U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   Form 10-QSB

                                   (Mark One)

               X...Quarterly  report under section 13 or 15(d) of the
                                   Securities
                 Exchange Act of 1934 for the quarterly period ended
                               February 28, 2002.

               ....Transition report under section 13 or 15(d) of the
                                   Securities
             Exchange Act of 1934 [No Fee Required] for the transition
                                     period
                          from _________ to _________.

                           Commission File No: 0-21951

                         THE HERITAGE ORGANIZATION, INC.
                     (Name of small business in its charter)

             Colorado                                          84-1356383
      (State or other                              (IRS Employer Id. No.)
      jurisdiction of Incorporation)

                 5001 Spring Valley Road, Suite 800, East Tower
                               Dallas, Texas 75244
                     (Address of Principal Office) Zip Code

                    Issuer's telephone number: (972) 991-0001

                            Buffalo Capital III, Ltd.
                         (former name of small business)

          Check whether the issuer (1) filed all reports required to be filed by
          Section 13 or 15(d) of the Securities Exchange Act during the past 12
          months (or for such shorter period that the registrant was required to
          file such reports), and (2) has been subject to such filing
          requirements for the past 90 days. Yes ..X.. No ....

          Applicable only to issuers involved in bankruptcy proceedings during
          the past five years.

          Check whether the issuer has filed all documents and reports required
          to be filed by Section 12, 13 or 15(d) of the Exchange Act after the
          distribution of securities under a plan confirmed by a court.
          Yes ..... No .....

          Applicable only to corporate issuers

          State the number of shares outstanding of each of the issuer's classes
          of common equity, as of the latest practicable date. At February 28,
          2002, the following shares of common were outstanding: Common Stock,
          no par value, 14,000,000 shares.

          Transitional Small Business Disclosure Format (Check one):
          Yes ..... No ..X..

<PAGE>




PART 1 - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS AND EXHIBITS

     (a) The unaudited financial statements of registrant for the three months
ended February 28, 2002, follow. The financial statements reflect all
adjustments which are, in the opinion of management, necessary to a fair
statement of the results for the interim period presented.




                         THE HERITAGE ORGANIZATION, INC.
                          (A Development Stage Company)
                              FINANCIAL STATEMENTS



                       Quarter Ended February 28, 2002 THE
                           HERITAGE ORGANIZATION, INC.
                          (A Development Stage Company)



         Balance Sheet                                    F-1
         Statement Operations                             F-2
         Statements of Cash Flows                         F-3
         Notes to Financial Statements                    F-4

<PAGE>




                         THE HERITAGE ORGANIZATION, INC.
                          (A Development Stage Company)
                                  BALANCE SHEET
                                February 28, 2002
                                   (unaudited)


 ASSETS
CURRENT ASSETS:
   Cash                                    $     375
                                           ----------

   Total Current Assets                          375
                                           ----------

   Total Assets                            $     375
                                           ==========

 LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES
   Notes payable - related party           $  13,000
   Accrued Interest                              412
                                           ----------

   TOTAL CURRENT LIABILITIES               $  13,412
                                           ==========

STOCKHOLDERS' DEFICIT
   Preferred stock, no par value
     10,000,000 shares authorized;
     no shares issued and outstanding              0
   Common stock, no par value;
     100,000,000 shares authorized;
     14,000,000 shares issued and,
     outstanding                               8,500
Additional paid-in capital                    81,909
Deficit accumulated during the
 development stage                          (103,446)
                                           ----------

                                             (13,037)

   TOTAL LIABILITIES AND
   STOCKHOLDERS' DEFICIT                   $     375
                                           ==========



              The accompanying notes are an integral part of these
                              financial statements.

<PAGE>




                         THE HERITAGE ORGANIZATION, INC.
                          (A Development Stage Company)
                            STATEMENTS OF OPERATIONS
                                   Page 1 of 2


                         Period from     For the         For the
                         Inception       three months    three months
                         (8/28/1996)     ended           ended
                         to 02/28/2002   02/28/2002      02/28/2001

REVENUE                   $        5     $         -     $         5
                          ----------     -----------     -----------

EXPENSES
Amortization                     300               -               -
Bank charges                     103               -               -
Consulting Fees               62,800               -               -
Directors' fees                  200               -               -
Interest expense               2,072             245             145
Filing fee                       205               -               -
Legal & Professional          31,917           1,075             872
Office expense                 2,554               -               -
Rent                           3,300             150             150
                          ----------     -----------     -----------

