Let’s face it: your annual report can easily become just another item on your long to-do list, overshadowed by more pressing tasks. However, it’s far more than just a best practice or a mandatory document—it’s your nonprofit’s superhero origin story. It’s where you show the world how you’re battling big problems, one program at a time.
If you’re getting ready to create your next annual report but don’t quite know how to start, you’re in the right place. We’ll go through the basics of an annual report and how to make it work for your mission (plus a resource for you at the end!).
What Your Nonprofit Annual Report Is (And Isn’t)
Your annual report shouldn’t just be a financial statement with some pretty pictures—no, it’s so much more.
An annual report serves multiple important roles for your organization:
- Your impact megaphone, shouting about your wins (with concrete data to back them up) and even the challenges you’ve overcome
- Your transparency tool, showing you’re trustworthy with those donor dollars (donors love this)
- Your donor retention tool, keeping supporters engaged and excited for what’s next
- Your thank you card, acknowledging the heroes who make your work possible
- Your rallying cry, reminding your staff, volunteers, and community (and yourself!) why the work matters
In other words, your annual report is the Swiss Army knife of your nonprofit communications.
Read more: How to Thank Donors: Create an Awesome Donor Thank You Card
Annual Reports vs. Impact Reports: Are They the Same Thing?
They might sound similar, but annual reports and impact reports have different jobs. Annual reports are the whole shebang: financials, donor lists, and comprehensive updates. They typically cover an entire fiscal year and are often required for legal and transparency purposes.
On the flip side, impact reports are laser-focused on program outcomes and beneficiary stories. They can cover specific projects or timeframes and are great for mid-year updates or campaign-specific reporting.
Tip: Why not combine the best of both worlds? Create an “Annual Impact Report” that ticks all the boxes while keeping the focus on your mission’s impact.
Read more: 8 Best Nonprofit Impact Report Examples: A Guide to Creating a Standout Annual Report
Who’s Actually Going to Read This Thing?
You might be surprised! Your nonprofit annual report has a bigger audience than you think.
Donors, both big and small, want to see their investment at work.
Foundations and grantmakers are looking for proof that you can handle their funding responsibly.
Alumni are excited to see how their universities’ initiatives effectively empower new students and future leaders.
Your board members need motivation to be your biggest cheerleaders, while volunteers and staff want to see the big-picture impact of their day-to-day work.
Corporate partners are looking for worthy allies for their CSR initiatives, and media and influencers are hungry for stories and data they can share.
And don’t forget potential supporters—first impressions count, so make yours awesome!
Best Practices: Turning Good Reports into Great Stories
While facts are important, stories are truly unforgettable. Focus on a strategy that weaves together personal experiences with your organization’s broader impact. Here are some tips for creating your best annual report yet:
Acknowledge Your Mission’s Heroes
Begin by identifying your heroes—the beneficiaries, staff, volunteers, and donors who embody your mission. They are the narrative anchors that will bring your impact to life.
Structure their stories carefully, following a classic arc of challenge, journey, and outcome. Start with an attention-grabbing hook—a surprising statistic or thought-provoking question—and conclude by connecting the individual’s experience to your organization’s larger mission.
Skip the Jargon (Embrace Visual Storytelling Instead)
As you develop your narratives, embrace the principle of “show, don’t tell.” Use vivid, descriptive language to create a clear picture in your reader’s mind.
Add direct quotes to bring authenticity and give voice to your heroes. Enhance these written accounts with relevant photos or videos, creating a multi-sensory experience that pulls your audience into the story.
Speak to Your Audience’s Heart and Mind
Throughout your storytelling, maintain a balance between emotional appeal and factual support. Follow personal narratives with relevant statistics to show how individual successes contribute to your overall impact.
By crafting your nonprofit annual report around these carefully constructed and thoughtfully relayed narratives, you create a document that does more than report facts—it tells the living, breathing story of your organization’s impact in the world. Remember: you want your report to not just be informative but also truly unforgettable.
Don’t Leave ‘Em Hanging—Look to the Future
Your annual report isn’t just about looking back—it’s about inspiring action for the future. Here’s how to craft calls-to-action (CTAs) that get results:
- Cut the fluff and get straight to the point. “Donate Now” packs way more punch than “Consider Making a Contribution.” Your readers shouldn’t need a decoder ring to figure out what you want them to do next.
- Make it real. Show them exactly what their action means. “Your $50 feeds a family for a week” paints a picture that a generic “Please Donate” button just can’t match.
- Let your CTAs steal the spotlight. Use eye-popping colors, bold fonts, or even some digital razzle-dazzle for online reports. Your CTA should be harder to miss than a neon sign in a dark alley.
- Serve up a few engagement options. Some people might be ready to whip out their wallets, while others might prefer to roll up their sleeves and volunteer. Throw in a social media share button for the clicktivists. Cater to all appetites for do-gooding.
- Sprinkle those CTAs throughout your report like confetti, not just at the finale. Just finished a heart-tugging story or shared a jaw-dropping statistic? That’s prime real estate for asking for support.
FAQs
How do I make a nonprofit annual report?
Gather your year’s key data and achievements. Organize it into clear sections, craft a compelling narrative, and design it to be visually engaging. Keep it informative yet accessible for your audience.
Need more guidance? Check out our guide on crafting unforgettable annual reports.
How do you write an annual report for a charity?
Start with a punchy intro highlighting your mission and key wins. Include sections on programs, finances, and future goals. Mix storytelling with transparent data, and end with a clear CTA.
How do you organize a nonprofit annual report?
Structure it like this: Introduction, Mission Statement, Achievements, Financial Overview, Future Plans, and Acknowledgments. Use clear headings and add visuals to boost understanding.
What is the difference between an annual report and an impact report?
A nonprofit annual report gives a comprehensive yearly overview, including financials. An impact report zeros in on the outcomes of your programs, showing how you’re making a difference. But hey, nobody says you can’t create both in one document!
What is typically included in an annual report?
You’ll want your mission, key achievements, financial statements, future plans, donor recognition, and CTAs. Think of it as your year’s highlight reel with a dash of number-crunching.
Download this resource we created for more info: The Ultimate Guide to Crafting Nonprofit Annual Reports
How long should an annual report be?
Aim for 24 pages or fewer, depending on the content. Keep it focused and interesting—detailed enough to be thorough but concise enough to hold attention.
Let’s Make Your Annual Report Shine!
Creating an awesome annual report isn’t just about ticking boxes. It’s about telling your story in a way that gets people excited about your mission.
Remember: design matters. It’s not just pretty—it’s strategic. Stories sell, so don’t be shy about sharing the human side of your work. And above all, keep it clear. Ditch the jargon and speak from the heart.
Need a more detailed guide? Grab The Ultimate Guide to Crafting Nonprofit Annual Reports to help you create your best, most impactful report yet.
And if you’re looking for a strategic design partner to turn your data and stories into a fully polished and professional annual report, we’ve got you there, too! Our 2-Week Annual Report Design Intensive will transform your impact metrics into a compelling story that moves donors and those you serve to action.
Happy reporting!
