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  <ReturnHeader binaryAttachmentCount="0">
    <Timestamp>2013-08-14T07:35:53-07:00</Timestamp>
    <TaxPeriodEndDate>2012-12-31</TaxPeriodEndDate>
    <PreparerFirm>
      <PreparerFirmBusinessName>
        <BusinessNameLine1>SCOTT RAGSDALE CPA</BusinessNameLine1>
      </PreparerFirmBusinessName>
      <PreparerFirmUSAddress>
        <AddressLine1>603-B UPSON ST</AddressLine1>
        <City>AUSTIN</City>
        <State>TX</State>
        <ZIPCode>78703</ZIPCode>
      </PreparerFirmUSAddress>
    </PreparerFirm>
    <ReturnType>990EZ</ReturnType>
    <TaxPeriodBeginDate>2012-01-01</TaxPeriodBeginDate>
    <Filer>
      <EIN>272108244</EIN>
      <Name>
        <BusinessNameLine1>THE PEGASUS PROJECT INC</BusinessNameLine1>
      </Name>
      <NameControl>PEGA</NameControl>
      <Phone>9034842255</Phone>
      <USAddress>
        <AddressLine1>PO BOX 26</AddressLine1>
        <City>BEN WHEELER</City>
        <State>TX</State>
        <ZIPCode>757540026</ZIPCode>
      </USAddress>
    </Filer>
    <Officer>
      <Name>ALLYSON PERKINS DECANIO</Name>
      <Title>PRESIDENT</Title>
      <Phone>9034842255</Phone>
      <DateSigned>2013-08-13</DateSigned>
      <AuthorizeThirdParty>true</AuthorizeThirdParty>
    </Officer>
    <Preparer>
      <Name>SCOTT RAGSDALE</Name>
      <Phone>5124741778</Phone>
      <DatePrepared>2013-08-14</DatePrepared>
    </Preparer>
    <TaxYear>2012</TaxYear>
    <BuildTS>2016-02-24 21:20:13Z</BuildTS>
  </ReturnHeader>
  <ReturnData documentCount="3">
    <IRS990EZ documentId="00000001" referenceDocumentName="IRS990ScheduleO ReasonableCauseExplanation TransfersPersonalBenefitsContractsDeclaration">
      <MethodOfAccountingCash>X</MethodOfAccountingCash>
      <ScheduleBNotRequired>X</ScheduleBNotRequired>
      <WebSite>www.PegasusRescue.org</WebSite>
      <Organization501c3 referenceDocumentId="00000002" referenceDocumentName="IRS990ScheduleA">X</Organization501c3>
      <GrossReceipts>122242</GrossReceipts>
      <InfoInScheduleOPartI>X</InfoInScheduleOPartI>
      <ContributionsGiftsGrantsEtc>82770</ContributionsGiftsGrantsEtc>
      <ProgramServiceRevenue>39472</ProgramServiceRevenue>
      <MembershipDues>0</MembershipDues>
      <InvestmentIncome>0</InvestmentIncome>
      <CostOtherBasisAndSalesExpenses>0</CostOtherBasisAndSalesExpenses>
      <GainOrLossFromSaleOfAssets>0</GainOrLossFromSaleOfAssets>
      <GamingGrossIncome>0</GamingGrossIncome>
      <FundraisingGrossIncome>0</FundraisingGrossIncome>
      <SpecialEventsDirectExpenses>0</SpecialEventsDirectExpenses>
      <SpecialEventsNetIncomeLoss>0</SpecialEventsNetIncomeLoss>
      <CostOfGoodsSold>0</CostOfGoodsSold>
      <GroProfitLossSalesOfInventory>0</GroProfitLossSalesOfInventory>
      <TotalRevenue>122242</TotalRevenue>
      <FeesAndOthPymtToIndContractors>63779</FeesAndOthPymtToIndContractors>
      <PrintingPublicationsPostage>463</PrintingPublicationsPostage>
      <OtherExpensesTotal>37108</OtherExpensesTotal>
      <TotalExpenses>101350</TotalExpenses>
      <ExcessOrDeficitForYear>20892</ExcessOrDeficitForYear>
      <NetAssetsOrFundBalancesBOY>13547</NetAssetsOrFundBalancesBOY>
      <NetAssetsOrFundBalancesEOY>34439</NetAssetsOrFundBalancesEOY>
      <CashSavingsAndInvestments>
        <BOY>13547</BOY>
        <EOY>34439</EOY>
      </CashSavingsAndInvestments>
      <TotalAssets>
        <BOY>13547</BOY>
        <EOY>34439</EOY>
      </TotalAssets>
      <NetAssetsOrFundBalances>
        <BOY>13547</BOY>
        <EOY>34439</EOY>
      </NetAssetsOrFundBalances>
      <InfoInScheduleOPartIII>X</InfoInScheduleOPartIII>
      <PrimaryExemptPurpose>Rescue, rehabilitation &amp; placement of neglected horses.</PrimaryExemptPurpose>
      <ProgramServiceAccomplishment>
