DO WE REALLY NEED THE ANNUAL REPORT?

To publish or not to publish an annual report --- an age-old, much-debated question in the nonprofit world! And the verdict on the annual report has been "out to the jury" throughout those ages!

Long before there were anywhere near the kinds of “whiz-bang” technology we have available today --- the multiple means of electronic communication, the web-based channels galore --- folks in the nonprofit sector stroked chins, puzzled over and opined about the real value of the annual report as a tool for general communication and donor cultivation.

The reason for that puzzling about value is based on two factors: (1) the annual report can be a pretty costly collateral item (depending, of course, on how free you feel to spend money), so it’s always going to be called into question by somebody; (2) the organizational rationale and overall strategy and goals in producing an annual report are either missing or not well-conceived in the first place. And the issue of donor communication/recognition/cultivation obviously needs to be a critical component of that rationale and strategy.

There is no single, one-size-fits-all answer or resolution to this issue. The answer and resolution can be very different for differing nonprofit organizations. If producing an annual report seems to fit with the organization’s overall strategy for corporate communications, financial reporting, PR/positioning, measuring community benefit/impact, and, of course, informing, educating, recognizing and cultivating donors, then produce one. The more positive communication and reinforcement of the organization’s case for support the better! Be sure to integrate the annual report with all other communication and messages. Be sure the report looks forward, not just backward, tells positive stories, and recognizes donors for the differences their support makes.

Design and produce the annual report within a budget that fits reasonably and defensibly with the organization’s resources. Be creative with format and design, and look for ways to have impact without unnecessary “glitz and glamour.” Focus on stories about people helped by the organization and its benefit to its service area. Utilize all channels of communication to deliver the report, including as a PDF attachment to e-mail and web-based platforms. Print a smaller quantity of hard copies if there is a need to mail to selected audience members and stakeholders.

The bottom-line: figure out the best course of action for your own organization and produce a report that helps to cultivate, manage and sustain positive relationships. See that your annual report defines and validates your organization's positive impact on its service area while documenting performance promises made and kept.