TOTAL EXPENSES               103,451           1,470           1,167
                          ----------     -----------     -----------

NET LOSS                    (103,446)         (1,470)         (1,162)

Accumulated deficit
 Balance,
 beginning of period               -        (101,976)        (96,659)
                          ----------     -----------     -----------
 Balance,
 end of period            $ (103,446)    $  (103,446)    $   (97,821)
                          ----------     -----------     -----------
NET LOSS PER SHARE        $    (0.01)    $     (0.00)    $     (0.00)

WEIGHTED AVERAGE
NUMBER OF SHARES
OUTSTANDING                7,510,956      14,000,000      14,000,000



              The accompanying notes are an integral part of these
                             financial statements.



<PAGE>




                         THE HERITAGE ORGANIZATION, INC.
                          (A Development Stage Company)
                            STATEMENTS OF OPERATIONS
                                   Page 2 of 2


                            For the         For the
                          nine months      nine months
                             ended            ended
                          02/28/2002       02/28/2001

REVENUE                   $        -     $         5
                          ----------     -----------

EXPENSES
Amortization                       -               -
Bank charges                       -               -
Consulting Fees                    -               -
Directors' fees                    -               -
Interest expense                 811             417
Filing fee                         -              25
Legal & Professional           3,260           3,350
Office expense                     -               -
Rent                             450             450
                          ----------     -----------

TOTAL EXPENSES                 4,521           4,242
                          ----------     -----------

NET LOSS                      (4,521)         (4,237)

Accumulated deficit
 Balance,
 beginning of period         (98,925)        (93,584)
                          ----------     -----------
 Balance,
 end of period            $ (103,446)    $   (97,821)
                          ----------     -----------
NET LOSS
 PER SHARE                $    (0.00)    $     (0.00)
                          ----------     -----------

WEIGHTED AVERAGE
NUMBER OF SHARES
OUTSTANDING               14,000,000      14,000,000
                          ----------     -----------



              The accompanying notes are an integral part of these
                              financial statements.


<PAGE>




<TABLE>
<CAPTION>
                         THE HERITAGE ORGANIZATION, INC.
                          (A Development Stage Company)
                            STATEMENTS OF CASH FLOWS

                                                                   For the          For the
                                              Period from            Nine             Nine
                                               Inception            months           months
                                              (8/28/1996)            ended            ended
                                             to 02/28/2002        02/28/2002       02/28/2001

CASH FLOWS FROM OPERATING ACTIVITIES:

<S>                                          <C>                  <C>              <C>
NET LOSS                                         (103,446)           (4,521)          (4,237)

Adjustments to reconcile net loss to
net cash used by operating activities:

Amortization                                           300                -                -
Rent Expense                                         3,300              450              450
Expenses paid
 by shareholders                                    15,609                -                -
Stock issued for
 directors' fees                                    59,960                -                -
Stock issued for
 consulting fees                                     3,040                -                -
Increase in Accounts
 Payable                                                 -               (6)             844
Increase (decrease) in
 Accrued interest                                      412             (339)             (86)
                                             --------------       ----------       ----------

Net cash flows
 from operating
 activities                                        (20,825)          (4,416)          (3,029)

CASH FLOWS FROM INVESTING ACTIVITIES:

Organization costs                                    (300)               -                -
                                             --------------       ----------       ----------

Net cash flows
 from investing
 activities                                           (300)               -                -

CASH FLOWS FROM FINANCING ACTIVITIES:

Issuance of
  common stock                                       8,500                -                -
Notes payable -
  Related party                                     13,000            3,000            5,000
                                             --------------       ----------       ----------

Net cash flows
from financing
activities                                          21,500            3,000            5,000
                                             --------------       ----------       ----------

Net increase
 (decrease)in cash                                     375           (1,416)           1,971

Cash, Beginning of Period                                -            1,791            1,216
                                             --------------       ----------       ----------

Cash, End of Period                          $         375        $     375        $   3,187
                                             --------------       ----------       ----------
</TABLE>


              The accompanying notes are an integral part of these
                              financial statements.

