeesDetail>
        <CategoryTxt>INVESTMENTS FEES</CategoryTxt>
        <Amt>21792</Amt>
        <NetInvestmentIncomeAmt>21792</NetInvestmentIncomeAmt>
        <DisbursementsCharitablePrpsAmt>0</DisbursementsCharitablePrpsAmt>
      </OtherProfessionalFeesDetail>
    </OtherProfessionalFeesSchedule>
    <TaxesSchedule documentId="RetDoc2002500001">
      <TaxesDetail>
        <CategoryTxt>FOREIGN TAXES</CategoryTxt>
        <Amt>2491</Amt>
        <NetInvestmentIncomeAmt>2491</NetInvestmentIncomeAmt>
        <DisbursementsCharitablePrpsAmt>0</DisbursementsCharitablePrpsAmt>
      </TaxesDetail>
      <TaxesDetail>
        <CategoryTxt>PAYROLL TAXES</CategoryTxt>
        <Amt>5967</Amt>
        <NetInvestmentIncomeAmt>0</NetInvestmentIncomeAmt>
        <DisbursementsCharitablePrpsAmt>5967</DisbursementsCharitablePrpsAmt>
      </TaxesDetail>
      <TaxesDetail>
        <CategoryTxt>excise tax</CategoryTxt>
        <Amt>2114</Amt>
        <NetInvestmentIncomeAmt>0</NetInvestmentIncomeAmt>
        <DisbursementsCharitablePrpsAmt>2114</DisbursementsCharitablePrpsAmt>
      </TaxesDetail>
    </TaxesSchedule>
  </ReturnData>
</Return>