Who is this article for?
A nonprofit, tax-exempt charitable organization needing to prepare an annual report.
An annual report is prepared every year and sent to your nonprofit’s members, donors, and supporters. An annual report shows organizational transparency and helps build trust with donors and the general public. In addition, a well-written annual report can build loyalty and help cultivate new sponsorships and donors as it states your mission and communicates your progress.
Basic items to include:
- Message from the Executive Director
- Mission, Vision, and Values
- Program updates for the year (include any difficulties or challenges experienced for transparency)
- Financial statements
- A special message of gratitude to supporters, donors, volunteers, and sponsors
- Future plans
Recommended to include:
- Photos, videos
- Infographics
- Interviews or direct quotes from donors, beneficiaries
Best practices:
- Make it short, simple and easy-to-read
- Follow your branding
- Be candid, honest, and transparent in the report
- Acknowledge both the highs and the lows of the year
- Include insights from data, and not just the data itself
- Proofread and edit before presenting the report during the annual meeting
- It should also be easily accessible for anyone to read
For addititional guidance on compliance see our US Nonprofit Charity Compliance Checklist.