{"id":345754,"date":"2022-01-26T10:00:15","date_gmt":"2022-01-26T16:00:15","guid":{"rendered":"https:\/\/nonprofithub.org\/?p=345754"},"modified":"2022-02-01T13:09:43","modified_gmt":"2022-02-01T19:09:43","slug":"5-goals-of-a-great-nonprofit-annual-report","status":"publish","type":"post","link":"https:\/\/nonprofithub.org\/5-goals-of-a-great-nonprofit-annual-report\/","title":{"rendered":"5 Goals of a Great Nonprofit Annual Report"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;3.22&#8243; da_disable_devices=&#8221;off|off|off&#8221; global_colors_info=&#8221;{}&#8221; da_is_popup=&#8221;off&#8221; da_exit_intent=&#8221;off&#8221; da_has_close=&#8221;on&#8221; da_alt_close=&#8221;off&#8221; da_dark_close=&#8221;off&#8221; da_not_modal=&#8221;on&#8221; da_is_singular=&#8221;off&#8221; da_with_loader=&#8221;off&#8221; da_has_shadow=&#8221;on&#8221;][et_pb_row _builder_version=&#8221;3.25&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;3.25&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text _builder_version=&#8221;4.14.7&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; sticky_enabled=&#8221;0&#8243;]<\/p>\n<h2><b>What is a nonprofit annual report?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">An annual report is a common publication of nonprofit organizations documenting their achievements and performance over the previous year. Well-rounded reports balance forecasting the future of the organization and establishing goals with reporting historical data and program information.\u00a0<\/span><\/p>\n<h2><b>A good nonprofit annual report has goals!<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">When developing a good annual report, start with the end in mind. If your organization runs through the motions and produces a report because you always have, consider reexamining the purpose. Using the same template for five years in a row or mailing a print piece with no way to track engagement doesn&#8217;t serve your mission. An annual report should be a distinct piece of your communications and marketing assets. Since annual reports are big projects, it\u2019s okay to expect more of this signature piece.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here are five goals to pursue when developing a great nonprofit annual report:<\/span><\/p>\n<h3><b>Goal #1: Provide Clarity &amp; Accountability<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Traditional nonprofit annual reports focused heavily on financial performance and statistical data. While text-laden, multi-page diatribes are now less common (thank goodness!), there is still a need to include enough detail and transparency and build trust. Here are some clarifying details your donors might be interested in:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/nonprofithub.org\/webinar\/an-intro-to-financials-for-nonprofits\/\"><span style=\"font-weight: 400;\">Financial reporting<\/span><\/a><span style=\"font-weight: 400;\"> in comparison to budget<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Programmatic breakdown of resources<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Campaign and project progress<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Team and board member position changes<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Don\u2019t be afraid to use graphs, charts, and graphics to <\/span><a href=\"https:\/\/nonprofithub.org\/nonprofit-impact-report-how-to-visually-communicate-your-impact\/\"><span style=\"font-weight: 400;\">depict the data<\/span><\/a><span style=\"font-weight: 400;\">. As a nonprofit organization, your 990 tax return is publicly available, and if donors want to dig deeper, they can. However, since most donors won\u2019t take the time to do further research, provide enough detail so readers don&#8217;t fill in the blanks with assumptions.\u00a0<\/span><\/p>\n<p><b>Pro Tip:<\/b><span style=\"font-weight: 400;\"> If you have active donors on your board or fundraising committee, consider approaching them to review the draft annual report before you publish it. They will likely be honored to be part of the process and appreciate the opportunity to give input.\u00a0\u00a0<\/span><\/p>\n<h3><b>Goal #2: Inspire Conversation<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Think about your most involved donor or volunteer. Then ask yourself what to include in your annual report that might even surprise them. There\u2019s no point in stating the obvious or repeating previously shared information. Think of your nonprofit\u2019s annual report as a showcase piece that inspires curiosity and conversation.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Stories of mission impact are critical, but sharing stories of the board or team development and collaboration with partner organizations demonstrates your nonprofit\u2019s interest in continuous improvement. These types of stories also lend themselves to showing your team\u2019s dynamic, individual personalities, and culture.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Creating showcases of donor experiences also provides your top supporters with a way to start a conversation with their network. How awesome would it be for your top donor to share their story through your annual report? It takes the pressure off your donor to try and cultivate an opportunity and ensures the right information is shared.