Tips for creating a good Annual Report

There are nine distinct sections in most Annual Reports. A good report will usually contain all nine. The following are the sections, where they are located and who is typically responsible. Items 5, 6, 7, 8 are required. 4th is a requirement of the SEC and many lenders. Analysts insist on 9.
1. Chairman of the Board Letter
Within first 5 pages. Should cover changing developments, goals achieved (or missed), actions taken and industry conditions. One or two pages maximum.
2. Sales and Marketing
Closest to the front. Usually written by the marketing department. Where does the company sell and where does it make most of it's money. The scope of Lines, divisions and operations should be clear.
3. 10 Year Summary of Financial Figures
Usually provided by CFO. Front of report is better.
4. Management discussion and analysis
Before financial statements, written by CFO. Discussion of significant trends over past two years
5. CPA Opinion Letter
Either before or after financial statements. Written by CPA firm.
6. Financial Statements
Provided by CFO or CAO
7. Subsidiaries, Brands and Addresses
Last few pages, usually provided by legal department
8. List of Directors and Officers
Last or second to last pages - usually provided by corporate secretary.
9. Stock Price
Analysis's want this. Best to have near front of report. Should contain where traded, stock symbol, High/Low history and price/dividend trends over time. Usually provided by corporate secretary
Some points to consider when preparing an Annual Report.
10. The Budget
11. Desired involvement of COB/CEO/CFO
12. The production team? Committee or one person? Who calls the shots?
13. Expierence of graphic designers/photographers/writers
14. What to include? The major purpose of report
15. How "innovative" should the report be? Die cut layout, inserts, response cards
16. Paper, binding, size, print run
17. Theme for report
18. Items to avoid/explain
19. Competators and competition - how much to include
20. Corporate responsibility - how much to include?
21. Testimonials for outsiders are especially effective when accompanied by photo
22. Test final "galley" copy for readability, interest and comprehension
23. Look at other reports. Critique
It is recommended that the cover contain the following information:
Annual Report for Year ____
The ____th Report
June 30, _____
Name of Firm
Send a copy of your printed Annual Report to:
Annual Reports Library
PO Box 2006
San Francisco, CA 94126-2006 USA
The Annual Reports Library offers personalized consultation services to help with the creation of an Annual Reports.
Don't forget to Tell a story, Keep it simple and Make it readable.



10 Tips for Writing a Great Annual Report
Even though nonprofit organizations aren’t required to produce annual reports like publicly traded companies are, most nonprofit managers recognize the value of producing one. Annual reports can help you demonstrate your accomplishments to current and future donors, cultivate new partnerships, and recognize important people.
But since annual reports aren’t legally required, nonprofits often struggle with what should be included in an annual report and what should be left out. The following ten tips will help you craft an outstanding nonprofit annual report.
1. Focus on accomplishments, not activities.
We want to know what you did, but more importantly, we want to know why you did it. What were the results? Why did you spend your time and money the way you did? What difference did it make? Connect the everyday activities of your organization to your mission statement.

1. Don’t assume that readers will automatically understand how your activities help you achieve your mission. Connect the dots for them.
2. Jettison the administrative minutiae.
Getting a high-speed connection in the office and new accounting software may be big accomplishments from where you sit at your desk, but they have nothing to do with your mission. Inspire donors with accomplishments related to your mission in your annual report and leave all the administrative items for your board report.
3. Don’t over-emphasize fundraising accomplishments.
Donors expect you to raise money, but 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.
4. Include photos.
Yes, photos really are worth a thousand words. Many of the people reading your annual report won’t actually read it. Show them what you’ve been doing with photos. If you don’t have a digital camera, get one now. It’s also fine to use stock photography to illustrate your work. Type “royalty free stock photos” in your favorite search engine and you’ll find numerous sites.
5. Write captions that tell your story.
Now that you’ve got them looking at the photos, tell a story with your captions. Don’t just state what’s in the photo. Connect the photo to an accomplishment. If people read nothing but the captions in your annual report, they should still get a sense for the good work you did last year.
6. Include personal profiles.
Donors will be more impressed with real stories about real people than general summaries of your work. Explain what you have accomplished overall, then humanize your statistics with some personal profiles. Highlight how your work helped a specific individual. Share a volunteer’s story of how they made a positive difference.
7. Explain your financials.
Many of your donors won’t know how to read a financial statement or won’t take the time to read it. Include a paragraph or two that explains in plain English what the tables say. Where does your money come from and how do you spend it? What are your main fundraising strategies? Did you implement any cost-savings measures this year?
8. If you need space, trim the donor lists.
Nonprofits need to strike a balance between using the space in their annual reports to discuss their accomplishments and using it to recognize donors. If as much as half of your annual report is donor lists, you should consider scaling the lists back to make more room for text and photos. Smaller donors can be recognized in other ways, such as lists in newsletters.
9. Triple-check your donor lists.
There’s no better way to sabotage a future donation than to spell the donor’s name wrong in your annual report. If you are uncertain about a name, don’t guess. Check it with the donor. Also carefully check the names of government agencies and foundations that gave you grants. The names people call these organizations in conversation are often short-hand for the full legal names that belong in your annual report.
10. Tell donors how they can help.
Never leave a potential supporter hanging, wondering how they can help you. Once you’ve inspired them with the good works in your annual report, close by telling them how they can help you do more. How can they support you with their money or time? Do you offer planned giving options, for example? Will you accept gifts of stock? Can they use a credit card? Be clear about the best ways to help.