Annual Reports 101: For Nonprofits/Public Charities 

 Annual reporting season is among us, and you may be wondering if your organization should publish one. At BV, the answer to this question is always YES! Not only are annual reports a great way for people to see the good your organization does, but they are also an opportunity to potentially attract more donors and funding. 

Your annual report will include information about your organization's mission, accomplishments, and finances. A great way to start the report is with a letter from the CEO and/or Chairperson summarizing the year and thanking donors. It is crucial to show gratitude for all those that help you continue your mission. Opening with a warm, insightful letter inclusive of thanks sets the tone.  

 

Next, you should identify your accomplishments in the past year with emphasis on key programs, partnerships and IMPACT. This is the place for you to show the world exactly what you’ve been up to. Tangible accomplishments may be large (breaking ground on a new building) or more modest (hiring a new Program Director). If it is one of the top actions that helped you to fulfill your mission and goals, consider including it.  While you should distribute relevant photos throughout the report, this is a perfect space to include images of your organization in action. In addition to photos, having impact statements and quotes from participants and donors are also a nice touch! 

 
Including your finances is also an important part of this project. Clearly displaying your funds and their respective sources not only gives your organization credibility but also a strong sense of transparency. This can be done by including charts and graphics that highlight your bottom lines. 

Finally, be sure to acknowledge your donors, funders, in-kind partners and volunteers. List donors and funders by name, confirming preferences and spelling. Follow the donor preference rather than a set format for listing names. Name preferences and format matter to donors. You can break this section down by size of contribution, contribution area or type of funding. For example: Capital Campaign or Endowment gifts may be listed separately from General Operating Gifts. Similarly, Legacy Gifts or Bequests may be listed under a certain Donor Recognition Society.    

There are several formats to choose from when creating your annual report. Organizations typically have a PDF version linked for easy access on their website. More recently organizations have shifted to even creating separate websites and webpages dedicated to their annual report. While many organizations have gone digital, BV still recommends printing copies and mailing them to key donors and foundations. Receiving a physical copy adds a personalized touch and further sparks interest in your organization’s cause.  

 

Here are some examples BV’s clients and their awesome annual reports: