﻿<?xml version="1.0" encoding="utf-8"?>
<Return xmlns="http://www.irs.gov/efile" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" returnVersion="2012v2.1">
  <ReturnHeader binaryAttachmentCount="0">
    <Timestamp>2013-05-14T15:24:24-05:00</Timestamp>
    <TaxPeriodEndDate>2012-12-31</TaxPeriodEndDate>
    <PreparerFirm>
      <PreparerFirmBusinessName>
        <BusinessNameLine1>HEMRIC &amp; YALE CPAS</BusinessNameLine1>
      </PreparerFirmBusinessName>
      <PreparerFirmUSAddress>
        <AddressLine1>PO BOX 757</AddressLine1>
        <City>NORTH WILKESBORO</City>
        <State>NC</State>
        <ZIPCode>28659</ZIPCode>
      </PreparerFirmUSAddress>
    </PreparerFirm>
    <ReturnType>990PF</ReturnType>
    <TaxPeriodBeginDate>2012-01-01</TaxPeriodBeginDate>
    <Filer>
      <EIN>452571353</EIN>
      <Name>
        <BusinessNameLine1>THE STONE FOUNDATION</BusinessNameLine1>
      </Name>
      <NameControl>STON</NameControl>
      <Phone>3369038965</Phone>
      <USAddress>
        <AddressLine1>149 PARTRIDGE LANE</AddressLine1>
        <City>WILKESBORO</City>
        <State>NC</State>
        <ZIPCode>28697</ZIPCode>
      </USAddress>
    </Filer>
    <Officer>
      <Name>LARRY D STONE</Name>
      <Title>PRESIDENT</Title>
      <Phone>3369038965</Phone>
      <DateSigned>2013-05-07</DateSigned>
    </Officer>
    <Preparer>
      <Name>CARL G YALE</Name>
      <Phone>3368387077</Phone>
      <DatePrepared>2013-05-14</DatePrepared>
      <SelfEmployed>X</SelfEmployed>
    </Preparer>
    <TaxYear>2012</TaxYear>
    <BuildTS>2016-02-25 16:41:14Z</BuildTS>
  </ReturnHeader>
  <ReturnData documentCount="12">
    <IRS990PF documentId="RetDoc1">
      <ExemptPF>X</ExemptPF>
      <FMVAssetsEOY>1952410</FMVAssetsEOY>
      <MethodOfAccountingCash>X</MethodOfAccountingCash>
      <AnalysisOfRevenueAndExpenses>
        <ContriReceivedRevAndExpnss>3840</ContriReceivedRevAndExpnss>
        <NotRequiredToAttachScheduleB>X</NotRequiredToAttachScheduleB>
        <InterestOnSavingsRevAndExpnss>60</InterestOnSavingsRevAndExpnss>
        <InterestOnSavingsNetInvstIncm>60</InterestOnSavingsNetInvstIncm>
        <DividendsRevAndExpnss>35135</DividendsRevAndExpnss>
        <DividendsNetInvstIncm>35135</DividendsNetInvstIncm>
        <NetGainSaleAssetsRevAndExpnss referenceDocumentId="RetDoc4">1583</NetGainSaleAssetsRevAndExpnss>
        <GrossSalesPrice>6693</GrossSalesPrice>
        <CapitalGainNetIncmNetInvstIncm>1929</CapitalGainNetIncmNetInvstIncm>
        <TotalRevenueAndExpenses>40618</TotalRevenueAndExpenses>
        <TotalNetInvestmentIncome>37124</TotalNetInvestmentIncome>
        <LegalFeesRevAndExpnss referenceDocumentId="RetDoc8">1042</LegalFeesRevAndExpnss>
        <AccountingFeesRevAndExpnss referenceDocumentId="RetDoc2">1213</AccountingFeesRevAndExpnss>
        <AccountingFeesNetInvstIncm>1213</AccountingFeesNetInvstIncm>
        <OtherProfFeesRevAndExpnss referenceDocumentId="RetDoc11">20109</OtherProfFeesRevAndExpnss>
        <OtherProfFeesNetInvstIncm>20109</OtherProfFeesNetInvstIncm>
        <TaxesRevAndExpnss referenceDocumentId="RetDoc12">306</TaxesRevAndExpnss>
        <TaxesNetInvstIncm>306</TaxesNetInvstIncm>
        <TravConfMeetingRevAndExpnss>3840</TravConfMeetingRevAndExpnss>
        <TotOprExpensesRevAndExpnss>26510</TotOprExpensesRevAndExpnss>
        <TotOprExpensesNetInvstIncm>21628</TotOprExpensesNetInvstIncm>
        <TotOprExpensesDsbrsChrtblPrps>0</TotOprExpensesDsbrsChrtblPrps>
        <ContriGiftsPaidRevAndExpnss>36595</ContriGiftsPaidRevAndExpnss>
        <ContriGiftsPaidDsbrsChrtblPrps>36595</ContriGiftsPaidDsbrsChrtblPrps>
        <TotalExpensesRevAndExpnss>63105</TotalExpensesRevAndExpnss>
        <TotalExpensesNetInvstIncm>21628</TotalExpensesNetInvstIncm>
        <TotalExpensesDsbrsChrtblPrps>36595</TotalExpensesDsbrsChrtblPrps>
        <ExcessOfRevenueOverExpenses>-22487</ExcessOfRevenueOverExpenses>
        <NetInvestmentIncome>15496</NetInvestmentIncome>
