5 reports nonprofits should produce annually

By Dionna Dash

We dare to say all (or at least many) nonprofit pros dread this task: creating reports.

With so many different types of donor communications and ways to highlight impact, it can be tricky to figure out which reports you should be writing. And if you’re strapped for time, which is common in a fast-paced environment like a nonprofit, crafting only the most essential reports is often a necessity.

To remove the guesswork, we’ve created a list of five key reports that you should be producing. Each one serves a different purpose in showcasing your impact, cultivating donor relations and encouraging meaningful gifts.

 Pro tip: Use Storyraise Reports to simplify the formatting process and create reports that look polished and professional.

1. Annual report

 Audience: Existing donors and other investors
 Frequency: Annually

As hinted at in its name, an annual report is produced once a year, providing a comprehensive look into your nonprofit’s activities and financial performance throughout the year prior. The report focuses mainly on the financial side of things, containing information about transactions and operations, and oftentimes making forecasts about the coming year. This allows your donors to see how their money is being used to achieve your nonprofit’s mission. Many annual reports also include impactful stories from beneficiaries, leadership or volunteers that help complement the financial statistics and provide a more holistic look into your nonprofit’s mission.

2. Impact report

 Audience: Existing donors, beneficiaries, volunteers and other stakeholders
 Frequency: Produce annually, bi-annually or even quarterly, based on how often your organization collects data and the length of your program cycles

Unlike an annual report, an impact report focuses less on financials and more on societal influence. These reports highlight the good your organization has done and showcase stories of real people who benefitted from your nonprofit’s services. While they can encourage giving, the main purpose of them is to demonstrate how past donations have already helped to create lasting change in the lives of others.

3. Case for giving

 Audience: Prospective donors (and you can include existing donors, too)
 Frequency: Depends on how often your organization wants to ask for unrestricted gifts and how often you’re fundraising for a specific program

A case for giving explains to prospective donors why they should make a gift to your nonprofit. This report can be used to raise general, unrestricted funds to support all of your organization’s activities and initiatives, or they can be based around a specific program you’re fundraising for. Generally, a case for giving includes an overview of your organization’s mission, stats and stories that speak to your nonprofit’s impact and a call to action to encourage donations. These reports are key in securing new donors and launching new programs.

4. Financial report

 Audience: Existing donors and other investors, as well as your own nonprofit professionals
 Frequency: Annually for statements of activities, statements of financial position and statements of functional expenses; usually monthly for statements of cash flows

Financial reports are an important tool for analyzing operational data and encouraging organizational transparency. There are four core financial statements, each of which summarizes the data in a different way, providing various insights into the current standing of your nonprofit.

 A statement of activities provides detailed information about your organization’s transactions and expense allocations
 A statement of financial position offers a snapshot of your organization’s financial health
 A statement of cash flows shows how cash moves in and out of your organization
 A statement of functional expenses lists expenses and explains how each expense furthers your organization’s mission

These reports help your organization maintain accountability to itself and its donors, and also ensure that your nonprofit maintains compliance with reporting requirements for tax-exempt organizations.

5. Program outcome report

 Audience: Existing donors, beneficiaries, volunteers and other stakeholders, as well as your own nonprofit professionals
 Frequency: Depends on how often your organization has new data available and on how many programs exist that warrant a program outcome report

Program outcome reports explain the measurable changes and benefits that result from a program that your nonprofit runs. They work to demonstrate a program’s value by showcasing the short-term or long-term effects its services have on beneficiaries. For example, a nonprofit running a food bank might craft a program outcome report about increased access to nutritional meals for individuals in underserved communities. These reports can be a helpful tool to secure further funding for the program you’re highlighting and to assess ways in which the program can improve and grow.

Ready to get started? Use Storyraise Reports to create your next report.