Listing out and thanking your major contributors, influential staff, and board members is a necessary part of your report. Regardless of the plan of attack you choose, with our help, youll create a report that inspires your audience to continue supporting your work. Besides the vibrant colors used, this annual report is packed with compelling photographs, and the financial section makes good use of some graphs. Reporting & AnalyticsEasily generate accurate reports. Choose Donorboxas your donation system and check out our Nonprofit blogfor more nonprofit resources and tips. Its hard not to walk away with a new level of connection to their work. Now, its about how to showcase that to the masses and build momentum for another impactful year ahead. What makes a nonprofit annual report compelling? Top 10 Questions About Nonprofit Annual Reports in 2023. Since an annual report is focused on your donors and celebrates how theyve empowered your mission, if you dont include a call to action, youre missing out. A nonprofit annual report serves as a way for the organization to communicate its achievements and progress to its stakeholders. Is it the main benefit that your beneficiaries and supporters receive from your program or service? Once you've defined what purpose(s) you want your annual report to serve, it's time to strategize and write. They use simple but effective visuals to share their numbers and their impact. For annual reports, either use the letter as a personalized executive summary or as an extra helping of thanks to your supporters with a brief preview of good things to come. What colors would you like to use in your annual report and why? Build trust through financial transparency. . Dedicate space in your annual report to let readers know how they can support your cause. If you incorporated or foreign-qualified on April 15, then your annual report is due every year by March 31. ), there is still a need to include enough detail and transparency and build trust. Remember, you spent all year doing the hard work. This should go for all the types of support that your community shows you. Nonprofit annual reports should serve as a high-level overview of relevant information for your donors and the larger community to reference at the end of each year. Part of showing your thanks is by highlighting donors who went above and beyond for your cause. P.S. Its likely that your audience will be your current supporters as well as prospective major donors, corporate sponsors, and foundations. The report starts with a letter from their interim CEO, gives immediate shout-outs to their partners and supporters, and details their vision, their work, their locations, and finally, their financials. Use these as a guide as you build a template for the first time or enhance your existing template to delight donors. It's the "Swiss Army Knife" of communications. To pick a theme, you can have the committee decide on one or organize a brainstorming session. Animations help readers follow along on the journey and their links to relevant videos help visitors learn about any topic of interest. It is made for the benefit of the organization and the individuals involved. To begin with, youll almost certainly want to publicize your annual report on a dedicated page of your website. Pro tip: Dont structure your annual report by functional/organizational areas. If you are looking for a way to research funding opportunities and manage your grants pipeline, check out Instrumentl. Simple colors and compelling imagery clearly communicate the impact of RAICES and its donors. The San Diego Foundation took its 2021 annual report to the next level. Theres no point in stating the obvious or repeating previously shared information. An annual report is an effective tool for closing out your year. Consult with your webmaster or IT department, as well as your marketing folks. Its commonplace for nonprofits to include their major donors and which project they contributed to somewhere in their annual reports. For example, a theme will influence your design choices such as colors, graphic elements, and the type of photography you include. Make sure to include someone responsible for the design/layout and someone who will eventually be signing off on the copy. All written content should be precise, minimal, and impactful. Taking a cue from our good friend . An Annual Report is due by the expiration date, which is last day of the month in which the business was first formed. Consider cost when choosing how to format your report. Readers should know about your organizations mission and what change you hope to make before jumping into the data. This can help with visual consistency and ability to reference annual goals. Very often, nonprofit annual reports (not to mention direct mail appeals) are all about the nonprofit, rather than the potential donor. In the image above, the Inner City Hospital used charts to break down the source of funds they received and how those funds were used throughout the hospitals various projects and departments. Alternatively, when you talk about the projects your organization worked on over the past year, make sure to mention the campaign that funded the project. Copyright 2023 DonorSearch. Habitat for Humanity does a great job with storytelling. If not, do you need to take some? There are a variety of ways you can put your report together, but