In this blog we’ll cover:
- What a nonprofit impact report is
- Why impact reporting is important for nonprofits
- When and why nonprofits need an impact report
- How to write a nonprofit impact report
- Best practices for a nonprofit impact report
- Examples of nonprofit impact reports
Now, let’s jump in!
What is a Nonprofit Impact Report?
An impact report measures a specific initiative, program, or event. Usually, this measurement occurs over a certain amount of time (usually, less than a year). A nonprofit impact report analyzes and assesses the successes (or failures) of such efforts. It ties an organization’s work, and the contributions they received, to outcomes. Creating an impact report is an essential tool for any nonprofit looking to maximize their reach and make a lasting impression. With the right narrative and design, nonprofits can effectively showcase their successes and inspire others to get involved in their cause. But that’s not all – stay tuned as we explore the benefits of creating an impact report in the next section!
Let’s look at an example: An organization introduces a new program. This program aims to provide new financial literacy courses to a specific population over the span of 6 months. The impact reporting on this program would analyze the contributions the organization received. And, how they implemented their plan, and what the outcomes were. While impact reports usually include a few key sections, they tend to follow this structure (we’ll get into details later!).
There is no expectation for how many impact reports a nonprofit should publish, or how often. But, many conduct impact reporting on a regular basis. Whether bi-annually, quarterly, or monthly, every nonprofit handles impact reporting differently. Usually, this depends on the audience and programming.
Impact reports can take a variety of formats. They can be printable brochures, slideshows, or digital reports. For this blog, we’ll focus on digital reports as they’re one of the most effective methods for impact reporting. A digital report allows your organization to disseminate and share findings with ease. And, it allows you to get creative with storytelling.
Traditional vs. Interactive Reports
When it comes to telling a powerful story about the impact of a nonprofit, traditional reports and interactive reports can be used for different purposes. Traditional reports provide an in-depth look at quantitative data and are well-suited to share progress and success stories. On the other hand, interactive reports have the advantage of conveying information in an engaging way that captivates readers. They also allow nonprofits to use multimedia elements such as videos, animations, and charts which can bring more life to their message.
No matter which type of report is used, visuals should be carefully chosen to support the content and create a cohesive experience for readers. Furthermore, by utilizing tools like hyperlinks, popups, and data filters, nonprofits can create an interactive report that will keep readers engaged while providing them with more relevant information.
Ultimately, both types of reports allow nonprofits to accurately convey their successes and progress in a meaningful way. By taking into consideration both traditional and interactive elements when creating their impact report, nonprofits can effectively communicate their message and engage potential supporters in a powerful way.
Now that we’ve covered what an impact report is, let’s dive into why it’s important.
Why is Impact Reporting Important for Nonprofits?
Impact reports, like annual reports, let supporters into your mission. While they’re not required of nonprofits, they do help organizations in lots of ways.
While every organization has different goals, successful impact reporting:
Encourages donor retention
When nonprofits can showcase their effectiveness, donors are more likely to continue giving. It allows them to feel confident in their contributions and your mission.
Helps track progress and achieve goals
Not only is impact reporting great for external use, it’s also great for internal operations. Impact reporting allows organizations to track their progress and reach set goals.
Communicates your mission and values
Measuring the impact of specific programs helps to communicate your organization’s mission. Instead of telling supporters what your mission is, an impact report allows you to show them.
When and Why do Nonprofits Need an Impact Report?
Nonprofits are organizations that provide services to the public and operate independent of any government support. To ensure they are meeting their mission and goals, nonprofits need to be able to measure their effectiveness and impact. An impact report is a key tool for assessing a nonprofit’s success in these areas. n 2023, writing an impact report will be more important than ever before. As more stakeholders seek to donate to organizations they trust, impact reports will become even more essential in 2023.
Ready to tackle your own nonprofit impact report? Check out what the include in yours, and how to do it.
