﻿<?xml version="1.0" encoding="utf-8"?>
<Return xmlns="http://www.irs.gov/efile" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" returnVersion="2012v2.3">
  <ReturnHeader binaryAttachmentCount="0">
    <Timestamp>2013-11-15T19:20:43-06:00</Timestamp>
    <TaxPeriodEndDate>2012-12-31</TaxPeriodEndDate>
    <PreparerFirm>
      <PreparerFirmBusinessName>
        <BusinessNameLine1>ELLEN JESSE CPA</BusinessNameLine1>
      </PreparerFirmBusinessName>
      <PreparerFirmUSAddress>
        <AddressLine1>10561 13TH AVE NW</AddressLine1>
        <City>SEATTLE</City>
        <State>WA</State>
        <ZIPCode>981775227</ZIPCode>
      </PreparerFirmUSAddress>
    </PreparerFirm>
    <ReturnType>990EZ</ReturnType>
    <TaxPeriodBeginDate>2012-01-01</TaxPeriodBeginDate>
    <Filer>
      <EIN>263165486</EIN>
      <Name>
        <BusinessNameLine1>TWO CRANES INSTITUTE</BusinessNameLine1>
      </Name>
      <NameControl>TWOC</NameControl>
      <Phone>2065240228</Phone>
      <USAddress>
        <AddressLine1>8512 20TH AVENUE NE</AddressLine1>
        <City>SEATTLE</City>
        <State>WA</State>
        <ZIPCode>98115</ZIPCode>
      </USAddress>
    </Filer>
    <Officer>
      <Name>KIMBERLY RICHARDSON</Name>
      <Title>EXECUTIVE DIRECTOR</Title>
      <Phone>2065240228</Phone>
      <DateSigned>2013-11-15</DateSigned>
      <AuthorizeThirdParty>true</AuthorizeThirdParty>
    </Officer>
    <Preparer>
      <Name>ELLEN JESSE</Name>
      <Phone>2063632120</Phone>
      <DatePrepared>2013-11-15</DatePrepared>
      <SelfEmployed>X</SelfEmployed>
    </Preparer>
    <TaxYear>2012</TaxYear>
    <BuildTS>2016-03-07 17:11:31Z</BuildTS>
  </ReturnHeader>
  <ReturnData documentCount="4">
    <IRS990EZ documentId="RetDoc4" referenceDocumentId="RetDoc3">
      <MethodOfAccountingAccrual>X</MethodOfAccountingAccrual>
      <ScheduleBNotRequired>X</ScheduleBNotRequired>
      <WebSite>WWW.TWOCRANESINSTITUTE.COM</WebSite>
      <Organization501c3 referenceDocumentId="RetDoc2">X</Organization501c3>
      <GrossReceiptsLessThan25000>X</GrossReceiptsLessThan25000>
      <GrossReceipts>7513</GrossReceipts>
      <InfoInScheduleOPartI>X</InfoInScheduleOPartI>
      <ContributionsGiftsGrantsEtc>1820</ContributionsGiftsGrantsEtc>
      <ProgramServiceRevenue>5693</ProgramServiceRevenue>
      <TotalRevenue>7513</TotalRevenue>
      <FeesAndOthPymtToIndContractors>6340</FeesAndOthPymtToIndContractors>
      <OtherExpensesTotal>3963</OtherExpensesTotal>
      <TotalExpenses>10303</TotalExpenses>
      <ExcessOrDeficitForYear>-2790</ExcessOrDeficitForYear>
      <NetAssetsOrFundBalancesBOY>5691</NetAssetsOrFundBalancesBOY>
      <NetAssetsOrFundBalancesEOY>2901</NetAssetsOrFundBalancesEOY>
      <InfoInScheduleOPartII>X</InfoInScheduleOPartII>
      <CashSavingsAndInvestments>
        <BOY>4632</BOY>
        <EOY>2589</EOY>
      </CashSavingsAndInvestments>
      <OtherAssetsTotal>
        <BOY>1059</BOY>
        <EOY>312</EOY>
      </OtherAssetsTotal>
      <TotalAssets>
        <BOY>5691</BOY>
        <EOY>2901</EOY>
      </TotalAssets>
      <NetAssetsOrFundBalances>
        <BOY>5691</BOY>
        <EOY>2901</EOY>
      </NetAssetsOrFundBalances>
      <InfoInScheduleOPartIII>X</InfoInScheduleOPartIII>
