03/15/10: Why Your Nonprofit Needs an Annual Report
In an economic climate where corporate and individual donors are cutting back, the annual report is now a crucial part of doing business for a nonprofit. Since nonprofits do not have shareholders, the annual report is not a detailed accounting statement—instead, it’s a yearly celebration of an organization’s accomplishments and an opportunity to tell a detailed story to donors and the public. In fact, in all of the reports I’ve designed, the financials typically only occupy two pages out of a 16-24 page total. This is not to say that the fiscal story is not important, but the annual report can serve a nonprofit in many unique capacities. What are some of these benefits?
1. The annual report is a pivotal way to reach out to donors—both past and present. It details successful programs and circles these programs back to the mission of the organization. Photos augment the story in a way that a simple financial statement cannot. The annual report reveals to existing donors that their contributions have made a difference and the money was well spent (and hey, why not give a little more?!). For potential donors, it tells the story that this is a serious organization that uses its money on initiatives that make a difference and actually work.
2. The annual report also provides an opportunity for the nonprofit to sit down and evaluate its programs by writing up success stories. Too often we are bogged down with work and don’t take a long look at what happened over a year. An annual report forces organizations to evaluate their work and see what worked and what didn’t.
3. Annual reports reinforce the brand. A consistent visual look keeps the nonprofit in the public’s mind. Whether you are rolling out a new look for your organization, or trying to maintain a consistent look year-after-year, the annual report puts a new visual twist on your organization’s face.
4. Annual reports do not have to be expensive! Some organizations save money by not printing the report at all, and just creating a pdf download accessible from their website. Eblasts encourage people to visit the site and download the report. Many organizations choose to do both, a pdf download and an inexpensive digital print run. This is an excellent way to cut costs but still tell a detailed story that cannot be told via the web.
5. Annual reports tell your board what’s going on “on the ground.” Board members play a key role in allocation of resources and planning. They usually are industry experts or people passionate about the cause, but the reality is that most board members are incredibly busy people who occupy a lot of roles in different companies and organizations. An annual report is a good way to summarize the year’s activities and tell board members how their contributions to the organization were executed by staff and volunteers.
6. People like to see their names in print. Really. Including donor lists and acknowledgements makes people feel proud of their contributions.
If you are interested in collaborating on an annual report this year, don’t hesitate to call me. Let’s tell your story!
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