      </AnalysisOfRevenueAndExpenses>
      <BalanceSheets>
        <CashBOY>7000</CashBOY>
        <CashEOY>126</CashEOY>
        <CashEOYFMV>129</CashEOYFMV>
        <SavingsAndTempCashInvstBOY>1533252</SavingsAndTempCashInvstBOY>
        <SavingsAndTempCashInvstEOY>170864</SavingsAndTempCashInvstEOY>
        <SavingsAndTempCashInvstEOYFMV>170864</SavingsAndTempCashInvstEOYFMV>
        <InvestmentsCorpStockBOY>180063</InvestmentsCorpStockBOY>
        <InvestmentsCorpStockEOY referenceDocumentId="RetDoc6">444760</InvestmentsCorpStockEOY>
        <InvestmentsCorpStockEOYFMV>478014</InvestmentsCorpStockEOYFMV>
        <InvestmentsCorpBondsBOY>130005</InvestmentsCorpBondsBOY>
        <InvestmentsCorpBondsEOY referenceDocumentId="RetDoc5">930142</InvestmentsCorpBondsEOY>
        <InvestmentsCorpBondsEOYFMV>941759</InvestmentsCorpBondsEOYFMV>
        <InvestmentsOtherBOY>135010</InvestmentsOtherBOY>
        <InvestmentsOtherEOY referenceDocumentId="RetDoc7">375056</InvestmentsOtherEOY>
        <InvestmentsOtherEOYFMV>361644</InvestmentsOtherEOYFMV>
        <OtherAssetsBOY referenceDocumentId="RetDoc9">1452</OtherAssetsBOY>
        <OtherAssetsEOY referenceDocumentId="RetDoc9">4284</OtherAssetsEOY>
        <TotalAssetsBOY>1986782</TotalAssetsBOY>
        <TotalAssetsEOY>1925232</TotalAssetsEOY>
        <TotalAssetsEOYFMV>1952410</TotalAssetsEOYFMV>
        <TotalLiabilitiesEOY>0</TotalLiabilitiesEOY>
        <OrgThatFollowSFAS117>X</OrgThatFollowSFAS117>
        <UnrestrictedBOY>1986782</UnrestrictedBOY>
        <UnrestrictedEOY>1925232</UnrestrictedEOY>
        <TotalNetAssetsBOY>1986782</TotalNetAssetsBOY>
        <TotalNetAssetsEOY>1925232</TotalNetAssetsEOY>
        <TotalLiabilitiesNetAssetsBOY>1986782</TotalLiabilitiesNetAssetsBOY>
        <TotalLiabilitiesNetAssetsEOY>1925232</TotalLiabilitiesNetAssetsEOY>
      </BalanceSheets>
      <ChangesInNetAssetsFundBalances>
        <TotalNetAssetsFundBalancesBOY>1986782</TotalNetAssetsFundBalancesBOY>
        <ExcessOfRevenueOverExpenses>-22487</ExcessOfRevenueOverExpenses>
        <Subtotal>1964295</Subtotal>
        <OtherDecreases referenceDocumentId="RetDoc10">39063</OtherDecreases>
        <TotalNetAssetsFundBalancesEOY>1925232</TotalNetAssetsFundBalancesEOY>
      </ChangesInNetAssetsFundBalances>
      <CapitalGainsAndLosses>
        <CapitalGainNetIncome>1929</CapitalGainNetIncome>
      </CapitalGainsAndLosses>
      <QlfyUndSect4940eForReducedTax>
        <LiableFor4942Tax>false</LiableFor4942Tax>
        <QualifyingDistributionsYear1>3000</QualifyingDistributionsYear1>
        <NoncharitableAssetsYear1>1955658</NoncharitableAssetsYear1>
        <DistributionRatioYear1>0.001534</DistributionRatioYear1>
        <TotalDistributionRatio>0.001534</TotalDistributionRatio>
        <AverageDistributionRatio>0.001534</AverageDistributionRatio>
        <NetNoncharitableAssets>1926667</NetNoncharitableAssets>
        <AdjustedNoncharitableAssets>2956</AdjustedNoncharitableAssets>
        <OnePercentNetInvestmentIncome>155</OnePercentNetInvestmentIncome>
        <AdjNonchrtblAssetsAndOnePct>3111</AdjNonchrtblAssetsAndOnePct>
        <QualifyingDistributions>36595</QualifyingDistributions>
      </QlfyUndSect4940eForReducedTax>
      <ExciseTaxBasedOnInvestmentIncm>
        <DomesticOrgMeetingSect4940e>X</DomesticOrgMeetingSect4940e>
        <InvestmentIncomeExciseTax>155</InvestmentIncomeExciseTax>
        <Subtotal>155</Subtotal>
        <TaxBasedOnInvestmentIncome>155</TaxBasedOnInvestmentIncome>
        <TaxDue>155</TaxDue>
      </ExciseTaxBasedOnInvestmentIncm>
      <StatementsRegardingActivities>
        <LegislativePoliticalActivities>false</LegislativePoliticalActivities>
        <MoreThan100Spent>false</MoreThan100Spent>
        <Form1120POLFiled>false</Form1120POLFiled>
        <ActivitiesNotPrevReported>false</ActivitiesNotPrevReported>
        <ChangesToArticlesOrBylaws>false</ChangesToArticlesOrBylaws>
