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    <Timestamp>2012-10-22T17:00:58-07:00</Timestamp>
    <TaxPeriodEndDate>2012-06-30</TaxPeriodEndDate>
    <ReturnType>990</ReturnType>
    <TaxPeriodBeginDate>2011-07-01</TaxPeriodBeginDate>
    <Filer>
      <EIN>262915770</EIN>
      <Name>
        <BusinessNameLine1>CHAPTER TWO INC</BusinessNameLine1>
      </Name>
      <NameControl>CHAP</NameControl>
      <Phone>3237194290</Phone>
      <USAddress>
        <AddressLine1>207 West 74th Street</AddressLine1>
        <City>Los Angeles</City>
        <State>CA</State>
        <ZIPCode>900032009</ZIPCode>
      </USAddress>
    </Filer>
    <Officer>
      <Name>Nusun Singleton</Name>
      <Title>Chief Financial Officer</Title>
      <Phone>6617288937</Phone>
      <DateSigned>2012-07-25</DateSigned>
    </Officer>
    <TaxYear>2011</TaxYear>
    <BuildTS>2016-02-24 21:20:13Z</BuildTS>
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      <NameOfPrincipalOfficerPerson>Jerald R Cavitt</NameOfPrincipalOfficerPerson>
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        <AddressLine1>207 West 74th Street</AddressLine1>
        <City>Los Angeles</City>
        <State>CA</State>
        <ZIPCode>90003</ZIPCode>
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      <StateLegalDomicile>CA</StateLegalDomicile>
      <ActivityOrMissionDescription>CHAPTER T.W.O.'S Mission is to provide healthy alternatives to gang association , juvenile delinquency , young gang related crimes, by providing the residents of our community who are most vulnerable to succumbing to these anti social behaviors with positive alternatives. Working through a network of community agencies and other neighborhood based organizations. We will provide assistance to local communities for the reduction and elimination of gang violence.</ActivityOrMissionDescription>
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      <MissionDescription>CHAPTER T.W.O.'S Mission is to provide healthy alternatives to gang association , juvenile delinquency , young gang related crimes, by providing the residents of our community who are most vulnerable to succumbing to these anti social behaviors with positive alternatives. Working through a network of community agencies and other neighborhood based organizations. We will provide assistance to local communities for the reduction and elimination of gang violence.</MissionDescription>
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      <Description>Chapter Two Inc., provided another year of successful gang remediation and violence prevention services, meeting and superseding contract goals of 25 hard core members exiting gang life and destructive behavior, by assisting 35 young men and women. Gang violence has dropped significantly during the last year and this drop is directly related to the work of Chapter Two Inc., and its team of dedicated crisis intervention workers.</Description>
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        <Revenue>40002</Revenue>
        <Description>Chapter Two Inc., once again successfully assisted in maintaining a violence free summer, through collaboration with other non-profits and local governments to provide Summer Night Lights. Asked to participate agian this year and given an additional park to monitor, Chapter Two Inc., has firmly become the goto agency when it comes to keeping the parks in their neighborhood free from gang violence and other unsavory behavior. This year like the last year so no erruption of violence within the parks making it safe for families and children again.</Description>
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        <Revenue>15960</Revenue>
        <Description>Chapter Two INC., provided safe passages and on campus violence provisions again for the third consecutive year. Elementary and Junior High School children found it much safer to walk to and from school, knowing that a Chapter Two INC., crisis intervention worker was right there, helping to quash rumors, threats, and other precusors to violence prior to it happening. Safe passages was accompanied by mentoring 14 young girls and boys were diverted from gang life and activitiess.</Description>
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        <EOY>0</EOY>
      </DeferredRevenue>
      <TaxExemptBondLiabilities>
        <BOY>0</BOY>
        <EOY>0</EOY>
      </TaxExemptBondLiabilities>
      <EscrowAccountLiability>
        <BOY>0</BOY>
        <EOY>0</EOY>
      </EscrowAccountLiability>
      <LoansFromOfficersDirectors>
        <BOY>0</BOY>
        <EOY>0</EOY>
      </LoansFromOfficersDirectors>
      <MortNotesPyblSecuredInvestProp>
        <BOY>0</BOY>
        <EOY>0</EOY>
      </MortNotesPyblSecuredInvestProp>
      <UnsecuredNotesLoansPayable>
        <BOY>0</BOY>
        <EOY>0</EOY>
      </UnsecuredNotesLoansPayable>
      <TotalLiabilities>
        <BOY>0</BOY>
        <EOY>0</EOY>
      </TotalLiabilities>
      <FollowSFAS117>X</FollowSFAS117>
      <UnrestrictedNetAssets>
        <BOY>100</BOY>
        <EOY>100</EOY>
      </UnrestrictedNetAssets>
