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    <Timestamp>2012-05-14T07:23:31-07:00</Timestamp>
    <TaxPeriodEndDate>2011-12-31</TaxPeriodEndDate>
    <PreparerFirm>
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        <BusinessNameLine1>ALVARADO CPA FIRM INC</BusinessNameLine1>
      </PreparerFirmBusinessName>
      <PreparerFirmUSAddress>
        <AddressLine1>2041 ORCHID AVENUE</AddressLine1>
        <City>MCALLEN</City>
        <State>TX</State>
        <ZIPCode>78504</ZIPCode>
      </PreparerFirmUSAddress>
    </PreparerFirm>
    <ReturnType>990PF</ReturnType>
    <TaxPeriodBeginDate>2011-01-01</TaxPeriodBeginDate>
    <Filer>
      <EIN>320181077</EIN>
      <Name>
        <BusinessNameLine1>SEVEN CITIES FOUNDATION</BusinessNameLine1>
      </Name>
      <NameControl>SEVE</NameControl>
      <Phone>9566885757</Phone>
      <USAddress>
        <AddressLine1>314 S 11TH STREET</AddressLine1>
        <City>MCALLEN</City>
        <State>TX</State>
        <ZIPCode>78501</ZIPCode>
      </USAddress>
    </Filer>
    <Officer>
      <Name>CHARLES E THOMPSON JR</Name>
      <Title>FOUNDATION MANAGER</Title>
      <Phone>9566885757</Phone>
      <DateSigned>2012-05-14</DateSigned>
    </Officer>
    <Preparer>
      <Name>KENNETH F BURFORD</Name>
      <Phone>9566822884</Phone>
    </Preparer>
    <TaxYear>2011</TaxYear>
    <BuildTS>2016-02-24 21:20:13Z</BuildTS>
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      <AnalysisOfRevenueAndExpenses>
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      <QlfyUndSect4940eForReducedTax>
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        <DistributionRatioYear1>0.037491</DistributionRatioYear1>
        <QualifyingDistributionsYear2>159959</QualifyingDistributionsYear2>
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        <DistributionRatioYear3>0.072909</DistributionRatioYear3>
        <QualifyingDistributionsYear4>38596</QualifyingDistributionsYear4>
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        <DistributionRatioYear4>0.011495</DistributionRatioYear4>
        <NoncharitableAssetsYear5>3100109</NoncharitableAssetsYear5>
        <DistributionRatioYear5>0.000000</DistributionRatioYear5>
        <TotalDistributionRatio>0.175603</TotalDistributionRatio>
        <AverageDistributionRatio>0.035121</AverageDistributionRatio>
        <NetNoncharitableAssets>2940561</NetNoncharitableAssets>
        <AdjustedNoncharitableAssets>103275</AdjustedNoncharitableAssets>
        <OnePercentNetInvestmentIncome>1244</OnePercentNetInvestmentIncome>
        <AdjNonchrtblAssetsAndOnePct>104519</AdjNonchrtblAssetsAndOnePct>
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      <ExciseTaxBasedOnInvestmentIncm>
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        <TaxUnderSection511>0</TaxUnderSection511>
        <Subtotal>1244</Subtotal>
        <TaxBasedOnInvestmentIncome>1244</TaxBasedOnInvestmentIncome>
        <EstTaxPaymentsAndOverpayment>135</EstTaxPaymentsAndOverpayment>
        <TotalCreditsAndPayments>135</TotalCreditsAndPayments>
        <TaxPaidOriginalReturn>135</TaxPaidOriginalReturn>
        <TaxDue>1109</TaxDue>
        <AmountCreditedToNextYear>0</AmountCreditedToNextYear>
      </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>TX</StatesFiledWith>
        <Form990PFFiledWithAG>true</Form990PFFiledWithAG>
        <PrivateOperatingFoundation>false</PrivateOperatingFoundation>
        <NewSubstantialContributors>false</NewSubstantialContributors>