        <UnrelatedBusIncomeOver1000>false</UnrelatedBusIncomeOver1000>
        <TerminationEtc>false</TerminationEtc>
        <RequirementsOfSect508e>true</RequirementsOfSect508e>
        <AtLeast5000InAssets>true</AtLeast5000InAssets>
        <StatesFiledWith>NC</StatesFiledWith>
        <Form990PFFiledWithAG>true</Form990PFFiledWithAG>
        <PrivateOperatingFoundation>false</PrivateOperatingFoundation>
        <NewSubstantialContributors>false</NewSubstantialContributors>
        <InterestInControlledEntity>false</InterestInControlledEntity>
        <ApplicableInsuranceContract>false</ApplicableInsuranceContract>
        <ComplyWithPublicInspectionRqr>true</ComplyWithPublicInspectionRqr>
        <WebsiteAddress>N/A</WebsiteAddress>
        <BooksInCareOfPersonName>LARRY D STONE</BooksInCareOfPersonName>
        <BooksInCareOfPhoneNumber>3369038965</BooksInCareOfPhoneNumber>
        <BooksInCareOfUSAddress>
          <AddressLine1>149 PARTRIDGE LANE</AddressLine1>
          <City>WILKESBORO</City>
          <State>NC</State>
          <ZIPCode>28697</ZIPCode>
        </BooksInCareOfUSAddress>
        <ForeignBank>false</ForeignBank>
      </StatementsRegardingActivities>
      <StatementsRegardingActy4720>
        <SaleOrExchangeWithDsqflyPerson>false</SaleOrExchangeWithDsqflyPerson>
        <BorrowOrLendWithDsqflyPerson>false</BorrowOrLendWithDsqflyPerson>
        <FurnishedGoodsWithDsqflyPerson>false</FurnishedGoodsWithDsqflyPerson>
        <PayCompensationToDsqflyPerson>false</PayCompensationToDsqflyPerson>
        <TransferAssetsToDsqflyPerson>false</TransferAssetsToDsqflyPerson>
        <PaymentToGovernmentOffical>false</PaymentToGovernmentOffical>
        <UndistributedIncomePriorYears>false</UndistributedIncomePriorYears>
        <BusinessHoldings>false</BusinessHoldings>
        <JeopardyInvestments>false</JeopardyInvestments>
        <UncorrectedJeopardyInvestments>false</UncorrectedJeopardyInvestments>
        <InfluenceLegislation>false</InfluenceLegislation>
        <InfluenceElection>false</InfluenceElection>
        <GrantsToIndividuals>false</GrantsToIndividuals>
        <GrantsToOrganizations>false</GrantsToOrganizations>
        <NoncharitablePurpose>false</NoncharitablePurpose>
        <RcvFundsToPayPrsnlBnftContract>false</RcvFundsToPayPrsnlBnftContract>
        <PayPremiumsPrsnlBnftContract>false</PayPremiumsPrsnlBnftContract>
        <ProhibitedTaxShelterTransactn>false</ProhibitedTaxShelterTransactn>
      </StatementsRegardingActy4720>
      <OfcrDirTrusteesKeyEmployeeInfo>
        <OfcrDirTrusteesOrKeyEmployee>
          <PersonName referenceDocumentId="RetDoc3">LARRY D STONE</PersonName>
          <USAddress>
            <AddressLine1>149 PARTRIDGE LANE</AddressLine1>
            <City>WILKESBORO</City>
            <State>NC</State>
            <ZIPCode>28697</ZIPCode>
          </USAddress>
          <Title>PRESIDENT</Title>
          <AvgHoursPerWkDevotedToPosition>2.00</AvgHoursPerWkDevotedToPosition>
          <Compensation>0</Compensation>
          <ContriToEmplBenefitPlansEtc>0</ContriToEmplBenefitPlansEtc>
          <ExpenseAccountOtherAllowances>0</ExpenseAccountOtherAllowances>
        </OfcrDirTrusteesOrKeyEmployee>
        <OfcrDirTrusteesOrKeyEmployee>
          <PersonName referenceDocumentId="RetDoc3">DIANE A STONE</PersonName>
          <USAddress>
            <AddressLine1>149 PARTRIDGE LANE</AddressLine1>
            <City>WILKESBORO</City>
            <State>NC</State>
            <ZIPCode>28697</ZIPCode>
          </USAddress>
          <Title>SECRETARY</Title>
          <AvgHoursPerWkDevotedToPosition>1.00</AvgHoursPerWkDevotedToPosition>
          <Compensation>0</Compensation>
          <ContriToEmplBenefitPlansEtc>0</ContriToEmplBenefitPlansEtc>
          <ExpenseAccountOtherAllowances>0</ExpenseAccountOtherAllowances>
        </OfcrDirTrusteesOrKeyEmployee>
        <OfcrDirTrusteesOrKeyEmployee>
