Many nonprofit organizations send all their donors and other supporters exactly the same communication, such as appeal letters, thank you letters, and annual reports. One size doesn’t fit all and in the case of a 55 page (yes, that’s right) annual report I received a few weeks ago, the size was XXL.
I’m not a fan of these massive annual reports for any donor. My husband and I would be considered smaller dollar donors and I believe these reports are wasted on them.
You don’t have to do an annual report and if you do, it should be about one fifth the size at the most. I wrote about annual reports a couple of months ago, so I won’t rant too specifically on this.
Here’s another post that asks the question – Is This the Year to Trash that Annual Report?
To the organization’s credit, their annual report is visually beautiful. Maybe it’s a little too nice and I’ll get to that later. It includes several stories and many photographs. They did address how COVID-19 presented a number of challenges for their clients and community. They also mentioned their commitment to racial equity, since 80% of the people they work with are BIPOC (Black, Indigenous, and People of Color). It would have been clueless of them not to address these.
It’s clear the organization is very proud of their annual report, as evidenced by the opening line of the cover letter from the CEO – “On behalf of the entire X organization community, it is with great pride – and great appreciation for all our friends and supporters – that I provide you with this copy of X Organization’s Annual Report for 2020.” This is one of the few examples where they thanked donors.
It’s also clear they sent this annual report to all their donors and possibly potential donors instead of creating different types of reports for different types of donors. Here are a few things to keep in mind.
What do your donors want?
When we received this annual report, my husband’s first reaction was “I don’t want them spending our money on some fancy report.” Donors don’t always react well to something that looks too nice or expensive.
“Dale’s” mail (pt 4): everything else…
Since I’m not a typical donor and probably spent more time looking at this annual report than most smaller dollar donors, I know you do need to invest in a budget for donor communications. This organization has a large operating budget and reports that a majority of its expenses were program specific.
Think about how your donors would react if you sent them a huge annual report. Some are going to toss it right in the recycling bin or trash. Others may set it aside to look at later, realize they don’t have time to read it, and then pitch it. Others may flip through it, possibly annoyed that it’s so long.
Most of your donors should receive a shorter annual report.
Create different types of annual reports for different donors
Why are you producing an annual report? If it’s for your donors, you need to acknowledge their role in helping you make a difference. This annual report rarely does that. It’s very focused on the organization.
I always recommend a short annual report of no more than four pages or an infographic postcard for most of your donors. Smaller dollar donors deserve to feel appreciated, not inundated with a lot of information. You can create slightly longer reports for major donors and grant funders.
This organization has several different programs you can support or you can give to where it’s needed most. They could have sent separate short impact reports for their different programs. Maybe one to people who supported early education and another one for homelessness prevention rather than lumping it all into one big report.
Creating different types of annual reports may be more work, but it probably took a lot of work to produce that massive one. Since the organization has all the information anyway, they could have broken it down into smaller reports. They could also share some of the stories in their newsletters instead. Besides, is a little more work such a bad thing? Personalized donor communication usually pays off.
Write your donor communication in the second person
All your donor communication should be written in the second person using you much more than we. This annual report was written in the third person. You know what’s written in the third person – press releases and other promotional material. This annual report seems very promotional.
When you write in the second person you can write directly to your donor. Again, is this report supposed to be for donors? It doesn’t seem like it.
Nonprofit organizations often include an annual report when they submit a grant proposal. They may also bring one along when they meet with a major donor. Because they barely referenced their donors, this annual report seems more appropriate for potential funders.
Would it be so hard to include statements such as Thanks to you or Because of our generous donors along with a description of accomplishments (although not 40+ pages of them)? What’s the harm in giving an annual report like that to potential donors? Surely not as high as mostly ignoring current donors.
This happens too much
I see way too many examples of one size fits all communication. Organizations often send everyone the same appeal letter regardless of whether they are current donors, potential donors, or monthly donors. The same is true with thank you letters.
Donors also have different interests and reasons for giving. If you recognize this and send different types of communication to different types of donors, you’re letting them know they matter.
Segmenting Your Donors is More Important Than Ever
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