It can be hard to discern what should be included or excluded from an annual report, especially because every nonprofit has a different mission, audience, and intended impact. However, there are some fairly universal, basic sections that most organizations should include in their annual report.
1. The mission statement
Though this might seem obvious, it’s important to restate your mission statement to remind your readers of your ultimate goal, and what drives your work. Think of the mission statement as the backbone of the annual report, much like your mission statement is the foundation of your organization. Everything that will be included in the report will reflect a commitment to that mission.
2. Accurate financial data
While you don’t want to overwhelm readers with a list of numbers and statistics, it is important to include relevant financial information so that supporters can very clearly see how their money was spent in any given year. Consider organizing your financial data in a visually appealing way, for clarity—the easier this section is understood, the better!
3. Examples of impact
It’s important to include stories from the communities you’re serving, to show donors just how important their contributions are. This section could include stories, quotes, pictures, and testimonials from recipients or those impacted—it’s the perfect way to show your supporters why their contributions matter, instead of telling them.
4. Spotlights on donors, volunteers, and other supporters
The people that contribute to the success of your nonprofit—your donors, volunteers, partners, and more—want to feel recognized and celebrated. By including photos, their names (if appropriate), and their impact, your communities will feel like an integral part of your work.
5. Plans for the future
An annual report is an excellent way to generate excitement for the future of your work. After supporters have read through the bulk of your “year in review,” let them know what’s to come in the following year. Include goals, new ideas, or hopes for the organization. This helps readers to feel both connected with your mission and eager to watch your progress.
Every organization is different, so annual reports aren’t always consistent in their format and information—be sure to include anything that’s relevant to your work and audience!