      <PrimaryExemptPurpose>TO PROVIDE EDUCATION PROGRAMS FOR CHILDREN, TEENS AND ADULTS THAT PROMOTE NONVIOLENCE AND CULTIVATE PEACEFUL SOLUTIONS TO CONFLICT.</PrimaryExemptPurpose>
      <ProgramServiceAccomplishment>
        <DescriptionProgramServiceAccom>YOUTH PROGRAMS - PROVIDE AIKIDO-BASED MOVEMENT CLASSES THAT TEACH SELF-AWARENESS, SELF-DISCIPLINE, RESILIENCE, AND PROMOTE PEACEFUL SOLUTIONS TO CONFLICT. CLASSES WERE HELD AT JANE ADDAMS K-8, A SEATTLE PUBLIC SCHOOL, IN THREE 8-10 WEEK SESSIONS, CONTAINING 68 STUDENTS GRADES K-5. TCI TEACHES A PRE-SKILLS AIKIDO MOVEMENT CLASS FOR 4 YR OLDS ONCE/WEEK AT THE EXPERIMENTAL EDUCATION UNIT AT UNIVERSITY OF WASHINGTON. THIS PROGRAM ENCOURAGES THE DEVELOPMENT OF CHILDREN'S COGNITIVE, COMMUNICATION, AND SOCIAL INTERACTION SKILLS BY MEANS OF EDUCATIONAL AND THERAPEUTIC INTERVENTIONS MOST APPROPRIATE FOR EACH CHILD. THE PROGRAM INCLUDES CHILDREN WITH VARIOUS DEVELOPMENTAL DELAYS OR DISABILITIES. TCI'S GOAL IS TO PROMOTE THE DEVELOPMENT OF THE CHILDREN'S SOCIAL/EMOTIONAL, COGNITIVE, AND MOTOR SKILLS USING AIKIDO PRACTICES AND PRINCIPLES.</DescriptionProgramServiceAccom>
        <ProgramServiceExpenses>7709</ProgramServiceExpenses>
      </ProgramServiceAccomplishment>
      <ProgramServiceAccomplishment>
        <DescriptionProgramServiceAccom>LEADERSHIP PROGRAMS - PROVIDE ADULT AND TEEN TRAINING TO ENCOURAGE LEADERS TO EMBODY PRAGMATIC WISDOM, SKILLFUL ACTION, AND GROUNDED COMPASSION. THE LEADERSHIP SESSIONS CULTIVATE LEADERS WHO WILL PROVIDE EDUCATIONAL PROGRAMS PROMOTING NON-VIOLENCE AND PEACEFUL SOLUTIONS TO CONFLICT. YOUTH PROGRAMS WERE THE PRIMARY FOCUS IN 2012 WHILE TWO CRANES INSTITUTE EXPLORED POTENTIAL PARTNERSHIPS FOR THE LEADERSHIP PROGRAM. LEADERSHIP SESSIONS ARE SCHEDULED BEGINNING IN JANUARY OF 2013.</DescriptionProgramServiceAccom>
        <ProgramServiceExpenses>631</ProgramServiceExpenses>
      </ProgramServiceAccomplishment>
      <TotalProgramServiceExpenses>8340</TotalProgramServiceExpenses>
      <OfficerDirectorTrusteeKeyEmpl>
        <PersonName referenceDocumentId="RetDoc1">SUSAN ADAMS</PersonName>
        <Title>BOARD PRESID</Title>
        <AvgHoursPerWkDevotedToPosition>15.00</AvgHoursPerWkDevotedToPosition>
        <Compensation>0</Compensation>
      </OfficerDirectorTrusteeKeyEmpl>
      <OfficerDirectorTrusteeKeyEmpl>
        <PersonName referenceDocumentId="RetDoc1">MICHELE BUCY</PersonName>
        <Title>BOARD SECRET</Title>
        <AvgHoursPerWkDevotedToPosition>1.00</AvgHoursPerWkDevotedToPosition>
        <Compensation>0</Compensation>
      </OfficerDirectorTrusteeKeyEmpl>
      <OfficerDirectorTrusteeKeyEmpl>
        <PersonName referenceDocumentId="RetDoc1">DAN MURNAN</PersonName>
        <Title>BOARD TREASU</Title>
        <AvgHoursPerWkDevotedToPosition>5.00</AvgHoursPerWkDevotedToPosition>
        <Compensation>0</Compensation>
      </OfficerDirectorTrusteeKeyEmpl>
      <OfficerDirectorTrusteeKeyEmpl>
        <PersonName referenceDocumentId="RetDoc1">CHRISTOPHER LEE</PersonName>
        <Title>BOARD MEMBER</Title>
        <AvgHoursPerWkDevotedToPosition>5.00</AvgHoursPerWkDevotedToPosition>
        <Compensation>0</Compensation>
      </OfficerDirectorTrusteeKeyEmpl>
      <OfficerDirectorTrusteeKeyEmpl>
        <PersonName referenceDocumentId="RetDoc1">DAN MCABEE</PersonName>
