As a nonprofit, the only report you are required to provide is a 990, but creating a more comprehensive and donor-centric report provides your donors with proof that their support has had an impact and shows future donors you are a fiscally responsible organization. Let’s take a deeper look at why your organization needs an annual report:
Financial transparency:
Donors want to know how the dollars they donated are spent, and while 990’s are public record and can be accessed by your supporters, they are not the easiest to decipher. Your annual report will provide your supporters with a clear explanation of what funds your organization raised and how they were used.
Prove how your organization makes a difference:
It is your responsibility to show your supporters the work you are doing and the impact of your mission. By showing this, you are proving to your donors that the dollars they gave were used as intended. While you want to show your donors the difference you are making, you also want to make it clear that there is still work to be done in regards to your cause and share how your organization will continue to have an impact.
Show your donors you appreciate them:
The annual report is a comprehensive way of showing your donors how important they are to your organization’s success, but it should also show them you are grateful for their contributions. This is often accomplished with donor lists, visuals, and a written thank you.
There are many positives to creating an annual report, and there aren’t any negatives that we can think of. So, why not create an annual report? Get started now and check out our blog on the elements of an annual report here.
