A simple annual report for your supporters

This guide is for small charities that want to tell their supporters, once a year, what their help made possible. An annual report here means a short, friendly document for donors, volunteers, partners and your community. It isn't your Form 990 or any other government filing (and it isn't the "annual report" some states require to keep a corporation active), and no federal rule requires it. That's what makes it useful: it's your chance to say, in your own words, what happened, what it cost, and what comes next. After reading, you'll know what to include, how to fit it on one or two pages, and when and where to share it.

Why bother

Supporters give money, time and trust. A yearly report closes the loop. It shows each person that their gift became something real, which is often what makes them give again. It also helps your board see the year as a whole, gives new volunteers a quick way to understand you, and saves time when a funder asks "what did you do last year?"

What to include

Keep it to these six parts. Each can be a short paragraph or a few lines.

1. Your mission, in one sentence

Remind readers why you exist. Use the same sentence you use everywhere else. If you don't have one yet, the mission step of the founder pathway will help.

2. What changed for people

This is the heart of the report. Lead with outcomes, meaning what changed for the people or place you serve, not just activity. "Thirty-two families had fresh vegetables every week from June to October" says more than "we held 20 distributions."

Use honest numbers:

• Count only what you can back up from your records.
• Say what a number means. "We served 1,200 meals" is clearer as "about 1,200 meals for 85 people over the year."
• Don't add up the same person twice, and don't round up to sound bigger.
• If you're not sure, say "about" and explain how you counted.

Add one short story with a name only if the person has agreed, and treat them with dignity. Our guide to telling your story covers consent and how to write about people without making them props. For choosing what to count, see measuring impact.

3. Money in and money out

Show where your money came from and where it went, in round numbers and simple categories. For example:

These figures are illustrative. Whatever you show must match your books and, once it's filed, your annual IRS return. A donor who compares your report with your Form 990 should find the same story. If the numbers differ because your report covers a different period or uses round figures, say so in a footnote line.

Have your treasurer check this section before anything is published.

4. Thanks

Thank donors, volunteers, partners and funders by name where they've agreed to be named, and as groups where they haven't. Always ask before listing individual donors. Some people give quietly on purpose. Don't show gift amounts next to names unless donors have said yes.

5. What didn't work

One honest paragraph about what was hard or what you'd do differently builds more trust than any photo. A made-up example: "Our Saturday tutoring had low turnout, so we moved it to weekday afternoons in the spring, and attendance doubled" shows you pay attention and use money carefully.

6. What's next

Say what you're planning for the coming year and how readers can help: give, volunteer, share, or come to an event. Make it one clear ask, with a link or contact.

A one-page layout

Many small charities can fit the whole report on one page, front and back. A layout that works:

• Top: your name, logo, the year covered, and your mission sentence.
• Left column: three big numbers, each with a one-line explanation.
• Right column: one short story with a photo (with consent).
• Middle band: the money-in, money-out table.
• Bottom: thanks, the "what didn't work" paragraph, what's next, and how to give.

A longer version can add a page of thanks or a few more stories. Shorter is almost always better.

Plain language and accessibility

Write as you would talk to a supporter over coffee. Use short sentences, everyday words, and explain any term your readers might not know. Read it aloud before you publish.

Make sure everyone can read it, including people who use screen readers or read on a phone:

• Use real headings, not just bold text.
• Give every photo and chart a text description.
• Use enough contrast between text and background, and don't rely on color alone to carry meaning.
• Publish a web page or an accessible document, not just an image or a scanned PDF.

Our guide to accessible documents walks through each of these.

Timing

Pick one time of year and stick to it. Common choices:

• A few months after your fiscal year ends, once the books are closed, so the money section is final.
• Before your main giving season, so supporters see what last year achieved before you ask again.

Don't wait for a perfect design. A clear, accurate report on time beats a glossy one six months late.

Where to publish

• Your website: a page that stays up, linked from your About or Donate page.
• Email: send it to donors and volunteers with a short personal note.
• Print: a few copies for events, your office and partners who prefer paper.
• Social media: share one number or story at a time, with a link to the full report.
• Grant applications: many funders welcome a copy.

Your Form 990 is public anyway

Your annual report doesn't replace your IRS filings, and it can't hide anything in them. Federal law requires a tax-exempt organization to make its exemption application and its annual returns, such as Form 990 or 990-EZ, available for public inspection and copying. Each annual return must stay available for three years from its due date (including extensions) or the date it was filed, whichever is later (IRS). The Form 990 instructions explain that you can either give copies on request or make the returns "widely available" on the internet, and that you must still allow inspection either way, and tell anyone who asks where to find them. You don't have to disclose the names and addresses of contributors (except for private foundations).

If your gross receipts are normally $50,000 or less, you may file only the Form 990-N e-Postcard, which has no financial detail. Either way, make your report and your IRS filings tell the same story. Some charities link to their latest Form 990 from the same web page as the annual report, which saves answering requests one at a time.

Annual report checklist

• Our mission sentence is at the top
• We lead with what changed for people, with numbers we can back up
• Stories and names are used only with consent
• Our treasurer has checked that the money figures match our books
• Donors are named only if they agreed
• We've included one honest paragraph about what didn't work
• Photos and charts have text descriptions, and the report works on a phone
• It's on our website and has gone out to supporters

General information, not legal, tax or financial advice. Rules change and every situation is different, so check the official sources and talk to a qualified professional before you act.