Annual Reports: Presenting Your Successes

C O M M U N I C AT I O N S

A Detailed Guide To Creating Professional Annual Reports

Launched in 1982 by Jim and Patty Ro u s e ,

The Enterprise Foundation is a national,

nonprofit housing and community d e ve l o p-

ment organization dedicated to bringing lasting

i m p rove m e n t s to distressed communities.

COMMUNITY DEVELOPMENT LIBRARYThis book is part of the Enterprise CommunityDevelopment Library, an i n valuable re f e rence collectionfor nonprofit organizations dedicated to revitalizing andreconnecting neighborhoods to mainstream America.One of many resources available t h rough Enterprise, itoffers industry - p roven information in simple, easy-to-read formats. From planning to governance, fund rais-ing to money management, and program operations tocommunications, the Community De ve l o p m e n tL i b r a ry will help your organization succeed.

ADDITIONAL ENTERPRISE RESOURCESThe Enterprise Foundation provides nonprofit organizations with expert consultation and training as well as an extensive collection of print and onlinetools. For more information, please visit our Web siteat www.enterprisefoundation.org.

Copyright 1999, The Enterprise Foundation, Inc.All rights reserved.ISBN: 0-942901-39-8

No content from this publication may be reproduced ortransmitted in any form or by any means, electronic ormechanical, including photocopying, recording or any infor-mation storage and retrieval system, without permissionfrom the Communications department of The EnterpriseFoundation. However, you may photocopy any worksheets or sample pages that may be contained in this manual.

This publication is designed to provide accurate and authori-tative information on the subject covered. It is sold with theunderstanding that The Enterprise Foundation is not render-ing legal, accounting or other project-specific advice. Forexpert assistance, contact a competent professional.

Table of Contents

Introduction 2

Elements of a Good Annual Report 3

Eight Steps to Success 4

Writing the Annual Report 6

Design Elements 8

Using Consultants or Freelancers 10

Annual Report Timeline 11

Distributing Your Annual Report 12

Sample Budget 13

Checklist From Start to Finish 15

Appendix: Sample Pages 16

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About This Manual

What is an annual report?

An annual report is a credible, versatile document through whichyou can communicate the successes of your organization. An annualreport authenticates your community development organization andshows that you are operationally and financially sound.

Annual Re p o rts: Presenting Your Successes g i ves you the tools to make yo u rvoice heard by organization supporters and stakeholders. It is designedto help the staff of nonprofit community development organizationsc reate effective annual re p o rts and make the process less intimidating.This manual includes examples, checklists and information to help you:

Understand the elements of a good annual report.

Follow the eight steps to creating a successful document.

Write and design the report.

Hire consultants or freelancers.

Distribute the annual report.

Create a budget.

This manual is part of the Communications series within The EnterpriseFoundations Community Development Library. This series providesdetailed information on all aspects of communications from devel-oping a central message to creating a comprehensive communicationsstrategy. Other manuals in the series provide information on:

Creating brochures and newsletters

Developing action alerts

Working effectively with the media

Writing marketing sheets

Organizing neighborhood tours

Creating a message for your organization and identifying an audience

IntroductionAs more and more nonprofits vie for the samepool of support and dollars, accountability ismore important than ever. People are morelikely to support you financially when they seeconcrete evidence that their dollars are beingused wisely. Your annual report can be the determining factor.

An annual report familiarizes readers with yournonprofit on every level: objective, mission,financial status, projects, programs and people.With its focus on financial information andyearlong accomplishments, this document sub-stantiates your nonprofits contributions to the community and bestows instant credibility.

Using photos and personal stories of your cus-tomers and supporters to illustrate your suc-cesses makes your story come alive.

Developing an annual report can be time-con-suming and expensive, but it is time and moneywell spent if its well written and designed, andprovides appropriate information. After all, its adocument that will have a long life, stand as anintroduction to potential donors and serve asyour nonprofits general marketing brochure.

