As a nonprofit, transparency, accountability, and storytelling are crucial elements of your success. And the perfect place to compile this information is in your annual report.
Think of your annual report like a school yearbook — a compelling retrospective of the highlights of your prior year. But instead of awkward school pics, it’s filled with details on the impact your nonprofit made in the community, beautiful photos from outreach and fundraising events, financial stats, impactful stories from the people you serve, and much more.
Putting together a comprehensive annual report can be a daunting task. Read on to learn more about how to make your annual report not just something to check off your to-do list, but a powerful tool you can use all year long!
What should I include in my annual report?
- Professional (or your own) photography vs. stock photography
- A theme that carries throughout the report
- An introduction (typically a letter from the executive director or board chair, but feel free to get creative!)
- Your nonprofit’s mission and vision statements
- Your service area, if applicable
- Major accomplishments, milestones, and events from prior year
- Success stories/impact stories about your beneficiaries
- Impact numbers specific to your services
- Volunteer, staff, and donor highlights
- Vision for next year/future plans
- Financial statement — revenue and expenses
- A list of your community partners
- Board of directors and leadership teams
- Donor list, if desired
- Thank you message
- Call to action (get involved, donate, volunteer)
- Contact info
Consider:
- Creating an online version of your annual report so it can be easily shared and accessed in a digital format
- Giving your online report a custom or vanity URL or a QR code so it’s easy for people to find it and your donation page online
- Crafting an email or direct mail campaign that accompanies the annual report or follows it
Who should be involved in creating my annual report?
Your internal staff are integral to the year-round work that goes into preparing for your annual report. Most likely, they are the ones gathering the impact stories, statistics, photography, and other information that make up the report.
Additionally, you may want to include:
- An outside marketing agency
- Board members
- Volunteers
What should I include in my annual report budget?
Design and layout
The cost to hire a professional graphic designer to create a visually appealing layout, charts, and infographics.
Writing, editing, and proofreading
Cost to hire a copywriter or freelance writer to craft compelling narratives and ensure the final draft is polished.
Photography and media
Professional photography really amps up the quality of your report, so when including multimedia elements like video stories, be sure to include the cost of hiring a professional videographer/video editor.
Printing and distribution
Costs for high-quality printing can vary depending on page count, paper quality, how many copies you need, postage, and shipping.
Digital distribution
The cost associated with emailing your report or posting it on your website may seem relatively minimal, but it’s still important to note it in your budget.
Project management
Fees for bringing in external consultants to manage the project and keep everything on track.
Compliance and legal review
You may choose to have the report reviewed by legal professionals to ensure you’re complying with regulations and transparency standards.
Compliance and legal review
In-house time — The cost of the time your staff members spend working on the project, whether it’s writing, designing, or managing.
How can I use my annual report or elements of it throughout the year?
The great thing about an annual report is it’s full of important information you should have on hand anyway, so it serves as an excellent resource for your team. Is a board member asking how much you spent last year on operations? Check the annual report. Is a donor curious about your newest office or facility? Refer them to the annual report. Have a routine legislative or assembly meeting coming up? Take a stack of your annual reports to give out.
Additional uses of your annual report:
- Repurpose elements (impact stories, graphics, photography, etc.) of the report for social media posts and/or press releases.
- Refer back to the report when writing grant proposals or applying for other funding.
- Use as a recruitment tool for staff, volunteers, and board members.
- Reference it when planning next year’s annual report.
- Link to it in newsletters, one-on-one fundraising efforts, and other marketing materials.
Creating a compelling annual report is not just about numbers and achievements — it’s about telling your nonprofit’s story in a way that engages, informs, and inspires your stakeholders. An effective annual report is a powerful tool for advancing your mission and celebrating the progress you’ve made in your community!