          <PersonName referenceDocumentId="RetDoc3">LARRY D STONE JR</PersonName>
          <USAddress>
            <AddressLine1>259 S WILLOW AVENUE</AddressLine1>
            <City>COOKEVILLE</City>
            <State>TN</State>
            <ZIPCode>38501</ZIPCode>
          </USAddress>
          <Title>DIRECTOR</Title>
          <AvgHoursPerWkDevotedToPosition>0.50</AvgHoursPerWkDevotedToPosition>
          <Compensation>0</Compensation>
          <ContriToEmplBenefitPlansEtc>0</ContriToEmplBenefitPlansEtc>
          <ExpenseAccountOtherAllowances>0</ExpenseAccountOtherAllowances>
        </OfcrDirTrusteesOrKeyEmployee>
        <OfcrDirTrusteesOrKeyEmployee>
          <PersonName referenceDocumentId="RetDoc3">CHRIS D STONE</PersonName>
          <USAddress>
            <AddressLine1>1010 SARAH MILES LANE</AddressLine1>
            <City>MANITOWOC</City>
            <State>WI</State>
            <ZIPCode>54220</ZIPCode>
          </USAddress>
          <Title>DIRECTOR</Title>
          <AvgHoursPerWkDevotedToPosition>0.50</AvgHoursPerWkDevotedToPosition>
          <Compensation>0</Compensation>
          <ContriToEmplBenefitPlansEtc>0</ContriToEmplBenefitPlansEtc>
          <ExpenseAccountOtherAllowances>0</ExpenseAccountOtherAllowances>
        </OfcrDirTrusteesOrKeyEmployee>
        <CompOfHighestPaidEmplNONE>NONE</CompOfHighestPaidEmplNONE>
        <CompOfHghstPaidCntrctNONE>NONE</CompOfHghstPaidCntrctNONE>
      </OfcrDirTrusteesKeyEmployeeInfo>
      <SummaryOfDirectCharitableActy>
        <Description1>THE FOUNDATION MAKES CHARITABLE CONTRIBUTIONS TO QUALIFIED PUBLIC CHARITABLE ORGANIZATIONS. CONTRIBUTIONS WERE MADE TO 15 SUCH ORGANIZATIONS IN 2012 (PART XV).</Description1>
      </SummaryOfDirectCharitableActy>
      <SumOfProgramRelatedInvestments>
        <Description1>N/A</Description1>
      </SumOfProgramRelatedInvestments>
      <MinimumInvestmentReturn>
        <AvgMonthlyFMVOfSecurities>1097518</AvgMonthlyFMVOfSecurities>
        <AvgMonthlyCashBalances>855621</AvgMonthlyCashBalances>
        <FMVAllOtherNoncharitableAssets>2868</FMVAllOtherNoncharitableAssets>
        <TotalFMVOfUnusedAssets>1956007</TotalFMVOfUnusedAssets>
        <AdjTotalFMVOfUnusedAssets>1956007</AdjTotalFMVOfUnusedAssets>
        <CashDeemedCharitable>29340</CashDeemedCharitable>
        <NetNoncharitableAssets>1926667</NetNoncharitableAssets>
        <MinimumInvestmentReturn>96333</MinimumInvestmentReturn>
      </MinimumInvestmentReturn>
      <DistributableAmount>
        <MinimumInvestmentReturn>96333</MinimumInvestmentReturn>
        <TaxBasedOnInvestmentIncome>155</TaxBasedOnInvestmentIncome>
        <TotalTax>155</TotalTax>
        <DistributableAmountBeforeAdj>96178</DistributableAmountBeforeAdj>
        <DistributableAmountBeforeDed>96178</DistributableAmountBeforeDed>
        <DistributableAmountAsAdjusted>96178</DistributableAmountAsAdjusted>
      </DistributableAmount>
      <QualifyingDistributions>
        <ExpensesAndContributions>36595</ExpensesAndContributions>
        <QualifyingDistributions>36595</QualifyingDistributions>
        <OnePctSect4940eOrgNetInvstIncm>155</OnePctSect4940eOrgNetInvstIncm>
        <AdjQualifyingDistributions>36440</AdjQualifyingDistributions>
      </QualifyingDistributions>
      <UndistributedIncome>
        <DistributableAmountAsAdjusted>96178</DistributableAmountAsAdjusted>
        <ExcessDistriCarryoverYear1>3000</ExcessDistriCarryoverYear1>
        <TotalExcessDistriCarryover>3000</TotalExcessDistriCarryover>
        <QualifyingDistributions>36595</QualifyingDistributions>
        <AppliedToCurrentYear>36595</AppliedToCurrentYear>
        <ExcessDistriCyovAppCYCorpus>3000</ExcessDistriCyovAppCYCorpus>
        <ExcessDistriCyovAppliedCY>3000</ExcessDistriCyovAppliedCY>
        <UndistributedIncomeCY>56583</UndistributedIncomeCY>
      </UndistributedIncome>
      <SupplementaryInformation>
