How to Write an Annual Report for a Nonprofit: The Ultimate Checklist

Want to know how to write an annual report for your nonprofit organization? Then you’re in the right place. In this blog post, we’ll outline all of the sections included in a great nonprofit annual report. Think of this framework as the ultimate checklist for writing and designing the best annual report possible.

Before we jump in, let’s address some major questions.

Do all annual reports need to look the same?

Nonprofits are all different. Some are small charities and others are huge national organizations. Other nonprofits are hospitals, while others are education and advocacy based. Some focus on peer-to-peer fundraising and others rely only on federal funding. Plus, each annual report should have its own theme, based on the organization’s mission and values.

Because nonprofits vary in their day-to-day operations, most nonprofit annual reports do not look the same. While there is a basic structure that most organizations should follow (hence, the reason for this blog post!), every charity’s report is going to look a bit different from others in the industry.

What format should my nonprofit annual report be in?

While there is no “right” medium for your annual report, using free digital software is usually the best bet. Going digital with your annual report allows you to include interactive elements like videos, donation links, and graphics. Plus, it makes your annual report shareable on social media.

Choose a software that allows you to create an annual report template for years to come. That way, you’re not reinventing the wheel year after year.

Now that we’ve covered the basics, let’s get into how to write an annual report for a nonprofit. Namely, all of the necessary sections for your yearly review.

The nonprofit annual report checklist

Cover photo/design
Table of contents
Message or letter from leadership
Statement of mission and values
Accomplishments
Impact stories and testimonials
Accurate financial data
Volunteer and donor recognition
Staff and board lists
Future goals
Contact page

Though the above list is a great starting point, it’s necessary to dig into more of the details—keep reading!

1. Cover photo or design

how to write an annual report for a nonprofit

Every great annual report needs a cover design. Like any great brochure or book, your annual report should have a title and an eye-catching visual element. Consider using a photo of your staff, beneficiaries, or a royalty-free stock photo.

Make sure your organization’s name and logo (if you have one) are front and center. No matter where your annual report ends up, your audience should know exactly what they’re about to read.

2. Table of contents

Unfortunately, not everyone will have time to read your annual report from front to back (though we wish they would!). In order to deal with this, be sure to include a table of contents so readers can jump to whatever section they’re most interested in.

This will prevent readers from feeling frustrated, or endlessly scrolling through your annual report without finding the answers they want. Focus on your supporters’ time and be sure that every piece of information is labeled and easy to locate.

3. Message or letter from leadership

A fundamental part of any nonprofit annual report is a letter or message from the organization’s leadership. Whether that leadership is the executive director, the founder, or a senior board member, most nonprofits include an introduction from one of their key staff members.

Usually, this letter addresses the readers, the communities the organization serves, and those that have supported them throughout the year. Think of this letter as an introduction to a book, or an author’s note. In this letter, the “author” (charity) is speaking directly to the readers and introducing them to the annual report.

The inclusion of this element makes your annual report feel professional and trustworthy. Plus, it helps to set the tone for the rest of the content to follow.

4. Statement of mission and values

Though we assume that most of our supporters and donors know what our mission and values are, that’s not always the case. When writing your annual report, make sure to cover all the basics, including who you are as an organization. Remind supporters of what you value, and what your goals are—and why.

This not only refreshes the minds of some of your consistent supporters but also introduces you to potential new readers. And, hopefully donors.

5. Accomplishments

One of the biggest components of any annual report is the inclusion of program and initiative updates. When supporters donate to your cause, they want to know exactly what kind of impact their contributions have had. That’s where this section comes in.