What to Include in a Nonprofit Impact Report
While the contents of impact reports can vary, include some of the above, most include the following few basic elements:
Table of Contents
Creating a Table of Contents for an Impact Report is essential in order to clearly communicate all the information included in the report. A Table of Contents should include all the sections that are present in the report, such as income statements, balance sheets, accounts receivable/payable, cash flow statements, and statement of activities. This will allow readers to quickly identify which topics are covered and how they relate to each other. Additionally, it will provide an outline for the reader so they can track their progress through the document. By creating a comprehensive Table of Contents for an Impact Report, nonprofits can ensure that their financial performance is accurately communicated and easily understood.
Mission Statement
The mission statement is the driving force behind any nonprofit organization. It outlines the goals and objectives of the organization, and serves as a guiding light for all its activities. The mission statement should clearly communicate why the organization exists, what it does to achieve its purpose, and how it will measure success in doing so. It should also be concise yet comprehensive enough to inspire others to join in the cause.
A well-crafted mission statement communicates an organization’s core values and vision for the future. This helps donors understand how their contributions are being used to make a difference and provides transparency into how decisions are made within the nonprofit. Ultimately, a powerful mission statement can be a powerful tool in motivating people to give back, while helping ensure that every dollar contributed is being used effectively towards achieving desired outcomes.
Donor Listing & Major Gifts Recognition
Donor listing and major gifts recognition are essential elements of any nonprofit impact report. Showing appreciation for those who have given their financial support to the organization is a great way to encourage further giving and can be included in the donor list section. This section should thank each and every donor, no matter how large or small the gift, for their generous contribution. Additionally, major donors should be listed separately from other donors and given special recognition for their commitment to the organization’s mission.
By highlighting these donors in an Impact Report, nonprofits can demonstrate to potential supporters that there is strong engagement with the cause and that their donations will make a real difference. Furthermore, including stories about how individual donations have been used to help achieve specific goals can be a powerful way of showing readers the tangible impacts of their generosity. Lastly, don’t forget to include calls to action throughout your Impact Report; this will inspire readers to join in supporting your cause!
Financial Transparency & Credibility
Financial transparency and credibility are essential components of a successful nonprofit impact report. By providing straightforward information about the organization’s finances and progress, nonprofits can demonstrate their commitment to accountability and good stewardship of donor funds. This helps to build trust with donors and show them that their contributions are being put to good use.
In order to achieve financial transparency and credibility, nonprofits should include detailed financial statements outlining how donations were used, as well as any measurable success stories that demonstrate the organization’s progress. Additionally, they should strive to provide clear explanations of complex financial concepts such as budgeting and fundraising strategies. By doing so, nonprofits can give donors confidence in their ability to manage funds responsibly and understand the impact that their contributions have made.
Now that we’ve covered what an impact report should entail, let’s dig into how to write one.
How to Write a Nonprofit Impact Report
1. Decide the goals of the impact report
No two impact reports are the same. When deciding to create one, first consider what your intent is. Ask yourself:
- What does our organization want to report on?
- Why is it important to report on this?
- What do we want to showcase in this report?
- Who is our target audience?
- What do we want to achieve by conducting this impact report?
Once you’ve answered these questions, your organization should have an idea of what your goals are.
2. Enlist the right stakeholders
Creating an effective impact report takes a team. Consider whom you might need to confer with to create and publish the report.
Possible stakeholders include:
- Beneficiaries
- Staff members
- Executive directors
- Volunteers
3. Gather necessary information
Once you’ve completed the above steps, it’s time gather the necessary information. To do so, consider:
- What statistics do we need to convey our impact?
- Do we need qualitative data, quantitative, or both?
- How can we organize this data to make it digestible to the average reader?
4. Determine medium
As mentioned, impact reports can take a variety of formats. Common formats include:
- Printed brochures or pamphlets
- Slide decks
- Mobile-friendly, digital reports
- Newsletterr
When choosing a format, be sure to select one that’s easy to publish and disseminate.
5. Layout the design
Once you’ve gathered all the right information and help, it’s time to start laying out the details. Consider how you might include:
- Your organization’s brand and style guide
- interactive video elements, if applicable
- Compelling photos
- Infographics and charts
- Social media integration
- Custom donation links
By using software like Yearly, nonprofits can incorporate all of the necessary information in a reader-friendly way.
