How to Create a Better Annual Report

19523182406_27b919a580_zIt’s annual report season, for better or for worse. Often it’s for worse since many of them are long, boring booklets that put your donors to sleep.

You don’t have to do an annual report, but you do need to share accomplishments with your donors. You may opt to nix the annual report and send short progress reports a couple of times a year or monthly e-updates instead.

If you decide to do an annual report, I encourage you to move away from the traditional multi-page one. These take a lot of time to produce and there’s no guarantee your donors will read it. Aim for something no longer than four pages.

Here are a few things to keep in mind to help you create a better annual report.

Your annual report is for your donors

It’s not for your board and you don’t have to do it the same way you’ve always done it – no more massive, boring booklets.

You may want to consider different types of annual reports for different donor groups. You could send an oversized postcard with photos and infographics or a two-page report to most of your donors. Your grant and corporate funders might want more detail, but not 20 pages. See if you can dazzle them with no more than four pages.

One way to shorten your annual report is to not include a donor list. The Annual Report Donor List is a Stupid Waste of Time If you feel you must have one, put it in on your website.

Show your donors how much you appreciate them

Donors want to feel good about giving to your nonprofit. Think of this as a gratitude report.

Focus on thanking your donors for their role in helping you make a difference. Get inspired by some of these examples from Agents of Good. Annual/Gratitude Reports 

How are you making a difference?

The theme of many annual reports is look how great we are. Are You Bragging Too Much?

They also include a bunch of boring lists, such as number of clients served, You need to share specific accomplishments that show how you are making a difference.

Focus on the why and not the what. Something like this – Thanks to you, 85% of the students in our tutoring program are reading at or above their grade level and now have a better chance of graduating from high school on time.

Tell a story

Donors love to hear about the people they’re helping. You can tell a story with words, a photo, or a video. Share a success story. For example – Jeremy, a fourth grader at Clark Elementary School, used to get a pit in his stomach if he had to read aloud in class. He struggled with the words and hoped no one would laugh at him. Now after weekly tutoring sessions with Kevin, one of our volunteer tutors, his reading is much better and he doesn’t dread reading time.

Make it visual

Your donors are busy and don’t have a lot of time to read your report. Engage them with some great photos, which can tell a story in an instant. Choose photos of people participating in an activity, such as Kevin helping Jeremy with his reading.

Use colorful charts or infographics to highlight your financials. This is a great way to keep it simple and easy to understand. Sprinkle in quotes and short testimonials to help break up any text.

Be sure your report is easy to read. Use at least a 12-point font and black type on a white background. A colored background may be pretty, but it makes it hard to read.

Write as if you’re having conversation with friend

Go jargon-free. Most of your donors don’t use words like underserved or at-risk, and neither should you. Use everyday language such as – With your help, we found affordable housing for over 100 homeless families. Now they no longer have to live in a shelter, a motel, or their cars and have a place to call home.

Write in the second person and use a warm, friendly tone. Of course, use you much more than we.

For more information on creating a better annual report, I encourage you to take time to watch Kivi Leroux Miller’s great webinar Go Short with Your Annual Report

 

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One thought on “How to Create a Better Annual Report

  1. Thanks for sharing. You’re one of my sources for research.

    On Wed, Jan 25, 2017 at 1:21 PM, Ann Green’s Nonprofit Blog wrote:

    > Ann Green posted: “It’s annual report season, for better or for worse. > Often it’s for worse since many of them are long, boring booklets that put > your donors to sleep. You don’t have to do an annual report, but you do > need to share accomplishments with your donors. You may” >

    Liked by 1 person

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