How to create a nonprofit annual report that resonates

A nonprofit annual report is a powerful way to showcase your impact and highlight key programs, financials, goals, and major gifts from the past year. When done well, an annual report builds trust with supporters and strengthens their connection to your cause—increasing the likelihood they’ll give again. 

In this article, we'll dive deeper into the purpose of annual reports and walk you through everything you need to create one that resonates with your audience.

Do I have to write an annual report for my nonprofit?

Well, technically, no—you don't have to write an annual report, but it’s certainly in your best interest.

While all 501(c)(3) tax-exempt organizations are legally required to submit annual financial filings to the IRS, annual reports aren't mandated by the government. Instead, impact reporting is a valuable part of your donor communications strategy. Sharing your report with donors, funders, board members, and other key stakeholders each year reinforces trust and engagement.

Though optional, an annual report is a best practice for any nonprofit organization, providing financial transparency on how contributions are allocated. Supporter loyalty relies on transparency—it’s one of the most important aspects of successful donor stewardship. To build supporter confidence in your work, be clear about current initiatives, how funds are used, and future goals.

Nothing says we've got our ducks in a row quite like a well-crafted annual report.

What's the purpose of a nonprofit annual report?

Annual reports update supporters on your accomplishments, programs, goals, and how funds were spent. It serves several key purposes:

• Inspire your supporters 💪 Revisit your mission statement and show how current initiatives align with it. Make donors feel proud to be part of your work.
• Thank your donors 🙏 Show appreciation by highlighting major donor partners, corporate sponsors, or individuals who contributed to your year-end giving goal.
• Demonstrate financial transparency 🙊 Donors want to see how their contributions further your mission. Feature current programs and initiatives in your impact report, proving those hard-earned dollars make a real difference. 

Ultimately, your annual report should strengthen relationships and improve donor retention by demonstrating that your programs are delivering on what you promised.

Did you know?

Discover what a nonprofit impact report is and how to write one →

How to write a nonprofit annual report

No two annual reports are the same. They vary depending on the type and scope of your work. 

Still, to ensure you capture the essentials, we recommend every nonprofit include the following six sections. 

1. Welcome message 📣

Start off with a brief note from your director, introducing the annual report to current and potential supporters. This message doesn’t have to be long—a half-page is fine—but it should thank current supporters and provide a high-level overview of the year’s accomplishments.

Curious how this looks in action? Check out our examples of annual reports for nonprofit organizations below. 

2. Mission and values 💕

As a nonprofit, every move you make—all programs, volunteer opportunities, and campaigns—should be in service of your mission. Briefly revisit your mission, vision, and values early on in your report to ensure everyone is clear on your why.

Why does your organization exist? What are you striving to accomplish? Reinforce these points to remind donors of how their contributions make a difference.

Show the human side of impact by connecting numbers to real people and experiences. Statistics are important, but donors connect more deeply with personal stories. Instead of just reporting, “500 people trained in sustainable farming,” bring the data to life with an individual’s experience. — Angie Drake, Co-Founder, NYAA Consulting

3. Executive summary 👀

This is where you dig into the details. Start with a recap of your program initiatives from the previous fiscal year. Depending on the size of your organization, you may not have space to dive into every program. Instead, review the key objectives from last year and showcase the programs that delivered on those goals.

Since this section includes a lot of information, break up the text with visual aids like pie charts, infographics, or photos that showcase your programs.

4. Financial statements 📊

Donors want to see their contributions at work. Include a financial report with a breakdown of your nonprofit's budget. This might include a balance sheet, cash flow statement, or income statement.

Consider comparing financial metrics from previous years to demonstrate progress over time.

A clear, well-organized report builds trust by showing donors exactly how funds are being used. Include key financials, impact stories, and future goals to keep supporters engaged and confident in your mission.  — Angie Drake, Co-Founder, NYAA Consulting

5. Donor appreciation 💌

Time for some shoutouts! Loyal donor relationships are the backbone of your organization—use your annual report to express gratitude to your supporters. Highlight your volunteers, corporate partners, and major gift donors.

If you run a mid-sized to large nonprofit, recognizing every donor may not be realistic. Instead, focus on major individual and corporate partners—long lists of names aren’t necessary. 

💡 Pro tip: Tools like Givebutter’s donation management software make it easier to track and manage donor relationships, allowing you to personalize your appreciation messages effectively. 

Givebutter has given us the ability to communicate more frequently with our donors and allows us to easily segment and target messages based on past response. — Givebutter Review, Cindy S. 

6. Look ahead to next year 📆

Conclude your annual report with a look ahead, featuring year-end objectives, your fundraising plan for the upcoming year, and your strategy to get there.

If you’re adjusting your focus this year, explain why. Supporters are invested in your mission, not just your organization—they’ll appreciate the wider context on any challenges and how you plan to combat them. 

Download your free nonprofit annual report template

Getting started on your nonprofit’s annual report? 