no matter what direction you decide to go, here are six standard principles you'll want to apply. San Francisco AIDS Foundation 2021 Annual Report, Animal Legal Defense Fund 2021 Annual Report, National Park Foundation 2021 Annual Repor, The San Diego Foundation 2021 Annual Report. For instance, the San Francisco Aids Foundation posted this on Facebook when its 2021 annual report went live online:, And Keep Austin Fed, a nonprofit that redistributes food in Austin, TX, tweeted out a promotion of their annual report.. It would be the same thing with an annual report theme. The American Red Cross prevents and alleviates human suffering in the face of emergencies by mobilizing the power of volunteers and the generosity of donors. , Our mission is to create a world where every person has the opportunity to live a healthy, productive life. , To provide effective means for the prevention of cruelty to animals throughout the United States. . Subtle, right? Going back to your budget Look at how much money you have allotted. Only if you make them so. Feature at least one donor profile, and dont forget to include a list of your donors somewhere in the report. Webinars & Events A nonprofit annual report that puts donors first focuses on how projects and programs were realized because of your supporters donations and time. In other words, be careful not to pat yourself on the back. Decide what content would be best shared via infographics and which one needs to be in the form of text. (410) 670-7880 See whos available to help and how much time they have. A nonprofit operating budget is a financial document that provides an overview of how a nonprofit organization is planning to spend its money. If youre really low on money, you can also use your phone. As weve mentioned before, your annual report is a chance to showcase all the good your nonprofit accomplished. The annual report for a nonprofit works well when it's used as a call to action. If youre new to the nonprofit space or are looking for a more effective way to communicate your annual report information, it can be useful to work off of a template. His growth-hacking abilities have helped Donorbox boost fundraising efforts for thousands of nonprofit organizations. A nonprofit annual report helps donors see exactly how their contributions made an impact in a given year. Well-rounded reports balance forecasting the future of the organization and establishing goals with reporting historical data and program information. Be prepared to compile a brief for your writer if you choose to do so. Its important that information is captured in a way that will interest the reader and show your progress. What makes a nonprofit annual report compelling? Let readers know that your supporters helped you reach (or even exceed) your fundraising goal and how their funds and support impacted your cause. For example, your annual report can focus on the many volunteers that donate their time to your organization: In the volunteer section of this report, the hospital focuses on recording statements from volunteers and displaying images of them helping patients. Today, more and more nonprofits are going paperless with their annual reports. However, since most donors wont take the time to do further research, provide enough detail so readers dont fill in the blanks with assumptions. This is the fun part. Technology doesnt always save money or time. There is always next year. In their annual report, Kiva clearly links their success/impact with the contributions of their supporters. If your annual report is going to be more than four pages long, a table of contents is a must, whether the report is digital or printed. Lets talk about how these and other features can help make your life simpler and your imact bigger. It also breaks down the nonprofit's operating expenses and overall costs. Today, more and more nonprofits are going paperless with their annual reports. First, every successful nonprofit annual report has a clear purpose and audience your organization needs to determine. Take the notion of showcasing your donor experiences one step further. Not only does this copy-heavy report run a mind-boggling 62 pages, but nowhere does it state the organizations mission. As a nonprofit organization, your 990 tax return is publicly available, and if donors want to dig deeper, they can. We're here to say that creating annual reports does not have to stink! 1001 G Street NW, Suite 700 East While your nonprofit report is all about highlighting your success, its important to be honest about your organizations progress. Work off of your Form 990 to provide this information. To show your appreciation in a more personal way, consider including stories about some of your major donors, or ask them to share what your mission means to them. How many copies will you produce? Pro tip: Out of all the photos that youll take throughout the year, only a few will make the cut. Purposes of a Nonprofit Annual Report Emphasize your organization's mission statement Express gratitude for your supporters and partners Showcase your organization's most successful initiatives Deliver financial transparency with detailed reports Demonstrate a clear impact Look ahead to the coming year What Should a Nonprofit Annual Report Include? Conveying your cause in a way that puts your readers in your beneficiaries shoes. The concise format