        <DescriptionProgramServiceAccom>No people benefited from Expenses; neglected horses were rescued and received care, attention, proper nutrition and medical care and efforts toward placement &amp; adoption.</DescriptionProgramServiceAccom>
        <ProgramServiceExpenses>101350</ProgramServiceExpenses>
      </ProgramServiceAccomplishment>
      <TotalProgramServiceExpenses>101350</TotalProgramServiceExpenses>
      <OfficerDirectorTrusteeKeyEmpl>
        <PersonName>ALLYSON PERKINS DECANIO</PersonName>
        <Title>President/ Director</Title>
        <AvgHoursPerWkDevotedToPosition>30.00</AvgHoursPerWkDevotedToPosition>
        <Compensation>0</Compensation>
      </OfficerDirectorTrusteeKeyEmpl>
      <OfficerDirectorTrusteeKeyEmpl>
        <PersonName>WILLIAM MICHAEL DECANIO</PersonName>
        <Title>Vice President/ Director</Title>
        <AvgHoursPerWkDevotedToPosition>20.00</AvgHoursPerWkDevotedToPosition>
        <Compensation>0</Compensation>
      </OfficerDirectorTrusteeKeyEmpl>
      <OfficerDirectorTrusteeKeyEmpl>
        <PersonName>LORNA RUSSELL</PersonName>
        <Title>Secretary/ Director</Title>
        <AvgHoursPerWkDevotedToPosition>10.00</AvgHoursPerWkDevotedToPosition>
        <Compensation>0</Compensation>
      </OfficerDirectorTrusteeKeyEmpl>
      <OfficerDirectorTrusteeKeyEmpl>
        <PersonName>PAT MOCK</PersonName>
        <Title>Treasurer/ Director</Title>
        <AvgHoursPerWkDevotedToPosition>1.00</AvgHoursPerWkDevotedToPosition>
        <Compensation>0</Compensation>
      </OfficerDirectorTrusteeKeyEmpl>
      <OfficerDirectorTrusteeKeyEmpl>
        <PersonName>LINDA KLOTZ</PersonName>
        <Title>Director</Title>
        <AvgHoursPerWkDevotedToPosition>5.00</AvgHoursPerWkDevotedToPosition>
        <Compensation>0</Compensation>
      </OfficerDirectorTrusteeKeyEmpl>
      <ActivitiesNotPreviouslyRpt>false</ActivitiesNotPreviouslyRpt>
      <MadeChangesToOrgnzngEtcDoc>false</MadeChangesToOrgnzngEtcDoc>
      <OrganizationHadUBI>false</OrganizationHadUBI>
      <SubjectToProxyTax referenceDocumentName="IRS990ScheduleC">false</SubjectToProxyTax>
      <OrganizationDissolvedEtc referenceDocumentName="IRS990ScheduleN BinaryAttachment">false</OrganizationDissolvedEtc>
      <DidOrgFileForm1120POLThisYear>false</DidOrgFileForm1120POLThisYear>
      <MadeLoansToFromOfficers>false</MadeLoansToFromOfficers>
      <EngagedInExcessBenefitTrans>false</EngagedInExcessBenefitTrans>
      <ProhibitedTaxShelterTrans>false</ProhibitedTaxShelterTrans>
      <TheBooksAreInCareOf>
        <NamePerson>ALLYSON PERKINS DECANIO</NamePerson>
        <AddressUS>
          <AddressLine1>7111 FM 2339</AddressLine1>
          <City>MURCHISON</City>
          <State>TX</State>
          <ZIPCode>75778</ZIPCode>
        </AddressUS>
        <TelephoneNumber>9035399851</TelephoneNumber>
      </TheBooksAreInCareOf>
      <ForeignFinancialAccount>false</ForeignFinancialAccount>
      <ForeignOffice>false</ForeignOffice>
      <MaintainAnyDonorAdvisedFunds>false</MaintainAnyDonorAdvisedFunds>
      <DoesOrgHaveHospital>false</DoesOrgHaveHospital>
      <TanningServicesProvided>false</TanningServicesProvided>
      <RelatedOrgControlledEntity>false</RelatedOrgControlledEntity>
      <TransactionWithControlEntity>false</TransactionWithControlEntity>
      <EngagePoliticalCmpgnActivities>false</EngagePoliticalCmpgnActivities>
      <EngageInLobbyingActivities>false</EngageInLobbyingActivities>
      <OperatingSchool>false</OperatingSchool>
      <TrnsfrsExemptNonCharRelatedOrg>false</TrnsfrsExemptNonCharRelatedOrg>
      <PartVIOfCompOfHighestPaidEmpl>NONE</PartVIOfCompOfHighestPaidEmpl>
      <PartVIAHghstPaidCntrctProfSer>NONE</PartVIAHghstPaidCntrctProfSer>
    </IRS990EZ>
    <IRS990ScheduleA documentId="00000002" softwareId="12000225">
      <PubliclySupportedOrg509a2>X</PubliclySupportedOrg509a2>