        <OnlyContributesToPreselected>X</OnlyContributesToPreselected>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>BARIUM SPRINGS HOME FOR CHILDREN</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>507 COURTHOUSE DRIVE</AddressLine1>
            <City>WILKESBORO</City>
            <State>NC</State>
            <ZIPCode>28697</ZIPCode>
          </RecipientUSAddress>
          <PurposeOfGrantOrContribution>UNRESTRICTED</PurposeOfGrantOrContribution>
          <Amount>2000</Amount>
        </GrantOrContriPaidDuringYear>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>WILKES EDC</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>213 NINTH ST</AddressLine1>
            <City>NORTH WILKESBORO</City>
            <State>NC</State>
            <ZIPCode>28659</ZIPCode>
          </RecipientUSAddress>
          <PurposeOfGrantOrContribution>UNRESTRICTED</PurposeOfGrantOrContribution>
          <Amount>5000</Amount>
        </GrantOrContriPaidDuringYear>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>WILKES COUNTY SCHOOLS</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>613 CHERRY ST</AddressLine1>
            <City>NORTH WILKESBORO</City>
            <State>NC</State>
            <ZIPCode>28659</ZIPCode>
          </RecipientUSAddress>
          <PurposeOfGrantOrContribution>UNRESTRICTED</PurposeOfGrantOrContribution>
          <Amount>1500</Amount>
        </GrantOrContriPaidDuringYear>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>WILKES PREGNANCY CARE CENTER</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>1224 SCHOOL ST</AddressLine1>
            <City>WILKESBORO</City>
            <State>NC</State>
            <ZIPCode>28697</ZIPCode>
          </RecipientUSAddress>
          <PurposeOfGrantOrContribution>UNRESTRICTED</PurposeOfGrantOrContribution>
          <Amount>500</Amount>
        </GrantOrContriPaidDuringYear>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>BOY SCOUTS-OLD HICKORY COUNCIL</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>6600 SILAS CREEK</AddressLine1>
            <City>WINSTONSALEM</City>
            <State>NC</State>
            <ZIPCode>27106</ZIPCode>
          </RecipientUSAddress>
          <PurposeOfGrantOrContribution>UNRESTRICTED</PurposeOfGrantOrContribution>
          <Amount>500</Amount>
        </GrantOrContriPaidDuringYear>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>PRESBYTERIAN HEALTHCARE FOUNDATION</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>PO BOX 33549</AddressLine1>
            <City>CHARLOTTE</City>
            <State>NC</State>
            <ZIPCode>28233</ZIPCode>
          </RecipientUSAddress>
          <PurposeOfGrantOrContribution>UNRESTRICTED</PurposeOfGrantOrContribution>
          <Amount>1240</Amount>
        </GrantOrContriPaidDuringYear>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>WILKES CC ENDOWMENT</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>PO BOX 120</AddressLine1>
            <City>WILKESBORO</City>
            <State>NC</State>
            <ZIPCode>28697</ZIPCode>
          </RecipientUSAddress>
          <PurposeOfGrantOrContribution>UNRESTRICTED</PurposeOfGrantOrContribution>
          <Amount>125</Amount>
        </GrantOrContriPaidDuringYear>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>CYSTIC FIBROSIS FOUNDATION</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>6931 ARLINGTON RD</AddressLine1>
            <City>BETHESDA</City>
            <State>MD</State>
            <ZIPCode>20814</ZIPCode>
          </RecipientUSAddress>
          <PurposeOfGrantOrContribution>UNRESTRICTED</PurposeOfGrantOrContribution>
          <Amount>200</Amount>
        </GrantOrContriPaidDuringYear>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>THE HEALTH FOUNDATION</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>PO BOX 667</AddressLine1>
            <City>NORTH WILKESBORO</City>
            <State>NC</State>
            <ZIPCode>28659</ZIPCode>
          </RecipientUSAddress>
