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        <Identifier>EXPLANATION OF LOBBYING ACTIVITIES:</Identifier>
        <ReturnReference>PART II-B, LINE 1:</ReturnReference>
        <Explanation>THE ORGANIZATION WORKED WITH THE NORTH CAROLINA GENERAL ASSEMBLY TO SECURE FUNDING FOR ADOPTION AND OTHER PERMANENCY PROGRAMS. LOBBYING EXPENSES: $300 LOBBYING REGISTRATION FEE $1,355 TRAVEL $4,536 ALLOCATED COMPENSATION</Explanation>
      </Form990ScheduleCPartIV>
    </IRS990ScheduleC>
    <IRS990ScheduleD documentId="RetDoc1040000001">
      <Land>
        <OtherCostOrOtherBasis>2189081</OtherCostOrOtherBasis>
        <BookValue>2189081</BookValue>
      </Land>
      <Buildings>
        <OtherCostOrOtherBasis>4870917</OtherCostOrOtherBasis>
        <Depreciation>2339678</Depreciation>
        <BookValue>2531239</BookValue>
      </Buildings>
      <Equipment>
        <OtherCostOrOtherBasis>2808032</OtherCostOrOtherBasis>
        <Depreciation>1353940</Depreciation>
        <BookValue>1454092</BookValue>
      </Equipment>
      <OtherLandBuildings>
        <OtherCostOrOtherBasis>65945</OtherCostOrOtherBasis>
        <BookValue>65945</BookValue>
      </OtherLandBuildings>
      <TotalOfBookValueLandBuildings>6240357</TotalOfBookValueLandBuildings>
      <FootnoteInPartXIII>X</FootnoteInPartXIII>
      <Form990ScheduleDPartXIII>
        <Identifier>DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48:</Identifier>
        <ReturnReference>PART X, LINE 2:</ReturnReference>
        <Explanation>THE SOCIETY AND THE FOUNDATION ARE EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. ACCORDINGLY, THE ACCOMPANYING FINANCIAL STATEMENTS DO NOT REFLECT A PROVISION OR LIABILITY FOR FEDERAL AND STATE INCOME TAXES. THE ORGANIZATION HAS DETERMINED THAT IT DOES NOT HAVE ANY MATERIAL UNRECOGNIZED TAX OBLIGATIONS AS OF JUNE 30, 2012. FISCAL YEARS ENDING ON OR AFTER 2009 REMAIN SUBJECT TO EXAMINATION BY FEDERAL AND STATE TAX AUTHORITIES.</Explanation>
      </Form990ScheduleDPartXIII>
    </IRS990ScheduleD>
    <IRS990ScheduleG documentId="RetDoc1041300001">
      <EventsInformation>
        <NameOfEvent1>BEACH MUSIC CONCERT SERIES GREENSBO</NameOfEvent1>
        <GrossReceiptsEvent1>208297</GrossReceiptsEvent1>
        <CharitableContributionsEvent1>47500</CharitableContributionsEvent1>
        <GrossRevenueEvent1>160797</GrossRevenueEvent1>
        <RentFacilityCostsEvent1>4457</RentFacilityCostsEvent1>
        <FoodAndBeverageEvent1>38278</FoodAndBeverageEvent1>
        <EntertainmentEvent1>19750</EntertainmentEvent1>
        <OtherDirectExpensesEvent1>32484</OtherDirectExpensesEvent1>
        <NameOfEvent2>BEACH MUSIC CONCERT SERIES HIGH POI</NameOfEvent2>
        <GrossReceiptsEvent2>82522</GrossReceiptsEvent2>
        <CharitableContributionsEvent2>29900</CharitableContributionsEvent2>
        <GrossRevenueEvent2>52622</GrossRevenueEvent2>
        <FoodAndBeverageEvent2>14739</FoodAndBeverageEvent2>
        <EntertainmentEvent2>12700</EntertainmentEvent2>
        <OtherDirectExpensesEvent2>10974</OtherDirectExpensesEvent2>
        <TotalNumberOfOtherEvents>4</TotalNumberOfOtherEvents>
        <GrossReceiptsOtherEvents>25915</GrossReceiptsOtherEvents>
        <CharitableContribOtherEvents>14203</CharitableContribOtherEvents>
        <GrossRevenueOtherEvents>11712</GrossRevenueOtherEvents>