      <TemporarilyRestrictedNetAssets>
        <BOY>0</BOY>
        <EOY>15664</EOY>
      </TemporarilyRestrictedNetAssets>
      <PermanentlyRestrictedNetAssets>
        <BOY>0</BOY>
        <EOY>0</EOY>
      </PermanentlyRestrictedNetAssets>
      <TotalNetAssetsFundBalances>
        <BOY>100</BOY>
        <EOY>15764</EOY>
      </TotalNetAssetsFundBalances>
      <TotalLiabNetAssetsFundBalances>
        <BOY>100</BOY>
        <EOY>15764</EOY>
      </TotalLiabNetAssetsFundBalances>
      <ReconcilationRevenueExpenses>15664</ReconcilationRevenueExpenses>
      <ReconcilationOtherChanges>0</ReconcilationOtherChanges>
      <MethodOfAccountingAccrual>X</MethodOfAccountingAccrual>
      <AccountantCompileOrReview>0</AccountantCompileOrReview>
      <FSAudited>0</FSAudited>
      <FederalGrantAuditRequired>0</FederalGrantAuditRequired>
    </IRS990>
    <IRS990ScheduleA documentId="R000002" softwareId="11000129" softwareVersion="v1.00">
      <PubliclySupportedOrg170b1Avi>X</PubliclySupportedOrg170b1Avi>
      <GiftsGrantsContribReceived170>
        <CurrentTaxYearMinus3Years>100</CurrentTaxYearMinus3Years>
        <CurrentTaxYearMinus2Years>197729</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>308678</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>328621</CurrentTaxYear>
        <Total>835128</Total>
      </GiftsGrantsContribReceived170>
      <TaxRevLeviedForOrgBenefit170>
        <CurrentTaxYearMinus3Years>0</CurrentTaxYearMinus3Years>
        <CurrentTaxYearMinus2Years>0</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>0</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>0</CurrentTaxYear>
        <Total>0</Total>
      </TaxRevLeviedForOrgBenefit170>
      <ValueSrvcFcltsFurnishedByGovt>
        <CurrentTaxYearMinus3Years>0</CurrentTaxYearMinus3Years>
        <CurrentTaxYearMinus2Years>0</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>0</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>0</CurrentTaxYear>
        <Total>0</Total>
      </ValueSrvcFcltsFurnishedByGovt>
      <Total170>
        <CurrentTaxYearMinus4Years>0</CurrentTaxYearMinus4Years>
        <CurrentTaxYearMinus3Years>100</CurrentTaxYearMinus3Years>
        <CurrentTaxYearMinus2Years>197729</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>308678</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>328621</CurrentTaxYear>
        <Total>835128</Total>
      </Total170>
      <AmountsSubstContributorsTotal>0</AmountsSubstContributorsTotal>
      <PublicSupportTotal170>835128</PublicSupportTotal170>
      <GrossInvestmentIncome170>
        <CurrentTaxYearMinus3Years>0</CurrentTaxYearMinus3Years>
        <CurrentTaxYearMinus2Years>0</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>0</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>0</CurrentTaxYear>
        <Total>0</Total>
      </GrossInvestmentIncome170>
      <NetUBI>
        <CurrentTaxYearMinus3Years>0</CurrentTaxYearMinus3Years>
        <CurrentTaxYearMinus2Years>0</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>0</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>0</CurrentTaxYear>
        <Total>0</Total>
      </NetUBI>
      <OtherIncome170>
        <CurrentTaxYearMinus3Years>0</CurrentTaxYearMinus3Years>
        <CurrentTaxYearMinus2Years>0</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>0</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>0</CurrentTaxYear>
        <Total>0</Total>
      </OtherIncome170>
      <TotalSupport>835128</TotalSupport>
      <GrossReceiptsFromAdmissionsEtc>328621</GrossReceiptsFromAdmissionsEtc>
      <First5Years170>X</First5Years170>
    </IRS990ScheduleA>
    <IRS990ScheduleO documentId="R000003" softwareId="11000129" softwareVersion="v1.00">
      <GeneralExplanation>
        <Identifier>F990_P06_S0B_L11b</Identifier>
        <ReturnReference>Form 990, Part VI, Section B, Line 11b</ReturnReference>
        <Explanation>Return is prepared by Finance Officer and reviewed by Executive Director, Executive director signs return and submits for review during board meeting if changes need be made they are usually caught at the director level before going to the board. after board reviews the treasurer signs review and concur statement and authorization is then given to submit.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>F990_P06_S0B_L15</Identifier>
        <ReturnReference>Form 990, Part VI, Section B, Line 15</ReturnReference>
        <Explanation>Under current funding source compensation is set by them. Our normal process is the review national and regional salary and wage comparison data, giving us a platform upon which to approach the board of directors for key position salary approval.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>F990_P06_S0C_L19</Identifier>
        <ReturnReference>Form 990, Part VI, Section C, Line 19</ReturnReference>
        <Explanation>All Chapter Two INC., governing doc, financial statements, and other publicy veiwable documents are made avialable upon request.</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
  </ReturnData>
</Return>