        <Title>BOARD MEMBER</Title>
        <AvgHoursPerWkDevotedToPosition>5.00</AvgHoursPerWkDevotedToPosition>
        <Compensation>0</Compensation>
      </OfficerDirectorTrusteeKeyEmpl>
      <OfficerDirectorTrusteeKeyEmpl>
        <PersonName referenceDocumentId="RetDoc1">KIMBERLY RICHARDSON</PersonName>
        <Title>BOARD MEMBER</Title>
        <AvgHoursPerWkDevotedToPosition>15.00</AvgHoursPerWkDevotedToPosition>
        <Compensation>0</Compensation>
      </OfficerDirectorTrusteeKeyEmpl>
      <ActivitiesNotPreviouslyRpt>false</ActivitiesNotPreviouslyRpt>
      <MadeChangesToOrgnzngEtcDoc>false</MadeChangesToOrgnzngEtcDoc>
      <OrganizationHadUBI>false</OrganizationHadUBI>
      <SubjectToProxyTax>false</SubjectToProxyTax>
      <OrganizationDissolvedEtc>false</OrganizationDissolvedEtc>
      <DidOrgFileForm1120POLThisYear>false</DidOrgFileForm1120POLThisYear>
      <MadeLoansToFromOfficers>false</MadeLoansToFromOfficers>
      <EngagedInExcessBenefitTrans>false</EngagedInExcessBenefitTrans>
      <ProhibitedTaxShelterTrans>false</ProhibitedTaxShelterTrans>
      <TheBooksAreInCareOf>
        <NamePerson>KIMBERLY RICHARDSON</NamePerson>
        <AddressUS>
          <AddressLine1>8512 20TH AVENUE NE</AddressLine1>
          <City>SEATTLE</City>
          <State>WA</State>
          <ZIPCode>98115</ZIPCode>
        </AddressUS>
        <TelephoneNumber>2065240228</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>
      <FiledScheduleA>true</FiledScheduleA>
    </IRS990EZ>
    <IRS990ScheduleA documentId="RetDoc2">
      <PubliclySupportedOrg509a2>X</PubliclySupportedOrg509a2>
      <GiftsGrantsContribReceived509>
        <CurrentTaxYearMinus2Years>500</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>6485</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>1820</CurrentTaxYear>
        <Total>8805</Total>
      </GiftsGrantsContribReceived509>
      <GrossReceiptsFromAdmissions>
        <CurrentTaxYearMinus4Years>700</CurrentTaxYearMinus4Years>
        <CurrentTaxYearMinus3Years>6714</CurrentTaxYearMinus3Years>
        <CurrentTaxYearMinus2Years>2434</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>14651</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>5693</CurrentTaxYear>
        <Total>30192</Total>
      </GrossReceiptsFromAdmissions>
      <Total509>
        <CurrentTaxYearMinus4Years>700</CurrentTaxYearMinus4Years>
        <CurrentTaxYearMinus3Years>6714</CurrentTaxYearMinus3Years>
        <CurrentTaxYearMinus2Years>2934</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>21136</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>7513</CurrentTaxYear>
        <Total>38997</Total>
      </Total509>
      <PublicSupportTotal509>38997</PublicSupportTotal509>
      <TotalSupportTotal>
        <CurrentTaxYearMinus4Years>700</CurrentTaxYearMinus4Years>
        <CurrentTaxYearMinus3Years>6714</CurrentTaxYearMinus3Years>
        <CurrentTaxYearMinus2Years>2934</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>21136</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>7513</CurrentTaxYear>
        <Total>38997</Total>
      </TotalSupportTotal>
      <First5Years509>X</First5Years509>
    </IRS990ScheduleA>
    <IRS990ScheduleO documentId="RetDoc3">
      <GeneralExplanation>