        <InterestInControlledEntity>false</InterestInControlledEntity>
        <ApplicableInsuranceContract>false</ApplicableInsuranceContract>
        <ComplyWithPublicInspectionRqr>true</ComplyWithPublicInspectionRqr>
        <WebsiteAddress>N/A</WebsiteAddress>
        <BooksInCareOfPersonName>CHARLES E THOMPSON JR</BooksInCareOfPersonName>
        <BooksInCareOfPhoneNumber>9566885757</BooksInCareOfPhoneNumber>
        <BooksInCareOfUSAddress>
          <AddressLine1>314 S 11TH STREET</AddressLine1>
          <City>MCALLEN</City>
          <State>TX</State>
          <ZIPCode>785012822</ZIPCode>
        </BooksInCareOfUSAddress>
        <ForeignBank>false</ForeignBank>
      </StatementsRegardingActivities>
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        <SaleOrExchangeWithDsqflyPerson>false</SaleOrExchangeWithDsqflyPerson>
        <BorrowOrLendWithDsqflyPerson>false</BorrowOrLendWithDsqflyPerson>
        <FurnishedGoodsWithDsqflyPerson>false</FurnishedGoodsWithDsqflyPerson>
        <PayCompensationToDsqflyPerson>false</PayCompensationToDsqflyPerson>
        <TransferAssetsToDsqflyPerson>false</TransferAssetsToDsqflyPerson>
        <PaymentToGovernmentOffical>false</PaymentToGovernmentOffical>
        <UncorrectedPriorActs>false</UncorrectedPriorActs>
        <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>CHARLES E THOMPSON JR</PersonName>
          <USAddress>
            <AddressLine1>314 S 11TH ST</AddressLine1>
            <City>MCALLEN</City>
            <State>TX</State>
            <ZIPCode>78501</ZIPCode>
          </USAddress>
          <Title>PRESIDENT</Title>
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          <Compensation>0</Compensation>
          <ContriToEmplBenefitPlansEtc>0</ContriToEmplBenefitPlansEtc>
          <ExpenseAccountOtherAllowances>0</ExpenseAccountOtherAllowances>
        </OfcrDirTrusteesOrKeyEmployee>
        <OfcrDirTrusteesOrKeyEmployee>
          <PersonName>JONATHAN BEVIL</PersonName>
          <USAddress>
            <AddressLine1>314 S 11TH ST</AddressLine1>
            <City>MCALLEN</City>
            <State>TX</State>
            <ZIPCode>78501</ZIPCode>
          </USAddress>
          <Title>VICE PRESIDENT</Title>
          <AvgHoursPerWkDevotedToPosition>1.00</AvgHoursPerWkDevotedToPosition>
          <Compensation>0</Compensation>
          <ContriToEmplBenefitPlansEtc>0</ContriToEmplBenefitPlansEtc>
          <ExpenseAccountOtherAllowances>0</ExpenseAccountOtherAllowances>
        </OfcrDirTrusteesOrKeyEmployee>
        <OfcrDirTrusteesOrKeyEmployee>
          <PersonName>MARLA LUCE</PersonName>
          <USAddress>
            <AddressLine1>314 S 11TH ST</AddressLine1>
            <City>MCALLEN</City>
            <State>TX</State>
            <ZIPCode>78501</ZIPCode>
          </USAddress>
          <Title>SECRETARY</Title>
          <AvgHoursPerWkDevotedToPosition>1.00</AvgHoursPerWkDevotedToPosition>
          <Compensation>0</Compensation>
          <ContriToEmplBenefitPlansEtc>0</ContriToEmplBenefitPlansEtc>
          <ExpenseAccountOtherAllowances>0</ExpenseAccountOtherAllowances>
        </OfcrDirTrusteesOrKeyEmployee>
        <CompOfHighestPaidEmplNONE>NONE</CompOfHighestPaidEmplNONE>
        <TotNumberOfOthEmplPaidOver50k>0</TotNumberOfOthEmplPaidOver50k>
        <CompOfHghstPaidCntrctNONE>NONE</CompOfHghstPaidCntrctNONE>
        <TotNumberOfCntrctPaidOver50k>0</TotNumberOfCntrctPaidOver50k>
      </OfcrDirTrusteesKeyEmployeeInfo>