      <PublicSupportTotal170>0</PublicSupportTotal170>
      <GrossInvestmentIncome170>
        <Total>0</Total>
      </GrossInvestmentIncome170>
      <PublicSupportPertcentage170>0</PublicSupportPertcentage170>
      <GiftsGrantsContribReceived509>
        <CurrentTaxYearMinus2Years>14875</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>27359</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>82770</CurrentTaxYear>
        <Total>125004</Total>
      </GiftsGrantsContribReceived509>
      <GrossReceiptsFromAdmissions>
        <CurrentTaxYearMinus2Years>930</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>12597</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>39472</CurrentTaxYear>
        <Total>52999</Total>
      </GrossReceiptsFromAdmissions>
      <Total509>
        <CurrentTaxYearMinus2Years>15805</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>39956</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>122242</CurrentTaxYear>
        <Total>178003</Total>
      </Total509>
      <PublicSupportTotal509>178003</PublicSupportTotal509>
      <TotalSupportTotal>
        <Total>178003</Total>
      </TotalSupportTotal>
      <PublicSupportPercentage509>1.00000</PublicSupportPercentage509>
      <PriorYearSupportPercentage>1.00000</PriorYearSupportPercentage>
      <InvestmentIncomePercentage>0</InvestmentIncomePercentage>
      <ThirtyThreePercntTestsCY509>X</ThirtyThreePercntTestsCY509>
    </IRS990ScheduleA>
    <IRS990ScheduleO documentId="00000003" softwareId="12000225">
      <GeneralExplanation>
        <Explanation>Schedule O - Line 16</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>Boarding fees $ 130</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>horse feed $8,459</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>PO Box, Paypal &amp; bank $ 728</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>Hay cost $ 10,169</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>Pine Shavings $ 1,672</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>Nutritional supplements $ 3,706</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>Burial fees $ 275</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>Pasture maintenance $ 2,879</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>farm supplies $ 1,209</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>Website Maintenance $ 348</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>Horse Tack $ 855</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>Fuel $ 1,725</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>Ranch tools etc $ 4,953</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>Schedule O Line # 13</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>Accountant $ 399</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>Horse Farrier $ 7,690</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>Vet $ 8,236</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>Equine Dentist $ 400</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>Horse Trainers $ 25,750</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>Horse Chiropractor $ 550</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>Horse ranch hands $ 20,754</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990EZ, Part I, Line 16</Identifier>
        <Explanation>BOARDING FEES 130. HORSE FEED 8459. P.O. BOX, PAYPAL AND BANK FEES 728. HAY COST 10169. PINE SHAVINGS FOR STALL BEDDING 773. NURTITIONAL SUPPLEMENTS 1407. BURIAL FEES 275. PINE SHAVINGS 899. DIETARY SUPPLEMENTS, MEDICATIONS, SUPPLIES 2299. PASTURE FERTILIZER AND HERBICIDE 2879. FARM SUPPLIES 1209. WEBSITE MAINTENANCE FEES 348. HORSE TACK 855. FUEL 1725. RANCH TOOLS AND EQUIPMENT PURCHASES 4953.</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
  </ReturnData>
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