\u00a0<\/span><\/p>\n<h3><b>Goal #3: Honor Supporters<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Take the notion of showcasing your donor experiences one step further. Your annual report is a fantastic opportunity to highlight supporters who helped foster transformational change through your programs. Donors are more likely to understand your mission and its impact when they see how their peers helped carry it out.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The peer pressure factor is real, too. Take the <\/span><a href=\"https:\/\/www.unitedway.org\/annual-report#\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">United Way<\/span><\/a>,<span style=\"font-weight: 400;\"> for example. By categorizing donors based on giving level, they consistently keep aspirational levels of giving in front of their supporters. While not all donors want their contributions called out, others consider it motivational\u2014both for themselves and for their community.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Consider unique ways to shine light on those who make your work possible. A video reel of testimonials or even quotes from supporters and volunteers is far more powerful than a list of names.\u00a0<\/span><\/p>\n<h3><b>Goal #4: Give Readers Something Easy to Remember &amp; Hard to Forget<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Take care to not dedicate too much space to telling one story that, while moving, is too complicated for anyone to fully understand or relay. A great annual report shares concise stories that demonstrate the connection between support and impact in short order. Ideally, your readers are so moved by what they read that they share it with their network (see Goal #2 to Inspire Conversation above).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Using effective <\/span><a href=\"https:\/\/nonprofithub.org\/the-art-of-nonprofit-storytelling\/\"><span style=\"font-weight: 400;\">storytelling practices<\/span><\/a><span style=\"font-weight: 400;\"> helps narrate your organization\u2019s impact without unnecessary fluff or complications. Ideally, provide readers with a narrative that is unforgettable and tied to the following equation:\u00a0<\/span><\/p>\n<p><b>Support<\/b><span style=\"font-weight: 400;\"> + <\/span><b>Program<\/b><span style=\"font-weight: 400;\"> =<\/span><b> Impact<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To be effective, simplify your stories. Enable your reader to easily identify their position in the equation (hopefully, under Support) and how necessary they are for it to work.<\/span><\/p>\n<h3><b>Goal #5: Impress<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">There is nothing worse than a great story or compelling case that&#8217;s presented poorly. If showcase material comprises your annual report, make sure it\u2019s presented in a showcase fashion!\u00a0<\/span><\/p>\n<div id=\"attachment_345760\" style=\"width: 522px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-345760\" class=\"wp-image-345760 size-full lazyload\" data-src=\"https:\/\/nonprofithub.org\/wp-content\/uploads\/2022\/01\/annual-report-example-1.png\" alt=\"Nonprofit annual report example\" width=\"512\" height=\"254\" data-srcset=\"https:\/\/nonprofithub.org\/wp-content\/uploads\/2022\/01\/annual-report-example-1.png 512w, https:\/\/nonprofithub.org\/wp-content\/uploads\/2022\/01\/annual-report-example-1-480x238.png 480w\" data-sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 512px, 100vw\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 512px; --smush-placeholder-aspect-ratio: 512\/254;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-345760\" class=\"wp-image-345760 size-full\" src=\"https:\/\/nonprofithub.org\/wp-content\/uploads\/2022\/01\/annual-report-example-1.png\" alt=\"Nonprofit annual report example\" width=\"512\" height=\"254\" srcset=\"https:\/\/nonprofithub.org\/wp-content\/uploads\/2022\/01\/annual-report-example-1.png 512w, https:\/\/nonprofithub.org\/wp-content\/uploads\/2022\/01\/annual-report-example-1-480x238.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 512px, 100vw\" \/><\/noscript><p id=\"caption-attachment-345760\" class=\"wp-caption-text\">Muskegon, Michigan Community Foundation Annual Report 2020 pg. 5<\/p><\/div>\n<p><i><span style=\"font-weight: 400;\">Good design makes your message memorable. When developing an annual report, or any other marketing asset for that matter, you should consider the impact it will make on your audience. Ask yourself &#8220;what is our goal?&#8221; Then don&#8217;t be afraid to get creative. A creative design will allow you to engage with more of your audience and make a larger impact. By doing this, you are more likely to achieve the goals of fundraising, donations, or awareness.<br \/><\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">-Trevor Dickerson, Creative Director at <a href=\"https:\/\/new.school\/\">New School<\/a><\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Whether you dazzle donors through a dynamic print piece or a multimedia approach using video, make sure to impress.