Almost all charitable nonprofits that are recognized as tax-exempt by the IRS are required to file an annual report with the IRS, known as Form 990. But it does not stop there. Nonprofits are always looking for new ways of connecting with their donors, and an annual report provides an engaging way to tell your story. It’s your way of sharing your mission and impact with donors, key partners, and super volunteers. An annual report is informative and a visual case for support.

And this year, there is so much to tell.

Many nonprofits have had to pivot their programming and may even need to revise their core language. Your annual report is an opportunity to share your new “WHO WHAT WHERE HOW” of your mission. Members of your community want to know these changes, especially your most loyal donors.

So, what will your 2020 report say and how will you tell it?  Here are some suggestions to consider.

First, tell your donors how your organization responded to the pandemic and the great instability of this year:

• How has the community and/or people that you serve been impacted by COVID?
• When did your facilities or offices close and/or reopen?
• How did you deliver your work safely to your constituents?
• Were you an organization providing your community with first responders and vital workers (we thank you!)?
• What unforeseeable or incremental needs and expenses have you incurred?
• Did you get PPP money?

For many nonprofits that hire staff locally, it’s been essential that they take great care to not further adversely impact the health and employment in already at-risk communities.

• How did you treat your staff and respond to their basic needs?
• How did you help your staff work from home? Handle staff meetings?
• How did you manage your staff? (furlough, layoffs, and/or flex schedule)
• What other issues did you address? (protection, hazard pay, mental health, wellness, vacation time, parental leave, technology training)

Your donors want to know how your board and leadership responded to the racial equity issues elevated this summer.

• What was your response or public statement to the Black Lives Matter movement?
• What new steps have you taken to ensure racial equity and diversity and inclusion in your workplace?

Communicate how you encouraged your staff (and stakeholders) to vote:

• Did you close your office?
• How did you encourage your team to civically participate?
  • Paid time off to volunteer
  • Work at the polls
  • VOTE

Every nonprofit had to adapt to uncharted approaches to fundraising virtually. Your annual report can acknowledge how your staff, volunteers, and donors adapted and stayed committed to your organization’s financial sustainability. Share how you pivoted your fundraising and outreach activities:

• Virtual galas or peer-to-peer campaigns
• Relief-specific funds or new giving opportunities
• Zoom donor briefings, town halls, virtual site visits
• Online volunteer trainings

Don’t be shy to ASK for support. Share key funding opportunities and make a strong case for support.

Celebrate the silver linings! Perhaps you have a lesson learned, a new approach, or a benefit that can be revealed. Every nonprofit has a story to share of how friends, family, supporters, and neighbors helped through these tough times. Include a testimonial or a shout-out from a:

• Local official who increased support
• Companies that provided pro bono financial modeling
• Community partners who supported your programs
• Volunteers who masked and came out to lend a hand

What you will say is only half the story. How you tell it this year is critical. Budgets have been cut so printing and sending something in the mail may not be feasible. Photography was limited this year because we were all at home. Yet, your constituents want to see and be engaged and inspired to help keep the organizations they care about in the black.

• Make your story compelling and sharable – video, stats
• Share your story on new platforms – email, social media, PSAs
• Show your diversity through animation and infographics
• Create a flip book or a video montage
• Promote your social networks and gain followers
• Create something that your donors can print out or watch at home

We hope this advice helps you develop messages that motivate donors and build community for your nonprofit.

Click here to view Queens Defenders full 2020 Report designed by Diane DePaolis
Click here to read Ramapo for Children’s full 2019 Annual Report design by Susan Huyser
Click here to read CoveCare Center’s Annual Report