But what if your nonprofit does not have theresources or a sufficient number of successfulprojects to justify producing a traditional annualreport? Change the name! Call it a communityreport or an annual review. Do not let a titlestop you from touting your financial stabilityand accomplishments.

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People are more likely to support you financiallywhen they see concrete evidence that their dollarsare being used wisely. Your annual report can bethe determining factor.

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Corporate benefactors and others who read a lot of annual reports expect to find information in a certain order within the document. This makes it easier for you to organize the information for yourannual report. However, this also challenges you to make the text concise, conveying importantinformation in few words. Pictures, which create visual interest, must be selected carefully to deliverthe impact you want.

Elements of a Good Annual Report

Front cover title and theme plus theorganizations name and logo

Letter from the executive director or board president

Mission statement one or two sentencesdescribing your nonprofits goal and purpose

Optional table of contents

History of your nonprofit

The organizations philosophy and beliefs

Statistics and profiles of the people you serve

Highlights of accomplishments for the year projects, programs, services

Optional future plans

Map illustrating the geography of your pro-ject, the location(s) of your program andyour organizations sphere of influence

Financial statements audited or notaudited is acceptable

Awards, grants, loans and donations yournonprofit has received

Roster the executive directors name and board members names and affiliations

Optional staff listing

Acknowledgments of all contributors, supporters and volunteers

Back cover your nonprofits logo,address, phone and fax numbers, email and Web site addresses, any photographerand sponsor credits

Typically, an annual report is organized in the following order:

Tackling a project as important and encom-passing as an annual report requires organiza-tion. Use the following eight steps to ensurethe process moves forward and does notbecome an onerous burden to your nonprofit.

S T E P 1KEEP GOOD RECORDS

Because your annual re p o rt chronicles a year ofh i s t o ry and accomplishments, your entire staffshould be able to contribute to the project. It isessential that each staffer keeps re c o rds to sup-p o rt your achievements dates, events, peo-ple, recognition, etc. Trying to backtrack andcollect year-old information is difficult, and theresults are too often incomplete or inaccurate.

S T E P 2APPOINT A PROJECT LEADER

Assign overall authority to one person. Look fora conscientious staff member with good commu-nications and organizational skills, and an eye forclarity and cre a t i v i t y. As project leader, this per-son is responsible for developing and managingthe budget; meeting deadlines; re c ruiting writers,designers and pro o f readers; and overseeing allaspects of the production pro c e s s .

S T E P 3ESTABLISH A BUDGET

Your budget should include staff time and,depending on the skills of your staff, the costof hiring writers, designers, photographers andthe cost of printing. An example is provided in the Sample Budget section.

S T E P 4DEVELOP A THEME

Decide on key messages and build a themethat encompasses them, such as 1,500Homes in Fi ve Years, or Thanks to Ou rPioneers. A theme gives you a framew o rk foryour language and graphics. It also helps yo up resent your information concisely. You canc reate a new theme or tie in to one being usedin your other marketing materials. Invite keystaff and board members to participate ind e veloping the theme. Brainstorm ideas.

S T E P 5PRESENT A PROFESSIONAL APPEARANCE

An annual report covers a variety of topics,from heartwarming stories that illustrate yourprograms to the financial highlights of the pastyear. You must package this diverse mix ofinformation so it comes across intelligently,clearly and credibly. The right choice of wordsand visuals is critical. Use headlines and sub-heads to guide readers through the content.Charts and bulleted copy can present informa-tion concisely as well as add visual interest tothe page. Choose art and photos that comple-ment your text.

Look at other annual re p o rts to see the rangeof possibilities, what you like and do not like,the type of information included and typicalorganization. Ask staff and volunteers to bringin samples they like. Ask board members andp a rtner organizations for a copy of theirannual re p o rts. Your public library may also be a re s o u rc e .

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Eight Steps to Succes