How to Create a Nonprofit Annual Report

Nonprofit organizations operate differently from a regular business report. This is because they don’t earn a profit for what they do but instead, organize activities and events to support particular causes. As a donor, you’d want to know the credibility of such organization, right?

Most people refer to formal documents that express a nonprofit’s history of accomplishments. This is typically stated in the organization’s annual report. Through annual reports, nonprofits are able to provide an overview of the organization to their supporters and potential donors. This is done in order to gain funds to support their projects.

Elements of a Nonprofit Annual Report

Accomplishments. Although nonprofits like to highlight the things that they have done, they won’t matter as much as what you were able to accomplish from doing these activities. Construct your report writing in such a way that will make your readers understand the purpose of these activities to the organization’s mission.

Real-life stories. The best way to make an emotional appeal is to gain testimonies from people who benefit from your cause. Provide supporting documents to prove this, such as videos and photos. This is a good way to develop trust from your donors and supporters as well.

Financial information. Nonprofits typically present their financial reports through charts and graphs. Make it a point to include a descriptive paragraph to explain the data that has been presented, as not a lot of people may fully understand it.

List of donors. While some donors may want to remain anonymous, there are still corporate donors who would appreciate the recognition. As a nonprofit, it’s your responsibility to express your utmost gratitude to these donors. Although it may not be possible to mention them one by one, try to relay your thanks somewhere in the free report examples.

What Should a Nonprofit Annual Report Include?

A nonprofit annual report should include the organization’s achievements, financial statements, expression of thanks, and a call to action. Unlike a business report, a nonprofit report is not a legal requirement. It is made for the benefit of the organization and the individuals involved. Supporters and donors are considered to be the readers of such technical report, as this is a document that informs them of the organization’s operations. It should provide a quick run through of significant events in the past year.

Tips for Writing Nonprofit Annual Reports

• Craft a strong introduction. An interesting background of your organization would do the trick. This includes your organization’s vision, mission, and values.
• Focus on successful projects. There’s no point in mentioning failed efforts, as it may only bring a bad name for yourself.
• State performance objectives. Supporters and donors need to be aware of what your annual plans are and how you aim to achieve them.
• Be transparent. This is in terms of financial and fundraising information. Your donors have the right to know where their donations are headed to and why.
• Make use of visuals. Photos have the ability to attract an audience. Use this to promote your organization and gain a stronger following.