6. Choose your nonprofit impact report template
With digital report builders, nonprofits can use a variety of templates to create their impact reports, so they never have to start from scratch. From bold design to more minimalist layouts, templates are a great way to save time and energy on your next digital report. Drag and drop images, infographics, and more right into your report.
7. Publish and disseminate
Then, share your impact report once you’ve laid out and created it. Post it on social media, send it out in an e-newsletter, or post it to your website.
Best Practices for Writing a Nonprofit Impact Report
No matter your goals, every nonprofit impact report should follow a few best practices.
When writing your impact report, focus on:
Interactivity
One of the best ways to engage donors, and make them interested in your findings, is to make your report interactive. To do so, include custom donation links so donors can contribute right from the report. And, embed videos and social media posts to add context to your program, goals, and outcomes. Each of these elements will help your organization tell a story.
Scannable content
Impact reporting can include lots of dense material. And supporters often don’t have the time to read the entire report. That’s why it’s important that nonprofits take the time to make the material easy to read.
Jargon-free writing
Like making the text scannable, it’s crucial to write without industry jargon. When writing your impact report, make sure it’s understandable to anyone that picks it up. Make the text simple and straightforward.
Data visualization
Impact reports usually include lots of statistics and metrics. That’s why it’s crucial that nonprofits organize these numbers into infographics or charts. By using digital tools, nonprofits can create charts and graphs for their readers.
Calls to action
Calls to action are an essential part of any nonprofit impact report. They provide readers with clear instructions on how to support the mission and objectives of the organization. A call to action should be integrated into each section of the report, as it serves as a reminder for readers that their financial support is needed and appreciated. Furthermore, calls to action should be tailored to meet the specific needs of the organization, such as donations, volunteer opportunities, or outreach events. By including meaningful calls to action in an Impact Report, nonprofits can ensure that their message resonates with readers and encourages them to take action.
Formatting and design
An impact report is a vital tool for nonprofits to accurately and effectively convey their successes and progress to potential supporters—and reiterate their brand identity. By utilizing effective formatting, design, and visuals, nonprofits can create an impactful report that will leave a lasting impression on readers.
When formatting and designing yournonprofit impact report, there are several key elements to consider. First, the overall layout should be visually appealing and easy to read. A good way to achieve this is by using color, bolding, and italicizing certain words or phrases for emphasis. Additionally, font size should be consistent throughout the report and fonts chosen should reflect the organization’s branding. Furthermore, make sure that all images included in the report are of high quality and relevant to the content. Lastly, providing plenty of white space allows readers to easily distinguish between sections and makes for an aesthetically pleasing document. By taking these formatting considerations into account when designing an Impact Report, nonprofits can successfully communicate their message and engage potential supporters in a powerful way.
Emotional connection & storytelling
The power of storytelling lies in its ability to create an emotional connection with readers. Nonprofits can use this to their advantage when creating an impact report to help engage donors and supporters on a deeper level. Interactive reports, in particular, are better suited to demonstrate the true impact of a nonprofit’s work.
For example, powerful visuals such as videos, photos, and infographics can be used to share personal stories from those impacted by the organization’s efforts. This allows donors to gain a better understanding of how their contributions make a difference. Additionally, nonprofits should focus on weaving in facts and figures into their story in order to effectively communicate their successes and progress.
By utilizing emotional connection and storytelling when creating an impact report, nonprofits can give readers a sense of connection that will motivate them to become engaged supporters of the cause. Through powerful visuals and compelling narratives, nonprofits can create an impactful report that successfully conveys their message while inspiring donors to take action.
Need more inspiration? Check out these examples!
Ready to create a nonprofit impact report for your organization? Get started for free with Yearly’s free trial!
Josh Kligman is the CEO of Yearly, a platform for nonprofits to create their own digital reports. Josh has been working with nonprofits on annual reports, brand and partnerships since 2011. He is helping nonprofits create more engaging, digital annual and impact reports with Yearly. Throughout his career, Josh has helped launch and run nonprofit brand campaigns and media partnerships nationally and locally, using television, radio and web, to amplify the reach of campaigns and provide demonstrated value for non-profit stakeholders. Josh received his B.A. from American University in Communications and his M.B.A. from American University in Marketing Management and Entrepreneurship.