      <MinimumInvestmentReturn>
        <AvgMonthlyFMVOfSecurities>1712436</AvgMonthlyFMVOfSecurities>
        <AvgMonthlyCashBalances>1272905</AvgMonthlyCashBalances>
        <FMVAllOtherNoncharitableAssets>0</FMVAllOtherNoncharitableAssets>
        <TotalFMVOfUnusedAssets>2985341</TotalFMVOfUnusedAssets>
        <AdjTotalFMVOfUnusedAssets>2985341</AdjTotalFMVOfUnusedAssets>
        <CashDeemedCharitable>44780</CashDeemedCharitable>
        <NetNoncharitableAssets>2940561</NetNoncharitableAssets>
        <MinimumInvestmentReturn>147028</MinimumInvestmentReturn>
      </MinimumInvestmentReturn>
      <DistributableAmount>
        <MinimumInvestmentReturn>147028</MinimumInvestmentReturn>
        <TaxBasedOnInvestmentIncome>1244</TaxBasedOnInvestmentIncome>
        <TotalTax>1244</TotalTax>
        <DistributableAmountBeforeAdj>145784</DistributableAmountBeforeAdj>
        <DistributableAmountBeforeDed>145784</DistributableAmountBeforeDed>
        <DistributableAmountAsAdjusted>145784</DistributableAmountAsAdjusted>
      </DistributableAmount>
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        <QualifyingDistributions>138018</QualifyingDistributions>
        <OnePctSect4940eOrgNetInvstIncm>1244</OnePctSect4940eOrgNetInvstIncm>
        <AdjQualifyingDistributions>136774</AdjQualifyingDistributions>
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      <UndistributedIncome>
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        <AppliedToCurrentYear>1336</AppliedToCurrentYear>
        <UndistributedIncomeCY>144448</UndistributedIncomeCY>
      </UndistributedIncome>
      <SupplementaryInformation>
        <ContributingManager>CHARLES E THOMPSON JR</ContributingManager>
        <ShareholderManager>NONE</ShareholderManager>
        <OnlyContributesToPreselected>X</OnlyContributesToPreselected>
        <AppicationSubmissionInfo>
          <RecipientName>CHARLES E THOMPSON</RecipientName>
          <RecipientUSAddress>
            <AddressLine1>314 S 11TH STREET</AddressLine1>
            <City>MCALLEN</City>
            <State>TX</State>
            <ZIPCode>78501</ZIPCode>
          </RecipientUSAddress>
          <RecipientPhoneNumber>9566885757</RecipientPhoneNumber>
          <FormAndInfoAndMaterials>N/A</FormAndInfoAndMaterials>
          <SubmissionDeadlines>NONE</SubmissionDeadlines>
          <RestrictionsOnAwards>NONE</RestrictionsOnAwards>
        </AppicationSubmissionInfo>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>TEXAS MILITARY UBSTITUTE</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>20955 TEJAS TRAIL</AddressLine1>
            <City>SAN ANTONIO</City>
            <State>TX</State>
            <ZIPCode>78257</ZIPCode>
          </RecipientUSAddress>
          <RecipientFoundationStatus>EXEMPT</RecipientFoundationStatus>
          <PurposeOfGrantOrContribution>CHARITABLE</PurposeOfGrantOrContribution>
          <Amount>15000</Amount>
        </GrantOrContriPaidDuringYear>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>SAN ANTONIO AREA FOUNDATION</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>20955 TEJAS TRAIL</AddressLine1>
            <City>SAN ANTONIO</City>
            <State>TX</State>
            <ZIPCode>78257</ZIPCode>
          </RecipientUSAddress>
          <RecipientFoundationStatus>EXEMPT</RecipientFoundationStatus>
          <PurposeOfGrantOrContribution>CHARITABLE</PurposeOfGrantOrContribution>
          <Amount>112900</Amount>
