Annual report writing: Opportunities for non-profits
With the end of the financial year just around the corner, it’s time to be thinking about your annual report writing for non-profits. This post is the third in a series of four outlining a few issues that need to be considered when preparing your business report.
Late last year, the Federal Government established the Australian Charities and Not-for-Profit Commission (ACNC) under the Australia Charities and Not-for-Profit Commission Act 2012 (original title eh?).
Without going into the nitty gritty, what this means for the not-for-profit sector is that some of their obligations have changed – including that they now have the obligation to report annually to the ACNC via an Annual Information Statement (AIS).
This has sent many in the sector into a tiz, because the 2012-2013 financial year will be the first time that detailed information about Australian registered charities is available to the public from a central registry. And from 2014, the AIS will need to include financial information.
But I see this as a great opportunity for charities to take step further and produce a true annual report that shouts their achievements from the rooftop – more on this later.
Charities will need to begin preparing their 2013 AIS from July 1, and it will be due six months after the reporting period (in most cases, that is December 31, 2013).
So what needs to go in the report?
In 2013, all charities – small, medium and large – will need to report about their non-financial operations. You can download a sample form here. And from 2014, the AIS of medium and large companies must include financial data (this is optional for small charities).
Now for the great opportunity
Since charities and not-for profits now need to collect and report on a number of operational activities, why not go a little further and produce a report that the charity can also use as a marketing publication to generate more supporters, more government funds and more public awareness? It doesn’t have to be expensive – it could be produced entirely on line to minimise cost – but it will give a greater return on investment than the ACNCs bland tick-box form.
Many charities already produce annual reports – even through there is no governance requirement to do so – which proves they have seen the value of such a broad marketing tool. And the AIS will make it easier for others to do the same thing by simply expanding on what the ACNC already requires.
Here’s a few ideas to make your non-profit annual report stand out:
1. Focus on the big picture: Don’t worry about administrative details – such a new office fitout . Instead, concentrate on the accomplishments that have helped achieve your goal. Talk about how they fit into your charities’ mission and how donors have helped you make difference to the cause that you are raising funds for. Readers don’t really care about what you did, but rather how you did it, why you did it, and what did you achieve by doing it.
2. Don’t bang on about fundraising: After all, people expect you to raise money! So by all means mention fundraising, but don’t celebrate it in the same way as you celebrate the achievements that helped you achieve your mission. In other words, give readers information about what you did with the money, rather than how you raised it. Fundraising accomplishments should not be celebrated in your annual report on the same level as your mission-related accomplishments. Readers are more interested in what you did with the money than how you raised it. While it is appropriate to include information on how well your fundraising efforts are going, it’s best to place this information in the financial section of your report, rather than front and center. And the financial part of the AIS – from 2014 onwards – is the perfect place for this.
3. Include case studies: Through personalising the issue, one good case study can tell your story better than thousands of empty words. Similarly, an annual report is a great time to highlight your volunteers through giving them some space to share why they support your charity. This not only provides great third-party endorsement, it also gives recognition to those without whom your organisation would be nothing.
4. A picture (or image) tells a thousand words: The last thing anyone wants to read is reams of reams of unbroken text. And even with photos, many people won’t read your report at all. Which is why your images need to tell a stand-alone story. Ensure they are high-quality, and include attention-grabbing captions.
5. Close the deal: Potential donors are very likely to be reading your report. So once you have ignited their interest make sure you scatter subtle calls to action throughout – email details, web site addresses, phone numbers, where donations can be left and so on. There is no point telling people how great you are without also telling them how that can be part of that greatness.
Do you run a charity and want an annual report that will help you stand out from the crowd? Contact me (that’s Nicole) via my contact form or call 0403 595 445. I’d love to help.
Next week: The annual report you have when you don’t have an annual report.