        <Identifier>OTHER EXPENSES</Identifier>
        <ReturnReference>FORM 990-EZ, PART I, LINE 16</ReturnReference>
        <Explanation>EXPENSES MARKETING 1,009 OFFICE SUPPLIES 16 WEBSITE EXPENSES 181 DIRECTORS&amp; OFFICERS INSURANCE 873 LIABILITY INSURANCE 809 LICENSES AND PERMITS 50 TELEPHONE 857 MEETING EXPENSE-MEALS 144 BANK SERVICE CHARGES 24 TOTAL 3,963</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>OTHER ASSETS</Identifier>
        <ReturnReference>FORM 990-EZ, PART II, LINE 24</ReturnReference>
        <Explanation>PREPAID EXPENSES AND DEFERRED CHARGES 1,059 312 TOTAL 1,059 312</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>PRIMARY EXEMPT PURPOSE</Identifier>
        <ReturnReference>FORM 990-EZ, PART III</ReturnReference>
        <Explanation>TO PROVIDE EDUCATION PROGRAMS FOR CHILDREN, TEENS AND ADULTS THAT PROMOTE NONVIOLENCE AND CULTIVATE PEACEFUL SOLUTIONS TO CONFLICT.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>FIRST ACCOMPLISHMENT</Identifier>
        <ReturnReference>FORM 990-EZ, PART III, LINE 28</ReturnReference>
        <Explanation>YOUTH PROGRAMS - PROVIDE AIKIDO-BASED MOVEMENT CLASSES THAT TEACH SELF-AWARENESS, SELF-DISCIPLINE, RESILIENCE, AND PROMOTE PEACEFUL SOLUTIONS TO CONFLICT. CLASSES WERE HELD AT JANE ADDAMS K-8, A SEATTLE PUBLIC SCHOOL, IN THREE 8-10 WEEK SESSIONS, CONTAINING 68 STUDENTS GRADES K-5. TCI TEACHES A PRE-SKILLS AIKIDO MOVEMENT CLASS FOR 4 YR OLDS ONCE/WEEK AT THE EXPERIMENTAL EDUCATION UNIT AT UNIVERSITY OF WASHINGTON. THIS PROGRAM ENCOURAGES THE DEVELOPMENT OF CHILDREN'S COGNITIVE, COMMUNICATION, AND SOCIAL INTERACTION SKILLS BY MEANS OF EDUCATIONAL AND THERAPEUTIC INTERVENTIONS MOST APPROPRIATE FOR EACH CHILD. THE PROGRAM INCLUDES CHILDREN WITH VARIOUS DEVELOPMENTAL DELAYS OR DISABILITIES. TCI'S GOAL IS TO PROMOTE THE DEVELOPMENT OF THE CHILDREN'S SOCIAL/EMOTIONAL, COGNITIVE, AND MOTOR SKILLS USING AIKIDO PRACTICES AND PRINCIPLES.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>SECOND ACCOMPLISHMENT</Identifier>
        <ReturnReference>FORM 990-EZ, PART III, LINE 29</ReturnReference>
        <Explanation>LEADERSHIP PROGRAMS - PROVIDE ADULT AND TEEN TRAINING TO ENCOURAGE LEADERS TO EMBODY PRAGMATIC WISDOM, SKILLFUL ACTION, AND GROUNDED COMPASSION. THE LEADERSHIP SESSIONS CULTIVATE LEADERS WHO WILL PROVIDE EDUCATIONAL PROGRAMS PROMOTING NON-VIOLENCE AND PEACEFUL SOLUTIONS TO CONFLICT. YOUTH PROGRAMS WERE THE PRIMARY FOCUS IN 2012 WHILE TWO CRANES INSTITUTE EXPLORED POTENTIAL PARTNERSHIPS FOR THE LEADERSHIP PROGRAM. LEADERSHIP SESSIONS ARE SCHEDULED BEGINNING IN JANUARY OF 2013.</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
    <CompensationExplanation documentId="RetDoc1">
      <Compensation>
        <PersonName>SUSAN ADAMS</PersonName>
      </Compensation>
      <Compensation>
        <PersonName>MICHELE BUCY</PersonName>
      </Compensation>
      <Compensation>
        <PersonName>DAN MURNAN</PersonName>
      </Compensation>
      <Compensation>
        <PersonName>CHRISTOPHER LEE</PersonName>
      </Compensation>
      <Compensation>
        <PersonName>DAN MCABEE</PersonName>
      </Compensation>
      <Compensation>
        <PersonName>KIMBERLY RICHARDSON</PersonName>
      </Compensation>
    </CompensationExplanation>
  </ReturnData>
</Return>