Want to know how to write an annual report for your nonprofit organization? Then you’re in the right place. In this blog post, we’ll outline all of the sections included in a great nonprofit annual report. Think of this framework as the ultimate checklist for writing and designing the best annual report possible.
Before we jump in, let’s address some major questions.
Nonprofits are all different. Some are small charities and others are huge national organizations. Other nonprofits are hospitals, while others are education and advocacy based. Some focus on peer-to-peer fundraising and others rely only on federal funding. Plus, each annual report should have its own theme, based on the organization’s mission and values.
Because nonprofits vary in their day-to-day operations, most nonprofit annual reports do not look the same. While there is a basic structure that most organizations should follow (hence, the reason for this blog post!), every charity’s report is going to look a bit different from others in the industry.
While there is no “right” medium for your annual report, using free digital software is usually the best bet. Going digital with your annual report allows you to include interactive elements like videos, donation links, and graphics. Plus, it makes your annual report shareable on social media.
Choose a software that allows you to create an annual report template for years to come. That way, you’re not reinventing the wheel year after year.
Now that we’ve covered the basics, let’s get into how to write an annual report for a nonprofit. Namely, all of the necessary sections for your yearly review.
Though the above list is a great starting point, it’s necessary to dig into more of the details—keep reading!
Every great annual report needs a cover design. Like any great brochure or book, your annual report should have a title and an eye-catching visual element. Consider using a photo of your staff, beneficiaries, or a royalty-free stock photo.
Make sure your organization’s name and logo (if you have one) are front and center. No matter where your annual report ends up, your audience should know exactly what they’re about to read.
Unfortunately, not everyone will have time to read your annual report from front to back (though we wish they would!). In order to deal with this, be sure to include a table of contents so readers can jump to whatever section they’re most interested in.
This will prevent readers from feeling frustrated, or endlessly scrolling through your annual report without finding the answers they want. Focus on your supporters’ time and be sure that every piece of information is labeled and easy to locate.
A fundamental part of any nonprofit annual report is a letter or message from the organization’s leadership. Whether that leadership is the executive director, the founder, or a senior board member, most nonprofits include an introduction from one of their key staff members.
Usually, this letter addresses the readers, the communities the organization serves, and those that have supported them throughout the year. Think of this letter as an introduction to a book, or an author’s note. In this letter, the “author” (charity) is speaking directly to the readers and introducing them to the annual report.
The inclusion of this element makes your annual report feel professional and trustworthy. Plus, it helps to set the tone for the rest of the content to follow.
Though we assume that most of our supporters and donors know what our mission and values are, that’s not always the case. When writing your annual report, make sure to cover all the basics, including who you are as an organization. Remind supporters of what you value, and what your goals are—and why.
This not only refreshes the minds of some of your consistent supporters but also introduces you to potential new readers. And, hopefully donors.
One of the biggest components of any annual report is the inclusion of program and initiative updates. When supporters donate to your cause, they want to know exactly what kind of impact their contributions have had. That’s where this section comes in.
In this part of your annual report, consider adding the following elements:
In this section, be sure to get specific about your accomplishments and setbacks. The more granular you can be, the better. Remember, trust and transparency are everything when it comes to donor retention!
In order to give your supporters a holistic update on your work, it’s crucial to include impact stories and testimonials. Or, evidence of your impact on real people, in real situations. Think of this section as the “product reviews” page, where customers can assess whether a purchase is worth their money or not. In this section, proof of your impact will convince them to remain loyal to your cause.
In this part of your annual report, consider adding the following elements:
Most nonprofits are required by law to submit financial statements at the end of every year. Your annual report is an excellent chance to contextualize those findings for supporters to understand.
In this section, it’s important to be transparent and simplify some more complicated statistics. Categorize your financial findings into categories that include layman’s terms, not industry specific jargon.
In this part of your annual report, consider adding the following elements:
When putting together this financial information, be sure to create a pie, graph, or line chart that helps with data visualization so readers aren’t confused.
Of course, the best annual reports feature lots of gratitude. Because nonprofits often rely on the support of others, it’s crucial to thank donors and stakeholders in your reporting.
In this part of your annual report, consider adding the following elements:
While the inclusion of contact information and staff lists feels rudimentary, it is important. Including staff information allows your nonprofit to feel more trustworthy and real.
Lastly, readers should finish your annual report knowing exactly where you’re headed next. After all of the gratitude, and reflection of the past year, be sure to include future goals to inspire action.
In doing this, your supporters will feel driven to continue contributing. They’ll know that you work, and their work, is not yet over.
When readers are done with your report, they should know exactly how they can contact you. Consider listing an email address, a phone number, you social media accounts, and more. That way, supporters can be directly in touch with any questions or comments.
Looking for more information on how to write an annual report for a nonprofit? Check out these posts!