        </GrantOrContriPaidDuringYear>
        <GrantOrContriPaidDuringYear>
          <RecipientBusinessName>
            <BusinessNameLine1>EPISCOPAL DIOCESE OF WEST TEXAS</BusinessNameLine1>
          </RecipientBusinessName>
          <RecipientUSAddress>
            <AddressLine1>P O BOX 6685</AddressLine1>
            <City>SAN ANTONIO</City>
            <State>TX</State>
            <ZIPCode>78209</ZIPCode>
          </RecipientUSAddress>
          <RecipientFoundationStatus>EXEMPT</RecipientFoundationStatus>
          <PurposeOfGrantOrContribution>GENERAL FUND</PurposeOfGrantOrContribution>
          <Amount>10000</Amount>
        </GrantOrContriPaidDuringYear>
        <TotGrantOrContriPaidDuringYear>137900</TotGrantOrContriPaidDuringYear>
      </SupplementaryInformation>
      <AnalysisIncomeProducingActy>
        <IntOnSavingsAndTempCashInvst>
          <ExclusionCode>14</ExclusionCode>
          <ExclusionAmount>3638</ExclusionAmount>
        </IntOnSavingsAndTempCashInvst>
        <DividendsAndIntFromSecPartVII>
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      <GeneralExplanation>
        <Identifier>AMENDED RETURN</Identifier>
        <Explanation>THE ORIGINAL RETURN REPORTED $ 10,000 CONTRIBUTIONS. THE CORRECT RETURN REPORTS A CONTRIBUTION OF $ 110,000 THE ADDITIONAL CONTRIBUTION WAS MIS CONSTRUED AS AN INVESTMENT</Explanation>
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        <Description>prior period adjustment</Description>
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      <OtherNotesLoansRcvblLong>
        <BorrowersName>
          <Business>
            <BusinessNameLine1>KVS FAMILY LIMITRED PARTNERSHIP</BusinessNameLine1>
          </Business>
        </BorrowersName>
        <RelationshipToInsider>NONE</RelationshipToInsider>
        <OriginalAmountOfLoan>874744</OriginalAmountOfLoan>
        <BalanceDue>874744</BalanceDue>
        <DateOfNote>2010-09</DateOfNote>
        <MaturityDate>2012-03</MaturityDate>
        <RepaymentTerms>DUE MARCH 30 2012</RepaymentTerms>
        <InterestRate>0.07500000</InterestRate>
        <SecurityProvidedByBorrower>14.73 ACRES, HIDALGO CNTY TEXAS</SecurityProvidedByBorrower>
        <PurposeOfLoan>PURCHASE REAL ESTATE</PurposeOfLoan>
        <DescOfLenderConsideration>,CASH</DescOfLenderConsideration>
        <ConsiderationFmv>874744</ConsiderationFmv>
      </OtherNotesLoansRcvblLong>
      <OtherNotesLoansRcvblLong>
        <BorrowersName>
          <Business>
            <BusinessNameLine1>KVS FAMILY LIMITED PARTNERSHIP</BusinessNameLine1>
          </Business>
        </BorrowersName>
        <RelationshipToInsider>NONE</RelationshipToInsider>
        <OriginalAmountOfLoan>990000</OriginalAmountOfLoan>
        <BalanceDue>990000</BalanceDue>
        <DateOfNote>2011-01</DateOfNote>
        <MaturityDate>2013-01</MaturityDate>
        <RepaymentTerms>DUE 01/31/2013</RepaymentTerms>
        <InterestRate>0.07500000</InterestRate>
        <SecurityProvidedByBorrower>15.21 ACRES HIDALGO CNTY TEXAS</SecurityProvidedByBorrower>
        <PurposeOfLoan>PURCHASE REAL ESTATE</PurposeOfLoan>
        <DescOfLenderConsideration>CASH</DescOfLenderConsideration>
        <ConsiderationFmv>990000</ConsiderationFmv>
      </OtherNotesLoansRcvblLong>
    </OtherNotesLoansRcvblLongSch>
    <TaxesSchedule documentId="00000005">
      <Taxes>
        <Category>FEDERAL INCOME TAX</Category>
        <Amount>100</Amount>
      </Taxes>
    </TaxesSchedule>
  </ReturnData>
</Return>