There are many annual report examples that are comprehensive and accurate. But, they often fail to effectively communicate dense material.
One way to communicate dense material in an impact report or an annual report is through data visualization. Or, the graphic representation of data. In the nonprofit world, data visualization refers to any metrics (expenses, revenue, etc.) that are represented using graphics. Think charts, graphs, and more.
Why is data visualization important for annual reports?
Have you ever opened a textbook or board report that’s packed with complicated metrics? If so, you probably took one look and felt overwhelmed and disinterested. In fact, you may have completely stopped reading.
When organizations don’t focus on data visualization, readers can feel disconnected and confused. In the nonprofit world, that leads to poor supporter loyalty and low donor retention rates. If your audience can’t understand your metrics, they’re unlikely to support your cause.
Attention spans are short and readers often get overwhelmed by dense material. But, building pie, line, or bar graphs, for example, to showcase your data, will entertain readers and keep them focused on your findings.
To really see successful data visualization at work, let’s take a look at a few annual report examples that nail it:
In this example, the Jewish Federation is reporting some key financial metrics. Mainly, their total revenue and services throughout 2018. Each of these categories is full of more granular information. Their expenses often include administrative costs, program expenses, and more. And much is the same for their revenue which includes major donations, peer-to-peer fundraising, and more.
This annual report, unlike others, does the work for readers so they don’t have to.
What we love about this annual report:
- This nonprofit used a pie chart to show different categories of expenses and revenue
- Their data visualization is interactive. It allows readers to scroll over the categories and learn more about them
- The data has minimal writing which allows readers to scan the information quickly
Supporters don’t need to be bogged down by specific data. They need to understand a holistic picture of your financials. In the case of the National Foundation for Infectious Diseases, their expenditure is broken down into two broad categories (as seen above).
What we love about this annual report:
- It prioritizes simplicity for ease of reading
- It allows readers a comprehensive understanding without bogging them down with unnecessary information
- It’s eye-catching and uses appropriate brand colors. Both of which help to reinforce the organization’s story
Most people consider data visualization to go hand in hand with financial metrics. But, data visualization can also be a useful tool when it comes to illustrating other metrics. In the case of WWF, their organization created a comprehensive timeline to showcase ongoing harm to tigers.
WWF could have explained the progression through a series of paragraphs. Instead, this timeline allows readers to better understand the exact progression through visuals.
What we love about this annual report:
- The timeline allows readers to see the “big picture”
- The reading experience interactive, guiding the audience through the timeline
- It distills complex information into bite-sized facts
When creating your annual report, focus on creating an enjoyable, interactive experience for the reader. By using free chart-building tools, and making your report digital, you’ll make readers feel more connected to your mission than ever.