        <RentFacilityCostsOtherEvents>2751</RentFacilityCostsOtherEvents>
        <FoodAndBeverageOtherEvents>383</FoodAndBeverageOtherEvents>
        <EntertainmentOtherEvents>1500</EntertainmentOtherEvents>
        <OtherDirectExpensesOtherEvents>2070</OtherDirectExpensesOtherEvents>
        <GrossReceiptsTotal>316734</GrossReceiptsTotal>
        <CharitableContributionsTotal>91603</CharitableContributionsTotal>
        <GrossRevenueTotalEvents>225131</GrossRevenueTotalEvents>
        <RentFacilityCostsTotalEvents>7208</RentFacilityCostsTotalEvents>
        <FoodAndBeverageTotalEvents>53400</FoodAndBeverageTotalEvents>
        <EntertainmentTotalEvents>33950</EntertainmentTotalEvents>
        <OtherDirectExpensesTotalEvents>45528</OtherDirectExpensesTotalEvents>
        <DirectExpenseSummaryEvents>140086</DirectExpenseSummaryEvents>
        <NetIncomeSummary>85045</NetIncomeSummary>
      </EventsInformation>
    </IRS990ScheduleG>
    <IRS990ScheduleO documentId="RetDoc1044400001">
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 11</ReturnReference>
        <Explanation>THE FORM 990 WAS POSTED TO THE BOARD WEB SITE AND MEMBERS WERE NOTIFIED OF ITS AVAILABILITY BY EMAIL. BOARD MEMBERS WERE ENCOURAGED TO SHARE ANY QUESTIONS OR OPINIONS WITH MEMBERS OF THE AUDIT COMMITTEE. THE AUDIT COMMITTEE MET IN GREENSBORO TO REVIEW AND APPROVE THE 990 FOR FILING. THE 990 WAS SUBSEQUENTLY PRESENTED FOR FORMAL REVIEW AND APPROVAL BY THE BOARD AT ITS NEXT MEETING.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 12C</ReturnReference>
        <Explanation>THE CONFLICT OF INTEREST POLICY IS REVIEWED AND APPROVED BY THE BOARD ANNUALLY. AN ANNUAL CONFLICT OF INTEREST QUESTIONNAIRE IS COMPLETED BY EACH MEMBER OF THE BOARD. THE QUESTIONNAIRE IS DISTRIBUTED BY AND RETURNED DIRECTLY TO THE AGENCY'S INDEPENDENT AUDITOR. WHEN A CONFLICT OF INTEREST IS RELEVANT TO A MATTER REQUIRING ACTION BY THE BOARD OF TRUSTEES, THE INTERESTED PERSON(S) SHALL CALL IT TO THE ATTENTION OF THE BOARD OF TRUSTEES AND SAID PERSON(S) SHALL NOT VOTE ON THE MATTER. IN ADDITION, THE PERSON(S) SHALL NOT PARTICIPATE IN THE FINAL DELIBERATION OR DECISION REGARDING THE MATTER UNDER CONSIDERATION AND SHALL RETIRE FROM THE ROOM DURING THE VOTE OF THE BOARD OF TRUSTEES. WHEN THERE IS A DOUBT AS TO WHETHER A CONFLICT EXISTS, THE MATTER SHALL BE RESOLVED BY VOTE OF THE BOARD OF TRUSTEES, EXCLUDING THE CONCERNED PERSON(S).</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 15</ReturnReference>
        <Explanation>SALARY RANGES FOR ALL EMPLOYEES ARE ESTABLISHED BY THE HUMAN RESOURCES COMMITTEE OF THE BOARD BASED ON RECOMMENDATIONS FROM THE HUMAN RESOURCES DEPARTMENT. THE BOARD ANNUALLY REVIEWS RANGES IN LIGHT OF SALARY STUDIES OF COMPARABLE ORGANIZATIONS. THE SALARY OF THE PRESIDENT IS RECOMMENDED BY THE HUMAN RESOURCES COMMITTEE AND APPROVED BY THE FULL BOARD.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION C, LINE 18</ReturnReference>
        <Explanation>COPIES OF THE ORGANIZATION'S 990 ARE AVAILABLE ON THE ORGANIZATION'S WEBSITE AND AT THE MAIN OFFICE UPON REQUEST. IN ADDITION, RECENT FILINGS OF THE FORM 990 ARE AVAILABLE ON GUIDESTAR.ORG.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION C, LINE 19</ReturnReference>