\u00a0<\/span><\/p>\n<h2><b>There\u2019s Always Next Year<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">If you\u2019re reading this post-publication of your annual report, do not fear. There is always next year. Start planning early and download the Guide to Great Annual Reports and research what styles and media types to use. Work with your team and volunteers to ensure you&#8217;re <\/span><a href=\"https:\/\/nonprofithub.org\/capturing-stories-guide\/\"><span style=\"font-weight: 400;\">capturing stories<\/span><\/a><span style=\"font-weight: 400;\"> and storing the necessary information to retell them when it comes time to produce your next annual report. <\/span><\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=&#8221;2_5,3_5&#8243; _builder_version=&#8221;4.14.5&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;2_5&#8243; _builder_version=&#8221;4.14.5&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_image src=&#8221;https:\/\/nonprofithub.org\/wp-content\/uploads\/2022\/01\/NPH_AnnualReportGuide_Mockup-e1643203252888.jpg&#8221; alt=&#8221;Nonprofit Organization Annual Report Guide&#8221; title_text=&#8221;NPH_AnnualReportGuide_Mockup&#8221; _builder_version=&#8221;4.14.5&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_image][\/et_pb_column][et_pb_column type=&#8221;3_5&#8243; _builder_version=&#8221;4.14.5&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_code _builder_version=&#8221;4.14.5&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<div class=\"_form_191\"><\/div>\n<p><script src=\"https:\/\/domoregood.activehosted.com\/f\/embed.php?id=191\" type=\"text\/javascript\" charset=\"utf-8\"><\/script>[\/et_pb_code][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is a nonprofit annual report? An annual report is a common publication of nonprofit organizations documenting their achievements and performance over the previous year. Well-rounded reports balance forecasting the [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":345758,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"<h2><b>What is a nonprofit annual report?<\/b><\/h2><p><span style=\"font-weight: 400;\">An annual report is a common publication of nonprofit organizations documenting their achievements and performance over the previous year. Well-rounded reports balance forecasting the future of the organization and establishing goals with reporting historical data and program information.\u00a0<\/span><\/p><h2><b>A good nonprofit annual report has goals!<\/b><\/h2><p><span style=\"font-weight: 400;\">When developing a good annual report, start with the end in mind. If your organization runs through the motions and produces a report because you always have, consider reexamining the purpose. Using the same template for five years in a row or mailing a print piece with no way to track engagement doesn't serve your mission. An annual report should be a distinct piece of your communications and marketing assets. Since annual reports are big projects, it\u2019s okay to expect more of this signature piece.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Here are five goals to pursue when developing a great nonprofit annual report:<\/span><\/p><h3><b>Goal #1: Provide Clarity & Accountability<\/b><\/h3><p><span style=\"font-weight: 400;\">Traditional nonprofit annual reports focused heavily on financial performance and statistical data. While text-laden, multi-page diatribes are now less common (thank goodness!), there is still a need to include enough detail and transparency and build trust. Here are some clarifying details your donors might be interested in:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/nonprofithub.org\/webinar\/an-intro-to-financials-for-nonprofits\/\"><span style=\"font-weight: 400;\">Financial reporting<\/span><\/a><span style=\"font-weight: 400;\"> in comparison to budget<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Programmatic breakdown of resources<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Campaign and project progress<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Team and board member position changes<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">Don\u2019t be afraid to use graphs, charts, and graphics to <\/span><a href=\"https:\/\/nonprofithub.org\/nonprofit-impact-report-how-to-visually-communicate-your-impact\/\"><span style=\"font-weight: 400;\">depict the data<\/span><\/a><span style=\"font-weight: 400;\">. As a nonprofit organization, your 990 tax return is publicly available, and if donors want to dig deeper, they can. However, since most donors won\u2019t take the time to do further research, provide enough detail so readers don't fill in the blanks with assumptions.\u00a0<\/span><\/p><p><b>Pro Tip:<\/b><span style=\"font-weight: 400;\"> If you have active donors on your board or fundraising committee, consider approaching them to review the draft annual report before you publish it. They will likely be honored to be part of the process and appreciate the opportunity to give input.\u00a0\u00a0<\/span><\/p><h3><b>Goal #2: Inspire Conversation<\/b><\/h3><p><span style=\"font-weight: 400;\">Think about your most involved donor or volunteer. Then ask yourself what to include in your annual report that might even surprise them. There\u2019s no point in stating the obvious or repeating previously shared information. Think of your nonprofit\u2019s annual report as a showcase piece that inspires curiosity and conversation.