allows readers to visit what interests them, and grasp the full picture of how donations translate to results. Did you know the top reason donors reconsider making a gift is that they do not clearly understand its impact? Your vision statement is a sentence that describes the future state your nonprofit is working towardin other words, what the world will look like when your mission is accomplished! Use these as a starting point. Thats why fundraising calendars are so important. She realizes her work made an impact on others and shares that with the Foundations friends. The nice thing about fancier annual reports is that they can be posted on your website to help raise visibility. It includes their financial performance and activities over the prior fiscal year. And, they're becoming increasingly necessary. They also do a great job presenting their model of change in a simple and understandable way. Sponsorship (Even famous investor Warren Buffett. By being honest about your challenges, as well as your accomplishments, your nonprofits annual report can help your organization generate more trust and gain more credibility. -Trevor Dickerson, Creative Director at New School. Benefits of Creating an Annual Report A listing of at least your major donors should be included, including foundation and corporate gifts. Their recent report opens with the theme Hope marches on and is followed by letters from both the National Commander (CEO) and the chair of the National Board of Advisors. Remarkably, some nonprofits dont bother producing an annual report. There is always next year. In print or online, a report is a de . This is who youre creating the report for. The Network for Good's Nonprofit Marketing Blog article titled " Top Five Questions About Nonprofit Annual Reports " states "a well-written annual report will help you demonstrate your accomplishments to current and future donors, cultivate new partnerships and recognize important people.". Interviewing supporters for their feedback. Especially if youre new to the nonprofit sector, it can be easy to make a few rookie mistakes when writing a nonprofit annual report. An annual report is a great opportunity to celebrate your accomplishments and share. Enticing call-to-action visuals invite you to scroll down the page. The report is structured as a regular website, which makes it easier for the user to navigate. Plus, it shows potential donors that your nonprofit can manage funds responsibly and effectively. These overachievers could be major donors, volunteers, or other supporters that helped your mission grow. Should your organization do the same? Usually, nonprofits have a page reserved specifically for providing annual reports and public filings over the years. Some types of businesses must prepare and file an annual report by . At its core, your annual report should persuade your audience to support your cause, but you might have smaller objectives (i.e., highlighting a new project or attracting more local sponsors) specific to your nonprofits goals. If your organization runs through the motions and produces a report because you always have, consider reexamining the purpose. If you want to know to create an infographic, heres a step-by-step guide by Visme. Everybody needs a reminder sometimes. Should your nonprofit annual report be a print or online version? All Rights Reserved. And once someone has had an emotional response to something, theyre much more likely to remember it. Under Katies leadership, nonprofit organizations have developed new programs related to free healthcare, affordable and accessible housing and literacy programs for K-12 students. From celebrating campaign success to sharing benefactor stories to producing financial transparency, your annual report is a snapshot of how you've supported your mission. Your nonprofits annual report might be the furthest thing from your mind right now. Thats why you should try to boil down all your activities to a few major achievements. Annual reports are essential to the success of any nonprofit. Nonprofit with gross receipts of more than $50,000 in the year must file the Exempt Organization Annual Information Return (FTB Form 199) (Instructions) - This is the State of California's annual return. Stories of mission impact are critical, but sharing stories of the board or team development and collaboration with partner organizations demonstrates your nonprofits interest in continuous improvement. While great content is very important, its crucial to pay attention to good design too. Join the 50,000+ nonprofits already raising funds online. Readers see a donate button up top at all times while moving through the report. . Please consult a professional (attorney, accountant, tax advisor) for the latest and most accurate information. Take advantage of the opportunity to get your impact in front of potential donors, corporate partners, and any others interested in your nonprofit. Some people who think of The Salvation Army as being a bit stodgy might be surprised to learn that the organization was a pioneer in digital annual reporting. Make sure that your committee is fully involved in all of the steps below, particularly the committees Chair and the Treasurer. Should your organization do the same? Dont fudge. Think How has your audience responded to your communications so far? Additionally, many nonprofits struggle to effectively