        <Explanation>COPIES OF THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO EMPLOYEES AND TO THE TRUSTEES. SUMMARY FINANCIAL INFORMATION IS PROVIDED TO DONORS IN THE ANNUAL REPORT WITH AN INVITATION TO REQUEST COPIES OF THE ANNUAL AUDIT IF SO DESIRED. COPIES OF ALL OTHER DOCUMENTS ARE MADE AVAILABLE TO THE GENERAL PUBLIC ON REQUEST.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>CHANGES IN NET ASSETS OR FUND BALANCES:</Identifier>
        <ReturnReference>FORM 990, PART XI, LINE 9:</ReturnReference>
        <Explanation>DUE FROM FOUNDATION UNRESTRICTED 71,430.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART XII, LINE 2C:</ReturnReference>
        <Explanation>THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR.</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
    <IRS990ScheduleR documentId="RetDoc1043400001">
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>CHILDREN'S HOME SOCIETY FOUNDATION INC</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>PO BOX 14608</AddressLine1>
          <City>GREENSBORO</City>
          <State>NC</State>
          <ZIPCode>27415</ZIPCode>
        </AddressUS>
        <EIN>581368919</EIN>
        <PrimaryActivities>FUNDRAISING / SUPPORTING ORGANIZATION</PrimaryActivities>
        <LegalDomicileState>NC</LegalDomicileState>
        <ExemptCodeSection>501(C)(3)</ExemptCodeSection>
        <PublicCharityStatus>LINE 11B, II</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>THE CHILDREN'S HOME SOCIETY OF NORTH CAROLINA</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>1</ControlledOrg>
      </Form990ScheduleRPartII>
      <ReceiptOfIntAnnRentsRoyalties>0</ReceiptOfIntAnnRentsRoyalties>
      <GiftGrantOrCapContrToOtherOrg>0</GiftGrantOrCapContrToOtherOrg>
      <GiftGrantOrCapContrFrOtherOrg>1</GiftGrantOrCapContrFrOtherOrg>
      <LoansOrGuaranteesToOtherOrg>1</LoansOrGuaranteesToOtherOrg>
      <LoansOrGuaranteesFromOtherOrg>1</LoansOrGuaranteesFromOtherOrg>
      <DividendsRelatedOrganization>0</DividendsRelatedOrganization>
      <SaleOfAssetsToOtherOrg>0</SaleOfAssetsToOtherOrg>
      <PurchaseOfAssetsFromOtherOrg>0</PurchaseOfAssetsFromOtherOrg>
      <ExchangeOfAssets>0</ExchangeOfAssets>
      <RentalOfFacilitiesToOtherOrgs>0</RentalOfFacilitiesToOtherOrgs>
      <RentalOfFacilitiesFrOtherOrgs>0</RentalOfFacilitiesFrOtherOrgs>
      <PerformOfServicesForOtherOrgs>0</PerformOfServicesForOtherOrgs>
      <PerformOfServicesByOtherOrgs>0</PerformOfServicesByOtherOrgs>
      <SharingOfFacilities>1</SharingOfFacilities>
      <SharingOfPaidEmployees>0</SharingOfPaidEmployees>
      <ReimbursementPaidToOtherOrg>1</ReimbursementPaidToOtherOrg>
      <ReimbursementPaidByOtherOrg>0</ReimbursementPaidByOtherOrg>
      <OtherTransferToOtherOrg>0</OtherTransferToOtherOrg>
      <OtherTransferFromOtherOrg>0</OtherTransferFromOtherOrg>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>CHILDREN'S HOME SOCIETY FOUNDATION INC</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>C</TransactionType>
        <AmountInvolved>1425000</AmountInvolved>
        <MethodOfAmtDetermination>CASH</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>CHILDREN'S HOME SOCIETY FOUNDATION INC</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>E</TransactionType>
        <AmountInvolved>1613706</AmountInvolved>
        <MethodOfAmtDetermination>CASH</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
    </IRS990ScheduleR>
  </ReturnData>
</Return>