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Annual Reports That Shine

Agenda

Introduction

The function of the nonprofit annual report

Elements of a nonprofit’s annual report

The internal process

Production process

Working with photographers

Working with printers

Publishing your annual report online2

Introductions

Introduce yourself and your organization

What you hope to get from the workshop

Where are you in your annual report process?

Describe current annual report

Any specific questions you may have

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FUNCTION

What is the function of the nonprofit’s annual report?

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There is no substitute for an annual report

Audited financial statement Does not include a narrative Formalized presentation with emphasis on

numbers May be included in annual report, but a financial

summary may be more helpful

IRS Form 990 Very limited program description About as attractive as a police report

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Basic Functions

Transparency

Public education

Public relations

Fundraising, resource development

Provision of contact information

May serve as a vehicle for regulatory disclosure of information

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Maryland Disclosure Information

Must provide a copy of your organization’s financial statement within 30 days of request. Include:

Organization’s name, address and phone number

Amount of total revenue and total revenue received from charitable contributions

Amounts (and %) of total revenue used during the preceding FY for management and general, fundraising and program services

Statement that your organization is registered with the Secretary of State’s office

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Who are the audiences?

Individual donors (current and future)

Grant-making organizationsBoard members

Volunteers

Staff

Web visitors

Potential clients and their families

Regulators

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ELEMENTS

What are the elements of the nonprofit’s annual report?

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Annual Report Elements - Basic

Mission statement

Program narrative

Basic financial information Summary of activities Statement of financial position

Board of Directors

Management staff

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Standards for Excellence Code

Public Awareness, Engagement, and Advocacy

Nonprofits should represent the interests of the people they serve through public education and public policy advocacy, as well as by encouraging board members, staff, volunteers, and stakeholders to participate in the public affairs of the community.

When appropriate to advance the organization’s mission, nonprofits should engage in promoting public participation in community affairs and elections. As such, they should communicate in an effective manner to educate, inform, and engage the public.

Mission Statement

Current, board-approved

Should be clearly visible and not hidden

Should not be listed in a shortened or abbreviated format

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Program narrative

All programs: new, continuing, ending

Narrative includes brief: Description of activities performed

Measures of output

Measures of outcome

Case studies, testimonials, and anecdotes cannot substitute for narrative

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Basic financial data

Summary is enough

Should be based on audited financial data Auditor can review and approve summary

presentation

Summary statement of activities Revenue sources Expense by program, should include fundraising &

administration expenses

Summary statement of financial position/balance sheet

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Link program narrative to financial data

Narrative and numbers should: Cover the same time period Use similar terminology

A breakdown of financial data by program is required for some nonprofits, recommended for all

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Board Leadership

Helpful to include terms of board members Indicate current board members and board members

leading during annual report timeframe

Indicate officer positions

Board member affiliations (optional)

Contact information (optional)

Photos (optional)

Full board of directors membership listing

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Staff Listing

Key staff members

Many organizations list all staff members in annual report Depends on size of staff and organizational

culture

Contact information for staff members may be helpful

Photos optional

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Annual Report Elements - Additional

List of: Volunteers Donors Partners

Chair or president’s letter

Case studies and anecdotes

Solicitations

Volunteer experiences

Others

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What are pros & cons?

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When annual reports are evaluated for Standards for Excellence accreditation, the document is based on content, not appearanceThe basic elements of an annual report are simple and within the reach of any organization.

DESIGN

What are the design elements of an annual report?

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Importance of design elements?

Overall design

Unifying theme

Delivery method (online, pdf, print)

Photography or illustration

Headlines & captions

Graphs and charts

Typeface/font

Quality of paper

Full color/4-color printing

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INTERNAL PROCESS

What is the internal process for developing an annual report?

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Key part of planning and budgeting cycle

Have a realistic plan for developing your annual report: Make sure you dedicate the staff time/volunteer time to write the required

elements: Draft the program narrative as part of the annual operating plan at the beginning of the year

Redraft as status reports throughout the year

Dedicate staff and volunteers to compile photos, illustrations, lists and items that will be needed to complete the report.

At year end, make final review and revisions of narrative along with financial closing

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Programs are the key

Program reporting is the way to have an annual report that writes itself (almost).

