Tips for Creating
Non-profit Annual Reports

Your Annual Report:
More Than An Accounting ©

by David L. Shank, APR
Shank Public Relations Counselors

(Author's note: This was presented to the Indiana Donors' Alliance as an overview of what non-profit organizations should consider when developing annual reports. Obviously, many of the same criteria also apply to profit-making organizations.)

Define your target audience(s):
Clients / Funding Sources & Contributors/ Volunteers / Board / Staff / Community/neighborhood / Other not-for-profits/ Media

Conduct a readership survey:
Different people read different parts: accountants read the financials; contributors read the program sections.

Define your objectives:
Financial Report -- the bottom line:
income, program expenses, administrative expense ratio, etc. How contributions are used.

Program Report -- whom do you serve; how do you serve them?

Potential Contributors -- those with whom you want to develop a relationship.

Contributor Recognition -- names of contributors.

Marketing Tool -- how do you want to be perceived -- presentation.

View to the future -- Executive Director's message.

Concept development:
Make them want to read it. Use creativity, graphics and photos.

Presentation AND message must match the objectives and reality of organization.

Too slick can be counterproductive -- perception: too much $$ spent on report.

People in general do not spend much time reading. Communicate quickly.

Theme? How do you want to be recognized? Long term message.

Production:
Start early -- six months isn't too early.

A good looking report will generate interest and funds.

A cheap looking report will diminish your organization.

Include a contribution envelope in your annual report.

Look for cost efficiencies: Consider black and white instead of four-color.

Using a complementary paper stock with two-color inks, can give a four-color appearance.

Choose a size that maximizes paper efficiency.

Design with postal regulations and costs in mind.

Use annual report to drive people to web site.

Post summary of annual report on web site.

Obtain photos from outside volunteer sources: not every photo must be professional --however, bad pictures make a bad report worse.

Have model releases signed by people pictured in photos -- especially youth under 18 years of age.

Seek in-kind contributions to defray production costs.

Proof, proof and reproof -- errors damage credibility.

Make your report work for you:
Overprint enough to use your annual report as your agency brochure.

Have enough to take with you everywhere you go. Use as a leave behind for speeches, presentations, inquiries, fundraising letters.

Provide to new board members as a quick introduction to the agency.

Give to volunteers so they understand the organization.

Send to news media in your area as background information that may create news stories.