<PAGE>




                         THE HERITAGE ORGANIZATION, INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                                February 28, 2002


NOTE 1.  Management's Representation of Interim Financial Information

The accompanying financial statements have been prepared by The Heritage
Organization, Inc. without audit pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted as allowed by such
rules and regulations, and management believes that the disclosures are adequate
to make the information presented not misleading. These financial statements
include all of the adjustments, which in the opinion of management, are
necessary to a fair presentation of financial position and results of
operations. All such adjustments are of a normal and recurring nature. These
financial statements should be read in conjunction with the audited financial
statements at May 31, 2001.


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Liquidity and Capital Resources.

The Company remains in the development stage, and since inception, has
experienced no significant change in liquidity or capital resources or
stockholders' equity other than the receipt of net proceeds in the amount of
$8,500 from its inside capitalization funds, and $13,000 as a loan from a
principal shareholder. Consequently, the Company's balance sheet for the quarter
ended February 28, 2002, reflects a total asset value of $375.

     The Company does not have sufficient assets or capital resources to pay its
on-going expenses while it is seeking out business opportunities, and it has no
current plans to raise additional capital through sale of securities, or
otherwise. As a result, although the Company has no agreement in place with its
shareholders or other persons to pay expenses on its behalf, it is currently
anticipated that the Company will rely on loans, if available, from shareholders
or third parties to pay expenses at least until it is able to consummate a
business combination. There is no assurance that the company will have
sufficient assets or capital to pay its ongoing expenses or continue as a going
concern.

Results of Operations.

     During the period from August 28, 1996 (inception) through February 28,
2002, the Company has engaged in no significant operations other than
organizational activities, acquisition of capital and registering its securities
under the Securities and Exchange Act of 1934, as amended. No revenues were
received during this period, and the Company experienced a cumulative net loss
of $103,446.


<PAGE>




     As of the end of its third quarter ending February 28, 2002, the Company
has not been able to reach any agreement or definitive understanding with any
person concerning a business combination transaction between the Company and any
other entity or business. At the present time, no prospects exist for the
potential business combination of the Company and any other entity and none is
presently anticipated.

     The Company intends to continue with its previous business plan to seek,
investigate and possibly acquire one or more properties or businesses. Such an
acquisition may be made by purchase, merger, exchange of stock, or otherwise and
may encompass assets or a business entity, such as a corporation, joint venture,
or partnership. The Company has very limited capital, and it is unlikely that
the Company will be able to take advantage of more than one such business
opportunity. The Company intends to seek opportunities demonstrating the
potential of long-term growth as opposed to short-term earnings.

     The Company experienced a net loss of $1,470 for the third quarter,
compared with a loss of $1,162 for the same quarter of the previous fiscal year.
The loss during the third quarter is primarily the result of legal and
accounting costs related to compliance with reporting requirements of the
securities laws. The Company does not expect to generate any revenue until it
completes a business combination, but it will continue to incur legal and
accounting fees and other costs associated with compliance with its reporting
obligations. As a result, the Company expects that it will continue to incur
losses each quarter at least until it has completed a business combination.
Depending upon the performance of any acquired business, the Company may
continue to operate at a loss even following completion of a business
combination.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

     This report contains various forward-looking statements that are based on
the Company's beliefs as well as assumptions made by and information currently
available to the Company. When used in this report, the words "believe,"
"expect," "anticipate," "estimate" and similar expressions are intended to
identify forward-looking statements. Such statements may include statements
regarding seeking business opportunities, payment of operating expenses, and the
like, and are subject to certain risks, uncertainties and assumptions which
could cause actual results to differ materially from projections or estimates
contained herein. Factors which could cause actual results to differ materially
include, among others, unanticipated delays or difficulties in location of a
suitable business acquisition candidate, unanticipated or unexpected costs and
expenses, competition and changes in market conditions, lack of adequate
management personnel and the like. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those anticipated, estimated or
projected. The Company cautions against placing undue reliance on
forward-looking statements all of which speak only as of the date made.


<PAGE>




PART II

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

     (a)  EXHIBIT 27 - FINANCIAL DATA SCHEDULE
     (b)  There were no reports on Form 8-K filed during the quarter ended
          February 28, 2002.


Signatures

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


THE HERITAGE ORGANIZATION, INC.
(Registrant)


Date:  April 3, 2002



By: /s/ Gary M. Kornman
    --------------------------
    Gary M. Kornman
    Chairman of the Board