leverage their annual reports once theyve put in the work to create them. Katie serves as the board president of Gracious Grounds, a housing organization serving individuals with disabilities. And always include information about how people can donate to your cause. Look through key interviews and reports to the board. Include your website URL, phone number, address, and social media handles so potential donors can continue to learn more about your nonprofit. How you further publicize it to your donors and stakeholders will depend on what you know about your audience. Who is taking photos or taking care of the visual aspects of the report? Each year, nonprofits use their annual reports to tell stories of social impact, celebrate their people, and share bottom-line results on financial stewardship. and storing the necessary information to retell them when it comes time to produce your next annual report. The causes of your setbacks (if you know what they are). Get started with your nonprofit annual report by including these top 10 elements. Volunteer ManagementVolunteer experiences that inspire. To ensure your annual report writing project is receiving the necessary attention throughout the year, consider forming an annual report writing committee. This nonprofit annual report is beautifully imagined and masterfully delivered. Additionally, direct readers to other ways they can get involved, including: The more opportunities you provide, the more likely theyll find a way to contribute that fits their interests. 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. Make your donors and volunteers the heroes of the story youre telling. What is a Nonprofit Impact Report? Here are five goals to pursue when developing a great nonprofit annual report: Traditional nonprofit annual reports focused heavily on financial performance and statistical data. The peer pressure factor is real, too. The Foundation also thanks its numerous corporate supporters. Nail your Organization's Tone and Voice. This goes beyond switching the language of your report to address your donors. The only document you are required to produce is an Annual Filing or a Form 990, which helps your organization maintain its tax-exempt status. In addition, they provide free legal assistance and training to prosecutors to assure animal abusers are held accountable for their crimes, support strong legislation protecting animals, fight laws harmful to animals, and offer opportunities to both legal professionals and law students to advance animal law. Below, find a very simplified version of how an annual report writing schedule/timeline could look like. What feelings do you want to convey in your annual report? Modern nonprofits often opt for a less-is-more approach to avoid overwhelming their readers, while still delivering concrete data and qualitative insights that leave a memorable impression. Discover the latest fundraising trends. And lots of aww-pictures of animals helps too! Or, create a flip book and embed it on your site. Type Nonprofits in the States The combined total revenue, filed by all tax-exempt organizations headquartered in the state during fiscal years ending in the. An annual report theme will also help you decide what makes the cut when it comes to the content; if its not relevant to the focus of the year, it doesnt go in. Also, think about the size of the report. 4. Based on these factors, make a decision about the format of your nonprofit annual report. Other Nonprofits. Keep your text relatively short and simple and rely on charts, graphs, compelling photographs, and other visuals to break things up and keep your annual report engaging. Ready to Get Started on Your Nonprofit Annual Report? However, if you want to produce an effective nonprofit annual report, you need to start early. Posted in Fundraising Marketing Design & Branding Leadership & Culture. As a nonprofit organization, your 990 tax return is publicly available, and if donors want to dig deeper, they can. Consider unique ways to shine light on those who make your work possible. Filing Method: Online. Take the. Another advantage of online reports! Infographics are becoming the norm, as are annual reports in the form of videos. . Even so, many nonprofit professionals dread writing them. An annual report is a great opportunity to celebrate your accomplishments and share with your donors, staff, volunteers, and other stakeholders everything you achieved throughout the year. You can come back and finetune this later. For example, for one annual report, the [unstated] theme was web, as in a network: we decided that underlying everything should be a feeling of connection and engagement. It empowers you to highlight your achievements and recognize everyone who has helped you along the way. Storytelling will first come through in your written copy, but the key to making your annual report a vibrant piece of communication is to spruce it up with great annual report photos. A creative design will allow you to engage with more of your audience and make a larger impact. Julia Reich of Stone Soup Creativeexplains: As a trained designer its easy for me to link business attributes with creative solutions. Enable your reader to easily identify their position in the equation (hopefully, under Support) and how necessary they are for it to work.
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