          <PurposeOfGrantOrContribution>UNRESTRICTED</PurposeOfGrantOrContribution>
          <Amount>10000</Amount>
        </GrantOrContriPaidDuringYear>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>UNIVERSITY OF WISCONSIN-MANITOWOC</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>705 VIEBAHN ST</AddressLine1>
            <City>MANITIWOC</City>
            <State>WI</State>
            <ZIPCode>54220</ZIPCode>
          </RecipientUSAddress>
          <PurposeOfGrantOrContribution>UNRESTRICTED</PurposeOfGrantOrContribution>
          <Amount>2000</Amount>
        </GrantOrContriPaidDuringYear>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>PUTNAM CO HABITAT FOR HUMANITY</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>728 E 15TH ST</AddressLine1>
            <City>COOKEVILLE</City>
            <State>TN</State>
            <ZIPCode>38501</ZIPCode>
          </RecipientUSAddress>
          <PurposeOfGrantOrContribution>UNRESTRICTED</PurposeOfGrantOrContribution>
          <Amount>1000</Amount>
        </GrantOrContriPaidDuringYear>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>FRIENDS OF COOKEVILLE ANIMALS</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>PO BOX 2615</AddressLine1>
            <City>COOKEVILLE</City>
            <State>TN</State>
            <ZIPCode>38502</ZIPCode>
          </RecipientUSAddress>
          <PurposeOfGrantOrContribution>UNRESTRICTED</PurposeOfGrantOrContribution>
          <Amount>1000</Amount>
        </GrantOrContriPaidDuringYear>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>WILKES HERITAGE MUSEUM</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>PO BOX 935</AddressLine1>
            <City>WILKESBORO</City>
            <State>NC</State>
            <ZIPCode>28697</ZIPCode>
          </RecipientUSAddress>
          <PurposeOfGrantOrContribution>UNRESTRICTED</PurposeOfGrantOrContribution>
          <Amount>1080</Amount>
        </GrantOrContriPaidDuringYear>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>YMCA OF NORTHWEST NC</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>HWY 268W</AddressLine1>
            <City>WILKESBORO</City>
            <State>NC</State>
            <ZIPCode>28697</ZIPCode>
          </RecipientUSAddress>
          <PurposeOfGrantOrContribution>UNRESTRICTED</PurposeOfGrantOrContribution>
          <Amount>10000</Amount>
        </GrantOrContriPaidDuringYear>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>WILKES EDUCATIONAL FOUNDATION</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>613 CHERRY ST</AddressLine1>
            <City>NORTH WILKESBORO</City>
            <State>NC</State>
            <ZIPCode>28659</ZIPCode>
          </RecipientUSAddress>
          <PurposeOfGrantOrContribution>UNRESTRICTED</PurposeOfGrantOrContribution>
          <Amount>450</Amount>
        </GrantOrContriPaidDuringYear>
        <TotGrantOrContriPaidDuringYear>36595</TotGrantOrContriPaidDuringYear>
      </SupplementaryInformation>
      <AnalysisIncomeProducingActy>
        <IntOnSavingsAndTempCashInvst>
          <RelatedOrExemptFunctionIncome>60</RelatedOrExemptFunctionIncome>
        </IntOnSavingsAndTempCashInvst>
        <DividendsAndIntFromSecPartVII>
          <RelatedOrExemptFunctionIncome>35135</RelatedOrExemptFunctionIncome>
        </DividendsAndIntFromSecPartVII>
        <GainSalesAssetsOthThanInvntry>
          <RelatedOrExemptFunctionIncome>1583</RelatedOrExemptFunctionIncome>
        </GainSalesAssetsOthThanInvntry>
        <SubtotalsPartXVIA>
          <RelatedOrExemptFunctionIncome>36778</RelatedOrExemptFunctionIncome>
        </SubtotalsPartXVIA>
        <TotalPartXVIA>36778</TotalPartXVIA>
      </AnalysisIncomeProducingActy>
      <TrnsfrTrRlnWithNoncharitableEO>
        <TrnsfrOfCashToNoncharitableEO>false</TrnsfrOfCashToNoncharitableEO>
        <TrnsfrOthAssetsNoncharitableEO>false</TrnsfrOthAssetsNoncharitableEO>
        <SalesOrExchangesOfAssets>false</SalesOrExchangesOfAssets>
