Happy new year, 

  

Tina Cincotti

  

Which of these best describes your annual report? 

 

Option #1 -- It starts with the oh-so-boring letter from the Executive Director and, if you draw the short straw, you get another snoozer -- a letter from the Board Chair.  The main points of the report are all the amazing things your organization did. The donor is relegated to a list in the back with a cursory nod of thanks. Every possible statistic from the past year is presented alongside dry program descriptions that could have been lifted from a grant proposal. Oh yeah -- and it's looong.

Behind door #2 -- It's a compelling overview of what your supporters made possible -- full of accomplishments, impact and gratitude. The emphasis is on how amazing your donors are. Your readers are taken on a journey. There are stories, photos, and more stories. It's short. It's personal. And it's interesting. Perhaps it even pushes the envelope a little bit.
Which one would you read?

The primary purpose of your annual report is to show your donors what they've accomplished in the past year by investing in you. Supporters trust that you'll use their money to get results, to make an impact they couldn't achieve on their own as one individual.

Your annual report is where you show them how right they were to support you. It's where you prove you were worthy of their trust.

So, how exactly do you pull this off?

Here's what I recommend:

• Keep it short.  Do you want to read a 16-page annual report? Or perhaps a more relevant question is this -- do you want to write, produce, print and mail a 16-page annual report? I don't. Let's aim for four pages. Maybe six. And if those 4-6 pages aren't good, no one is going to want to read them any more than the aforementioned 16 pages. Now what exactly does "good" mean?  Keep reading...

• Focus on accomplishments. Not activities... accomplishments. Your donors are far less interested in what you did than (activities) what the results were (accomplishments). For every item you think to include, ask yourself, "So what? To what end?" Once you have a real reason why I should care, that's your accomplishment.

• Use stories, not statistics. I know, I know...I've said it before. Too many still aren't listening so I'm saying it again. Your supporters don't understand your numbers. You do because you know the context. You live and breathe this every day. Your readers don't. Stories, on the other hand, are easily understood by everyone. Why? The short answer is neuroscience. The long answer is....well, it's too long.

• Show me the people. Tell me about real people involved in the cause. They could be volunteers, donors, clients, or allies. Share what motivated them to get involved or what impact your organization has had in their lives. Or better yet -- have them tell the stories themselves.

• Make it personal. Spare me the jargon. I'm not a government bureaucrat (though I play one on TV). Like your donors, I'm a person with precious little time who's not going to spend a minute reading something that doesn't speak to me. Talk to me like we're having coffee. Hell, talk to me like we're having margaritas. Just kill the boring proposal language you'd send to a foundation and talk to me like I'm a friend. Because your donors are friends of your cause, right?

• List your supporters on your website instead. (How many pages did I just save you right there?) If you think your donors will be confused or insulted, insert a text box saying,

"To reduce printing costs and use even more of your contributions towards [whatever wonderful thing you do], we've moved our listing of supporters online. Please visit www.yournonprofit.org/weloveyou to view the list." 

 

This saves space, reinforces that you can be trusted to spend their money wisely, and enables you to correct misspellings and add that person who was inevitably forgotten much more easily.

• Make your financial information matter. What story do you want these numbers to tell? Is it important to convey that overhead is incredibly low... that you get funding from a broad array of sustainable sources... that volunteer time amounts to hundreds of thousands of dollars in in-kind support? Include the data that makes your point and write a little explanation of what we're looking at and why it matters. For the other financial info, direct them to your website.

• Consider calling it something other than an "annual report." Think about the things you do annually -- preparing for the annual audit, wrestling your cat into the carrier to go to the vet, spring cleaning... For most of us, these aren't enjoyable activities. They're obligations. Preparing your "annual report" shouldn't feel like an obligation and neither should reading it. How about calling it an impact report, an accomplishment report or a gratitude report? That sets a whole different tone.

This publication formerly known as your annual report takes significant time and money. Follow these tips and stop wasting both.

Trust me -- most people are going to churn out the same thing they always do. So, create something different and break through the noise. You'll be rewarded.


Do you want some expert help creating an annual report that will delight your donors?  Let's talk!