The Secret to Crafting an Excellent Annual Report is...
Use the 70,20,10 Rule to Write an Excellent Annual Report
Nonprofits and businesses use annual reports to share excitement about their programs and services. Annual Reports inspire committed donors and volunteers, instill trust with external stakeholders, and attract new donors and strategic partnerships. Paying close attention to the content in your annual report produces a higher return on investment. Therefore, using the 70,20,10 rule, you create a report that inspires.
70 % Stories
Seventy percent of your annual report should focus on telling stories of impact. Stories of impact cause donors to give at a higher rate. People give to people, meaning donors want to read about the difference your organization makes in the world on a personal level. Stories also enhance the understanding of impact data. Lastly, stories are a great place to share the positive benefits of a collaboration with a local foundation or stakeholder.
Make sure to have permission to tell stories, change identifying information where necessary, and write stories in a way that honors the dignity of the individuals you highlight.
20 % Impact Data
Twenty percent of your annual report should highlight impact data from your year of operations. For example, “XYZ organization served 8,000 meals in 2019” or “XYZ mentored 85 children and youth in 2019.” Readers also want to know about financial data like your percentage of administrative vs. program costs, your number of individual donors, and your budget highlights.
Use infographics, charts, and headings to describe your impact data in a compelling manner.
10 % Ask
While your Annual Report is not primarily a direct fundraising tool like an annual campaign letter or a special event invitation, it is still wise to include an ask. Sometimes donors develop "ask fatigue," where they prefer fewer solicitations, and sometimes donors want to see an ask in every piece of communication from your organization. Add a request for support to your annual report but keeping it small and targeted. Devote a half or quarter page to a request for support of a successful program or new initiative.
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