        <PurchaseAssetsNoncharitableEO>false</PurchaseAssetsNoncharitableEO>
        <RentalOfFacilitiesEtc>false</RentalOfFacilitiesEtc>
        <ReimbursementArrangements>false</ReimbursementArrangements>
        <LoansOrLoanGuarantees>false</LoansOrLoanGuarantees>
        <PerformanceOfServicesEtc>false</PerformanceOfServicesEtc>
        <SharingOfFacilitiesEtc>false</SharingOfFacilitiesEtc>
        <RelationshipsNoncharitableEOs>false</RelationshipsNoncharitableEOs>
      </TrnsfrTrRlnWithNoncharitableEO>
    </IRS990PF>
    <AccountingFeesSchedule documentId="RetDoc2">
      <AccountingFees>
        <Category>TAX RETURN PREPARATION</Category>
        <Amount>1213</Amount>
        <NetInvestmentIncome>1213</NetInvestmentIncome>
      </AccountingFees>
    </AccountingFeesSchedule>
    <CompensationExplanation documentId="RetDoc3">
      <Compensation>
        <PersonName>LARRY D STONE</PersonName>
      </Compensation>
      <Compensation>
        <PersonName>DIANE A STONE</PersonName>
      </Compensation>
      <Compensation>
        <PersonName>LARRY D STONE JR</PersonName>
      </Compensation>
      <Compensation>
        <PersonName>CHRIS D STONE</PersonName>
      </Compensation>
    </CompensationExplanation>
    <GainLossSaleOtherAssetsSch documentId="RetDoc4">
      <GainLossSaleOtherAsset>
        <Name>TCW SMALL CAP GROWTH</Name>
        <DateAcquired>2012-08</DateAcquired>
        <HowAcquired>PURCHASE</HowAcquired>
        <DateSold>2012-11</DateSold>
        <GrossSalesPrice>4657</GrossSalesPrice>
        <Basis>5000</Basis>
        <TotalNet>-343</TotalNet>
      </GainLossSaleOtherAsset>
      <GainLossSaleOtherAsset>
        <Name>ISHARES GOLD TRUST</Name>
        <DateAcquired>2011-01</DateAcquired>
        <HowAcquired>PURCHASE</HowAcquired>
        <DateSold>2012-06</DateSold>
        <GrossSalesPrice>107</GrossSalesPrice>
        <Basis>110</Basis>
        <TotalNet>-3</TotalNet>
      </GainLossSaleOtherAsset>
    </GainLossSaleOtherAssetsSch>
    <InvestmentsCorpBondsSchedule documentId="RetDoc5">
      <InvestmentsCorpBonds>
        <NameOfBond>PIMCO LOW DURATION FUND</NameOfBond>
        <EOYBookValue>150000</EOYBookValue>
        <EOYFMV>151832</EOYFMV>
      </InvestmentsCorpBonds>
      <InvestmentsCorpBonds>
        <NameOfBond>VANGUARD SHORT TERM BOND</NameOfBond>
        <EOYBookValue>150009</EOYBookValue>
        <EOYFMV>149346</EOYFMV>
      </InvestmentsCorpBonds>
      <InvestmentsCorpBonds>
        <NameOfBond>PIMCO EMERGING LOCAL BOND</NameOfBond>
        <EOYBookValue>40000</EOYBookValue>
        <EOYFMV>43269</EOYFMV>
      </InvestmentsCorpBonds>
      <InvestmentsCorpBonds>
        <NameOfBond>EATON VANCE FLOATING RATE</NameOfBond>
        <EOYBookValue>15000</EOYBookValue>
        <EOYFMV>15336</EOYFMV>
      </InvestmentsCorpBonds>
      <InvestmentsCorpBonds>
        <NameOfBond>ISHARES BARCLAYS SHORT TREAS</NameOfBond>
        <EOYBookValue>250133</EOYBookValue>
        <EOYFMV>250180</EOYFMV>
      </InvestmentsCorpBonds>
      <InvestmentsCorpBonds>
        <NameOfBond>JPMORGAN HIGH YIELD</NameOfBond>
        <EOYBookValue>35000</EOYBookValue>
        <EOYFMV>36386</EOYFMV>
      </InvestmentsCorpBonds>
      <InvestmentsCorpBonds>
        <NameOfBond>WELLS FARGO ADV ULTRA SHORT</NameOfBond>
        <EOYBookValue>250000</EOYBookValue>
        <EOYFMV>251765</EOYFMV>
      </InvestmentsCorpBonds>
      <InvestmentsCorpBonds>
        <NameOfBond>FIDELITY EMERGING MKTS</NameOfBond>
        <EOYBookValue>40000</EOYBookValue>
        <EOYFMV>43645</EOYFMV>
      </InvestmentsCorpBonds>
    </InvestmentsCorpBondsSchedule>
    <InvestmentsCorpStockSchedule documentId="RetDoc6">
      <InvestmentsCorpStock>
        <NameOfStock>FEDERATED STRATEGIC VALUE DIVIDEND</NameOfStock>
        <EOYBookValue>155000</EOYBookValue>
        <EOYFMV>161371</EOYFMV>
      </InvestmentsCorpStock>
      <InvestmentsCorpStock>
        <NameOfStock>JP MORGAN MID CAP VALUE</NameOfStock>
