What Should a Nonprofit Annual Report Include?
An annual report typically includes a detailed presentation of a company's finances for investors and business executives. A nonprofit organization does not keep money for a profit, so an annual report will have a different focus. A nonprofit annual report is more likely to be a tool for attracting potential donors and presenting the achievements and accomplishments of the nonprofit organization.
Other People Are Reading
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Outline Accomplishments
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Nonprofit organizations frequently use the money that would be a profit to help out people or animals in need. People want to know how the organization is helping out and its accomplishments during the year in question. For example, people want to know how donors' money is helping out starving children, education systems in foreign countries or finding cures for diseases. Since people are donating money for the cause, they want to see how the nonprofit organization is spending their funds on something productive or educational that benefits the public or those in need.
Providing the Proof
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Highlighting the nonprofit's accomplishments may not be enough for readers and donors. The annual report could include pictures of children or animals that the organization has helped, along with a short story and a quote, if possible. For example, the nonprofit organization may have helped build a school in a third world country. Pictures of the construction process and children in the classroom will highlight this achievement. Quotes can be directly from the children or from teachers.
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Budget Breakdown
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Even though a nonprofit organization does not show a profit, readers still expect to see how the organization is spending the money being donated by the public and companies. Charts and graphs that break down the budget will show the reader how much the nonprofit organization needs to operate, how much is being spent on projects and how much is being donated each year.
List of Donors
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Companies that donate money frequently to the nonprofit organization and individuals who make generous donations often want some type of recognition for their help and donations. A list of the donors in the annual report will give them such recognition. This is also an indirect method of marketing the nonprofit organization's success and role in the community.
Offer Options for Help
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The annual report should finish by offering methods that people can use to donate money to the organization. This can include phone or website donations. If any events are scheduled, where representatives will be on location, mention these in the annual report so that donors or potential donors can make the time to come out and support.
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