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 August 31, 2001.

 ....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 jurisdiction          (IRS Employer Id. No.)
	 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 August 31, 2001, 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 August 31, 2001, 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 August 31, 2001
			THE HERITAGE ORGANIZATION, INC.
			(A Development Stage Company)




Balance Sheet
Statement of Loss and Accumulated Deficit
Statements of Cash Flows
Notes to Financial Statements

<page>
			THE HERITAGE ORGANIZATION, INC.
			(A Development Stage Company)
				BALANCE SHEET
			       August 31, 2001
				(unaudited)


ASSETS


CURRENT ASSETS
     Cash and cash equivalents				$    986
       							--------
	Total current assets				     986
		       					--------
	TOTAL ASSETS					$    986
							========
  	LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
     Accounts Payable					$  1,361
     Notes payable - related party  			  10,000
     Accrued interest - related party			     461
							--------
Total current liabilities				$ 11,822

STOCKHOLDERS' EQUITY
     Preferred stock, no par value, 10,000,000
	shares authorized;no shares issued
	and outstanding					       -

     Common Stock, no par value; 100,000,000
	shares authorized;14,000,000 shares
	issued and outstanding at May 31, 2001.		   8,500

     Additional paid-in capital     		          81,609
     Deficit accumulated during the
	development stage				(100,945)
							---------
Total stockholders' equity				 (10,836)
							---------
	TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 	$    986
							=========



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

<page>

		THE HERITAGE ORGANIZATION, INC.
		 (A Development Stage Company)
	    STATEMENTS OF LOSS AND ACCUMULATED DEFICIT FOR THE
	  THREE MONTHS ENDED AUGUST 31, 2001 AND 2000, AND FOR
	 THE PERIOD FROM AUGUST 28, 1996 THROUGH AUGUST 31, 2001
			(unaudited)


<table>
	
			<c>			  <c>		  <c>
				For the period
				from inception	 	 For the	  For the
				(August 28, 1996)	three months	three months
				     to			  ended		  ended
				August 31, 2001	      August 31, 2001	August 31, 2000
				---------------	       ------------	------------
REVENUES
  Investment Income		$	-		$	-	$	-
				---------		---------	---------

EXPENSES
  Amortization			      300			-	        -
  Bank charges			      103			-		-
  Consulting fees		   62,800			-		-
  Directors' fees		      200			-		-
  Interest expense		      805		      285	      129
  Filing fee		 	      205		        -	       25
  Legal and professional	   31,428		    1,586	      316
  Office expense		    2,554		    	-	        -
  Rent expense 			    2,550		      150	      150
				---------- 		---------- 	----------
	Total expenses		  100,945		    2,021	      620
				---------- 		----------  	----------
NET LOSS			 (100,945)		   (2,021)	     (620)

Accumulated deficit

  Balance, beginning of period		-		  (98,924)	  (93,584)
				----------		----------	----------
  Balance, end of period	$(100,945)		$(100,945)	$ (94,204)
				==========		==========	==========
NET LOSS PER SHARE		$   (0.02)		$   (0.00)	$   (0.00)
				==========		==========	==========
WEIGHTED AVERAGE NUMBER OF
     SHARES OUTSTANDING		 5,087,552		14,000,000	14,000,000
				==========		==========	==========



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

</table>
<page>


  		 THE HERITAGE ORGANIZATION, INC.
		  (A Development Stage Company)
 	STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED
	AUGUST 31, 2001 AND 2000, AND FOR THE PERIOD FROM
	    AUGUST 28, 1996 THROUGH AUGUST 31, 2001
			(unaudited)

<table>
	
						     <c>		<c>		<c>
				 		 	  For the period	 For the	 For the
				 		 	  from inception	three months 	three months
							(August 28, 1996)	  ended		   ended
				  		   	  to August 31,  	August 31, 	 August 31,
				  		     	      2001		  2001		  2000
							----------------	----------	----------

CASH FROM OPERATING ACTIVITIES
   Net loss						$      (100,945)	$   (2,021)	$    (620)
     Adjustments to reconcile
       net loss to net cash
       flows from operating
       activities:
	  Amortization						    300			 -	        -
	  Rent expense					          2,550		       150	      150
	  Expenses paid by shareholders			         15,609			 -		-
	  Stock issued for directors' fees		         59,960			 -		-
	  Stock issued for consulting fees		          3,040		         -              -
	  Increase in accounts payable			          1,361   	     1,355	        -
	  Increase in accounts payable-related party		    264			 -	      214
	  Increase in accrued interest                              647		      (290)	     (371)
							----------------	-----------	----------
	    Net cash flows from operating activities	        (17,214)	      (806)	     (627)

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				 10,000		         -	        -
							----------------	-----------	----------
	    Net cash flows from financing activities		 18,500		         -  		-
							----------------	-----------	----------
NET INCREASE IN CASH AND CASH EQUIVALENTS			    986		      (806)	     (627)

CASH AND CASH EQUIVALENTS,
	BEGINNING OF PERIOD					      -		     1,792	     1,216
							----------------	-----------	----------
CASH AND CASH EQUIVALENTS,
	END OF PERIOD					$           986		$      986	$      589
							================	===========	==========



The accompanying notes are an integral part of the financial statements.
</table>
<page>


			THE HERITAGE ORGANIZATION, INC.
			(A Development Stage Company)
			NOTES TO FINANCIAL STATEMENTS
				August 31, 2001

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 of the United States 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.

<page>

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 $10,000 as a loan from a
principal shareholder.  Consequently, the Company's balance sheet for the
quarter ended August 31, 2001, reflects a total asset value of $986.

	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 August 31,
2001, 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 $100,945.

	As of the end of its first quarter ending August 31, 2001, 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 $2,021 for the first quarter,
compared with a loss of $620 for the same quarter of the previous fiscal year.
The loss during the second 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.

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
		August 31, 2001.


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:  October 22, 2001


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