        <EOYBookValue>55000</EOYBookValue>
        <EOYFMV>64134</EOYFMV>
      </InvestmentsCorpStock>
      <InvestmentsCorpStock>
        <NameOfStock>VANGUARD MSCI EMERGING MARKETS</NameOfStock>
        <EOYBookValue>80056</EOYBookValue>
        <EOYFMV>89951</EOYFMV>
      </InvestmentsCorpStock>
      <InvestmentsCorpStock>
        <NameOfStock>HARBOR CAP APPRECIATION</NameOfStock>
        <EOYBookValue>95000</EOYBookValue>
        <EOYFMV>100441</EOYFMV>
      </InvestmentsCorpStock>
      <InvestmentsCorpStock>
        <NameOfStock>ISHARES RUSSELL 2000</NameOfStock>
        <EOYBookValue>4704</EOYBookValue>
        <EOYFMV>4956</EOYFMV>
      </InvestmentsCorpStock>
      <InvestmentsCorpStock>
        <NameOfStock>KEELEY SMALL CAP VALUE</NameOfStock>
        <EOYBookValue>5000</EOYBookValue>
        <EOYFMV>5459</EOYFMV>
      </InvestmentsCorpStock>
      <InvestmentsCorpStock>
        <NameOfStock>DELAWARE POOLED INTL EQUITY</NameOfStock>
        <EOYBookValue>50000</EOYBookValue>
        <EOYFMV>51702</EOYFMV>
      </InvestmentsCorpStock>
    </InvestmentsCorpStockSchedule>
    <InvestmentsOtherSchedule2 documentId="RetDoc7">
      <InvestmentsOther>
        <CategoryOrItem>AQR MANAGED FUTURES</CategoryOrItem>
        <ListedAtCostOrFMV>AT COST</ListedAtCostOrFMV>
        <BookValue>45000</BookValue>
        <EOYFMV>44965</EOYFMV>
      </InvestmentsOther>
      <InvestmentsOther>
        <CategoryOrItem>EATON VANCE GLOBAL MACRO</CategoryOrItem>
        <ListedAtCostOrFMV>AT COST</ListedAtCostOrFMV>
        <BookValue>60000</BookValue>
        <EOYFMV>59539</EOYFMV>
      </InvestmentsOther>
      <InvestmentsOther>
        <CategoryOrItem>HUSSMAN STRATEGIC GROWTH</CategoryOrItem>
        <ListedAtCostOrFMV>AT COST</ListedAtCostOrFMV>
        <BookValue>135000</BookValue>
        <EOYFMV>124389</EOYFMV>
      </InvestmentsOther>
      <InvestmentsOther>
        <CategoryOrItem>MERGER FUND</CategoryOrItem>
        <ListedAtCostOrFMV>AT COST</ListedAtCostOrFMV>
        <BookValue>50000</BookValue>
        <EOYFMV>50150</EOYFMV>
      </InvestmentsOther>
      <InvestmentsOther>
        <CategoryOrItem>ISHARES GOLD TRUST</CategoryOrItem>
        <ListedAtCostOrFMV>AT COST</ListedAtCostOrFMV>
        <BookValue>45056</BookValue>
        <EOYFMV>45402</EOYFMV>
      </InvestmentsOther>
      <InvestmentsOther>
        <CategoryOrItem>PIMCO COMMODITY REAL RETURN</CategoryOrItem>
        <ListedAtCostOrFMV>AT COST</ListedAtCostOrFMV>
        <BookValue>40000</BookValue>
        <EOYFMV>37199</EOYFMV>
      </InvestmentsOther>
    </InvestmentsOtherSchedule2>
    <LegalFeesSchedule documentId="RetDoc8">
      <LegalFees>
        <Category>LEGAL FEES</Category>
        <Amount>1042</Amount>
      </LegalFees>
    </LegalFeesSchedule>
    <OtherAssetsSchedule documentId="RetDoc9">
      <OtherAssets>
        <Description>DIVIDENDS RECEIVED AFTER 12/31</Description>
        <BOYBookValue>1452</BOYBookValue>
        <EOYBookValue>4284</EOYBookValue>
      </OtherAssets>
    </OtherAssetsSchedule>
    <OtherDecreasesSchedule documentId="RetDoc10">
      <OtherDecreases>
        <Description>2011 EXCISE TAX</Description>
        <Amount>37740</Amount>
      </OtherDecreases>
      <OtherDecreases>
        <Description>PENALTIES</Description>
        <Amount>1323</Amount>
      </OtherDecreases>
    </OtherDecreasesSchedule>
    <OtherProfessionalFeesSchedule documentId="RetDoc11">
      <OtherProfessionalFees>
        <Category>INVESTMENT FEES - WELL FARGO</Category>
        <Amount>20109</Amount>
        <NetInvestmentIncome>20109</NetInvestmentIncome>
      </OtherProfessionalFees>
    </OtherProfessionalFeesSchedule>
    <TaxesSchedule documentId="RetDoc12">
      <Taxes>
        <Category>FOREIGN TAXES PAID</Category>
        <Amount>306</Amount>
        <NetInvestmentIncome>306</NetInvestmentIncome>
      </Taxes>
    </TaxesSchedule>
  </ReturnData>
</Return>