Givebutter’s free template makes it easy to draft your content, structure key sections, and fill in the blanks—helping you share your impact in a clear and compelling way.

Freebie alert!

Download your nonprofit annual report template ->

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Once you’ve drafted your report, Canva is a great tool for formatting and design, with plenty of free templates to make your final report visually engaging. 

If you're looking for even more customization, Storyraise—a Givebutter integration—offers full nonprofit annual report templates where you can add images, videos, graphs, and more. Plus, they offer a free trial so you can explore all the features before committing.

4 best nonprofit annual report examples 

A great annual report does more than share information—it tells a compelling story. To stand out, your annual report should be clear, concise, visually engaging, and informative, all while staying true to your nonprofit’s unique brand.

Below, you'll find four examples of nonprofit annual reports that do just that. 

1. Keshet 

Keshet’s mission of advocating for LGBTQ+ rights is immediately clear in their digital annual report. The page is visually striking, with a clear color scheme and cohesive graphic design. 

It also spotlights a beneficiary directly helped by the organization. This is paired with a larger narrative overview explaining why their work is critical, while bolded quotes highlight the wider context of the organization’s work. 

💪 Effort level: 7/10

💛 Best for: Small to mid-sized nonprofits looking to deepen supporters’ emotional connection to their mission through storytelling 

✏️Tip: Feature stories of beneficiaries, complemented with quotes and photographs, to showcase the real-world impact of your work. Shift the focus from impressive figures to highlighting how and why you’ve helped people, using storytelling and images.

2. 350.org 

350.org’s annual report breaks down its international work into 6 easily digestible statistics, with simple graphics to make them stand out. 

The map of the world offers a strong visual representation of the impressive scale of work. The report is highly scannable and includes a table of contents, allowing viewers to quickly grasp key achievements without sifting through text. 

💪 Effort level: 6/10 

💛 Best for: Large nonprofits, specifically those with a national or international focus

✏️Tip: Highlight impressive statistics, no matter your nonprofit’s size. Whether it's 70 kittens adopted or thousands of trees planted, metrics can help demonstrate your impact. Bonus points for adorable photos! 

3. Girls Inc. 

Girls Inc.’s report begins with a letter from the nonprofit’s president, explaining challenges faced in the previous year and a thank you to donors. The letter lists what’s included in the report—covering programming, innovations, and progress—so readers know what to expect. The large text block is offset by two positive images and a simple design, making it easier to digest. 

💪 Effort level: 4/10

💛 Best for: All nonprofits 

✏️Tip: Remember, if you’re a large nonprofit, your letter may be a supporter’s first and only impression of you. Take time to craft your letter and ask your employees to review it to ensure it hits the right mark. 

4. Red Cross

The Red Cross’s report is a great sample annual report for a nonprofit organization. This eye catching report showcases several great techniques, including photographs, statistics, quotes from beneficiaries, and a narrative overview of their mission and work. It also focuses on a specific issue (flooding and disaster response) and the Red Cross’s role in relief efforts. 

💪 Effort level: 8/10

💛 Best for: All nonprofits 

✏️Tip: Organize your achievements by advocacy project or program. If your nonprofit brings art programs to incarcerated adults, highlight each initiative, including your approach, curriculum, work created, and participant testimonials. 

Build lasting donor relationships with an annual report

Your annual report provides updates on your fundraising goals, financial performance, and current programs. Although an annual report isn’t mandatory, it’s a powerful tool for maintaining trust with your donors. For more ideas on how to build lasting relationships with supporters, be sure to check out the Givebutter blog.

Givebutter is an all-in-one, donor-centric fundraising platform made for changemakers. Complete with hundreds of free fundraising tools, a built-in nonprofit CRM, and marketing automation, we're here to take your fundraising and donor engagement to the next level—for free.

Ready to see how Givebutter can help your organization raise more in the coming year? Create your free account and get started today! 💛

FAQs: Top questions on annual nonprofit reports

What is needed in an annual report for a nonprofit?

Nonprofit annual reports should include a mission statement, achievements from the previous year, financial information, and goals and strategies for the upcoming year. Fundraising platforms with built-in CRMs like Givebutter are essential for collecting and analyzing nonprofit data to compile your annual report. 

What are the 4 parts of the annual report?

Though nonprofit annual report formats vary based on your organization’s size and scope, typical business annual reports include four main parts: 

• Financial statements
• Business profile and operations
• Letter to shareholders from the president or CEO
• Management analysis

What should be in a nonprofit annual report?

Your nonprofit annual report should include a letter of introduction from your founder or CEO, your specific achievements, and an overview of your mission. You can also include beneficiary spotlights to showcase examples of your work and impact. 

What 3 financial statements must a nonprofit organization prepare annually?

Each year, nonprofits must prepare these three financial statements:

• Statement of activities
• Statement of financial position
• Cash flow statement