Creating a nonprofit annual report might feel like a year-end chore, but it’s an incredible opportunity to highlight your achievements and inspire your supporters. An effective annual report can serve as a key donor retention and marketing tool. If you’re going to invest time and effort into producing one, why not make it a dynamic reflection of your organization’s impact?
What is a Nonprofit Annual Report?
At its core, a nonprofit annual report is a summary of your organization’s activities and achievements over the past year. While financials are an essential component, the best reports go beyond numbers. They showcase the outcomes of your efforts, the lives you’ve touched, and your future aspirations.
Key Elements to Include
- Mission Statement: Remind your audience of your purpose and introduce your organization to new readers with a brief summary of who you are and what you do.
- Accomplishments: Highlight your major projects, initiatives, goals achieved, and the people or communities you’ve helped. This is your chance to shine a light on your successes.
- Gratitude: Express thanks to everyone who supported your organization, including donors, volunteers, board members, business partners, and sponsors.
- Personal Stories and Testimonials: Use storytelling to bring your impact to life. Include anecdotes, success stories, profiles, and testimonials from those you’ve helped.
- Financial Statements: Provide a clear and concise overview of your revenue and expenses. Use infographics and charts to make the data accessible and engaging.
The Purpose of a Nonprofit Annual Report
Before you start planning and writing, define the purpose(s) your annual report will serve. Beyond fulfilling IRS requirements, consider how it fits into your broader organizational and marketing strategies. Potential purposes include:
- Showcasing Financial Health: Use visuals to present your financial information in an easily digestible format, making it simple for supporters to understand your financial health at a glance.
- Engaging Loyal Supporters: Inspire your donors with your big-picture plans. Discuss how your recent accomplishments fit into your long-term vision and invite supporters to stay involved.
- Highlighting Successes and Challenges: Celebrate your achievements and be transparent about ongoing challenges. Illustrate the need for continued support by showing areas where more help is needed.
- Expressing Gratitude: Show appreciation for your supporters. Acknowledge their contributions and emphasize their importance to your mission’s success.
How to Write a Nonprofit Annual Report
Once you’ve defined your report’s purposes, follow these principles to create a compelling document:
- Tell a Story: Go beyond statistics by sharing individual stories. Specific anecdotes, such as “We got Jim the clothes he needed for his first job interview, and now he’s gainfully employed,” put a human face to your work and resonate with readers on an emotional level.
- Create Emotional Impact: Use language that connects emotionally with your audience. Avoid jargon and choose words that evoke feelings of empowerment, hope, and transformation.
- Be Transparent: Honesty builds trust. If you faced challenges or setbacks, mention them and explain how you plan to address them. Transparency about your financials and operations is crucial.
- Keep it Concise: Aim for clarity and brevity. Cover the essentials without overwhelming your readers with too much detail. Use concise language and focus on the most important points.
- Keep it Donor-Focused: Frame your achievements in terms of donor impact. For example, “Your donations helped provide housing for 25 women and children who needed a safe place to live,” emphasizes the donor’s role in your success.
- Use Visuals: Break up text with infographics, photos, and other visuals. Images of the people you’ve helped, as well as charts and graphs, make the report more engaging and easier to navigate.
Getting Started on Your Annual Report
Feeling overwhelmed? Don’t worry. Creating an outstanding annual report doesn’t have to be daunting. Here are some steps to get started:
- Define Your Objectives: Determine the main goals of your annual report. Are you aiming to inspire donors, showcase financial transparency, or celebrate your successes?
- Gather Information: Collect data, stories, photos, and testimonials. Ensure you have all the necessary financial information and success stories that highlight your impact.
- Outline Your Report: Plan the structure of your report. Decide on the key sections and the flow of content. An outline helps keep the report organized and focused.
- Write and Design: Start drafting your content, keeping your audience and objectives in mind. Incorporate visuals to break up text and make the report visually appealing.
- Review and Edit: Proofread your report for clarity, accuracy, and consistency. Ensure that it aligns with your brand voice and mission.
- Publish and Distribute: Share your report with your supporters through various channels, including your website, email newsletters, and social media.
Example Annual Report: Buffet Early Childhood Fund
For inspiration, check out a digital nonprofit annual report we created for the Buffet Early Childhood Fund. It’s an excellent example of how to present your achievements, financials, and future plans in an engaging and visually appealing way.
Conclusion
An outstanding nonprofit annual report is more than just a compliance document. It’s a powerful communication tool that can inspire your supporters, showcase your achievements, and set the stage for future success. By focusing on storytelling, emotional impact, transparency, brevity, donor-centric language, and visual appeal, you can create a report that resonates with your audience and reinforces their commitment to your mission.
Need help creating your annual report? Firespring can assist with design, printing, and mailing. Download our 5 Steps to an Engaging Nonprofit Annual Report checklist to get started. Together, let’s make your annual report a standout reflection of your nonprofit’s incredible impact