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Subdividing program activities

Reporting by program is required for health and welfare organizations

Planning, budgeting, and reporting by program is a good idea for all nonprofits

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Expenses of a nonprofit

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Remember: Pie charts are helpful, but the actual totals are essential in an annual report. Pie charts alone do not tell the reader the size and scale of the organization!

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Sub-Dividing the Programs

Program role in the annual report process

Programs need to have identifiable revenues and expenses

Program names are used for planning, budgeting, accounting, fundraising, internal and external reporting

“Administration” and “Fundraising” should have their own separate categories

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Organizing the report: an ideal scenario

Designate the annual report project leader And make sure they have the time to dedicate to the

effort.

Make executive design decisions and set theme and budget in first or second quarter

Monitor narratives throughout the year (help

program managers with writing difficulty)

Have everything ready except audited numbers six weeks after year end

Complete the report soon after audited financials are presented and available

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Key process decisions: come to conclusion the earlier the

better How elaborate? (photos, color?)

Type and amount of copy (extra narrative, donor lists?)

Who provides what input? When?

Internal clearance procedure Who needs to proof the report and at which stage?

Do photos need to be taken or will stock pictures do? Do you have required waivers for photos of individuals?

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PRODUCTION PROCESS

What is the production process like?

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The production process

Consider not only production but also approval times.

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Draft Text Concept

“Comp”

Photos

Final Text

Mechanical

Blueline Final Proof

Printed/Published

Process is key to approvals

Know what has to be approved at each stage to avoid additional cost and delays of:

Author's Alterations “Changes in copy or specifications made after production has begun attributed to client”

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Production Process: Concept

Before you meet with a designer

Do a mock-up of the report

Can be extremely rough and still be useful

Full size or half size

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What’s in the concept piece?

Show where to include each element Text, lists, graphs, pictures,

etc. Include all the little

elements, too, as a reminder

Decide what to include Full financial report or

summary? Program narrative or more? Complete donor list?

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PHOTOGRAPHERS

How do you work with photographers?

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Scheduling

Ideally, photos are taken throughout the year and reserved for the annual report rather than scheduling photos solely for annual reporting purposes

When do you want the photographer to appear?

When do you need the final images?

When can you see the images to select the final images for your report?

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Subject Matters

Names of people to be photographed Locations Describe the scenes Describe the types of images you are looking

for (e.g. portraits, candid shots, people at work, staff with clients)

Describe some images that you want

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Using Stock Photos

Stock photos are a great addition to many annual reports Encourage use of royalty-free

photography Much less expensive Does not expire

Research different vendors Discounts are sometimes available

Captions

Who is responsible for getting the captions for photos?

Especially important for event photography

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Editorial Context

What is the subject and the message that the photos will support?

What role will the photos play in the story being told?

How long is the message?

Who is the audience?

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Evaluating photos

Focus

Grain

Contrast

Content

Detail

Flaws

Paper

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Final Product

Specify the size of prints and the approximate size of the final printed product

Specify types and sizes of electronic files you will need for various purposes, print, web, etc.

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Business Matters

Come to agreement on price beforehand

Talk about rights, required copyright language

Have it in writing

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PRINTERS

How do you work with printers?

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Print Considerations

Quantity is the main consideration; low numbers limit the practical options, but less so now than previously Printer may offer various options—digital printing Different presses Can different presentations of your report cut costs?

If far enough in advance, know the preferred options for electronic delivery of material to printer

Some knowledge of pre-press, press, and post-press processes pays off

Some groups are considering no hard copy printing in favor of 100 % online

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Online Annual Reporting

How do you handle publishing your annual report online?

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Post Annual Report on Your Website

Make your basic annual report: narrative, financial summary, board list, and mission statement available on your web page

As a web page – integrated into your site

As a PDF file that can be viewed/downloaded

Make sure your annual report is easy to locate on your website from your organization’s home page

Discuss you expectations for posting your annual report with your designer if engaging a designer Making your annual report an integrated part of your website is

well received but more complex

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Where else to publish online?

GuideStar.org

Allows nonprofit organizations to include additional information

Facebook and Twitter (applicable social media sites)

Other online nonprofit catalogs

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Annual Reports that Shine

Q & A

This program supports implementation of the Standards for Excellence® Code

Annual Reports that Shine

Presenter

This program supports implementation of the Standards for Excellence® Code