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Stories of mission impact are critical, but sharing stories of the board or team development and collaboration with partner organizations demonstrates your nonprofit\u2019s interest in continuous improvement. These types of stories also lend themselves to showing your team\u2019s dynamic, individual personalities, and culture.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Creating showcases of donor experiences also provides your top supporters with a way to start a conversation with their network. How awesome would it be for your top donor to share their story through your annual report? It takes the pressure off your donor to try and cultivate an opportunity and ensures the right information is shared.\u00a0<\/span><\/p><h3><b>Goal #3: Honor Supporters<\/b><\/h3><p><span style=\"font-weight: 400;\">Take the notion of showcasing your donor experiences one step further. Your annual report is a fantastic opportunity to highlight supporters who helped foster transformational change through your programs. Donors are more likely to understand your mission and its impact when they see how their peers helped carry it out.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">The peer pressure factor is real, too. Take the <\/span><a href=\"https:\/\/www.unitedway.org\/annual-report#\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">United Way<\/span><\/a>,<span style=\"font-weight: 400;\"> for example. By categorizing donors based on giving level, they consistently keep aspirational levels of giving in front of their supporters. While not all donors want their contributions called out, others consider it motivational\u2014both for themselves and for their community.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Consider unique ways to shine light on those who make your work possible. A video reel of testimonials or even quotes from supporters and volunteers is far more powerful than a list of names.\u00a0<\/span><\/p><h3><b>Goal #4: Give Readers Something Easy to Remember & Hard to Forget<\/b><\/h3><p><span style=\"font-weight: 400;\">Take care to not dedicate too much space to telling one story that, while moving, is too complicated for anyone to fully understand or relay. A great annual report shares concise stories that demonstrate the connection between support and impact in short order. Ideally, your readers are so moved by what they read that they share it with their network (see Goal #2 to Inspire Conversation above).\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Using effective <\/span><a href=\"https:\/\/nonprofithub.org\/the-art-of-nonprofit-storytelling\/\"><span style=\"font-weight: 400;\">storytelling practices<\/span><\/a><span style=\"font-weight: 400;\"> helps narrate your organization\u2019s impact without unnecessary fluff or complications. Ideally, provide readers with a narrative that is unforgettable and tied to the following equation:\u00a0<\/span><\/p><p><b>Support<\/b><span style=\"font-weight: 400;\"> + <\/span><b>Program<\/b><span style=\"font-weight: 400;\"> =<\/span><b> Impact<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">To be effective, simplify your stories. Enable your reader to easily identify their position in the equation (hopefully, under Support) and how necessary they are for it to work.<\/span><\/p><h3><b>Goal #5: Impress<\/b><\/h3><p><span style=\"font-weight: 400;\">There is nothing worse than a great story or compelling case that's presented poorly. If showcase material comprises your annual report, make sure it\u2019s presented in a showcase fashion!\u00a0<\/span><\/p>[caption id=\"attachment_345760\" align=\"alignleft\" width=\"512\"]<img class=\"wp-image-345760 size-full\" src=\"https:\/\/nonprofithub.org\/wp-content\/uploads\/2022\/01\/annual-report-example-1.png\" alt=\"Nonprofit annual report example\" width=\"512\" height=\"254\" \/> Muskegon, Michigan Community Foundation Annual Report 2020 pg. 5[\/caption]<p><i><span style=\"font-weight: 400;\">Good design makes your message memorable. When developing an annual report, or any other marketing asset for that matter, you should consider the impact it will make on your audience. Ask yourself \"what is our goal?\" Then don't be afraid to get creative. A creative design will allow you to engage with more of your audience and make a larger impact. By doing this, you are more likely to achieve the goals of fundraising, donations, or awareness.<br \/><\/span><\/i><\/p><p><span style=\"font-weight: 400;\">-Trevor Dickerson, Creative Director at New School<\/span><\/p><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">Whether you dazzle donors through a dynamic print piece or a multimedia approach using video, make sure to impress.\u00a0<\/span><\/p><h2><b>There\u2019s Always Next Year<\/b><\/h2><p><span style=\"font-weight: 400;\">If you\u2019re reading this post-publication of your annual report, do not fear. There is always next year. Start planning early and download the Guide to Great Annual Reports and research what styles and media types to use. 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