Everything you need to know about writing a charity annual report
6-minute read
Last update: April 2024
If there’s one project guaranteed to strike fear into the heart of a charity communications professional, it’s the dreaded annual report.
Summing up a year’s worth of achievements and your charity’s financial performance in one document is tricky enough. Add in the pressures of legal requirements, and a lengthy sign-off chain that includes auditors and your trustees, and it can feel like a daunting challenge.
Maybe you’re writing an annual report for the first time and you’re wondering where to start. If that’s you, read on for my tips for avoiding some common pitfalls and producing something you, and your charity, can be proud of.
What’s the purpose of an annual report?
You may be asking whether you even need an annual report. So often, it can be a weighty document that takes months to produce and ends up gathering dust on a shelf. There’s a good reason many charities opt for a pared-back annual review or impact report for a mass audience.
But charities are legally required to publish a trustees’ annual report and accounts. Smaller charities can file a simple report with the Charity Commission, and if you do this, you’ll want to look for other ways of showing your supporters how they’ve helped make a difference.
Of course, most people won’t be examining all the fine print. But for some – particularly those who are thinking of making a large donation – checking your annual report is part of their due diligence. It’s worth having these audiences in mind as you write.
Project management is half the battle
Producing an annual report is a major undertaking that needs input from multiple people, and which usually has many layers of sign-off. That means good project management is essential.
As well as time for writing, you’ll need time to gather information from people across the charity, and for auditors, senior management and trustees to review the document. It’s also important to factor in design work, as well as time to plan for your report’s public launch.
With many pairs of eyes scrutinising your work, be prepared to make lots of changes!
Know the rules
There are certain things a charity annual report must contain – such as:
an overview of the charity’s objectives,
its achievements across the year,
its approach to fundraising,
information on how it’s governed,
and a full account of its finances.
The Charity Commission has detailed guidance on what you need to include, depending on your charity’s size and type.
Listing the different sections you’ll need also helps to break down a big writing job into smaller, more manageable chunks. Your finance team should be responsible for pulling together the accounts section. But for the narrative sections, you can have a big impact by making sure information is easy to understand and presented with the right context.
What’s your story?
Packing a year’s worth of achievements into one document can make for an overwhelming read. But if you have a grasp of your take-home messages, you can thread these through your report to develop a cohesive narrative.
It helps to start with the financial story, based on the headline figures from your accounts department. You may be celebrating a record year for your charity – or perhaps you’ve weathered a challenging year, thanks to your supporters. Whatever your financial story, it’s the lens through which all your achievements from the year will be viewed.
To do justice to those achievements, it’s essential to talk to your colleagues about their work. Ask for their view on:
The standout successes from the year.
The things that illustrate your charity’s impact.
What they learned or did differently.
What they have planned for the coming year.
It’s crucial to involve departments that deliver frontline services, but others will have valuable information too. And of course, don’t forget your communications department – especially if raising awareness if part of your charity’s remit.
Once you’ve gathered your information, you can sift through it to pick out broader themes, and an overarching story, before you start to write.
Demonstrate your impact
It’s easy to fall into the trap of mistaking your charity’s outputs – like the number of people helped, or the number of projects funded – for its impact. To avoid this trap, try using the ‘so what?’ test whenever you make a statement that’s intended to show the difference you’re making.
What do I mean by that?
Well, consider this statement:
“This year, we held regular lunch clubs for 1,000 older people who are living alone.”
If you were to ask yourself, ‘so what?’, you might add:
“…helping them stay healthy and make vital social connections with others in their community.”
Testimonials from people you’ve supported are especially powerful. Real-life case studies help to give a voice to the people you work with, and allow readers to better understand the impact you’re making on people’s lives.
And of course, remember to acknowledge the role your supporters have played. Phrases like “thanks to our supporters…” or “with help from our volunteers…” can help those people to feel recognised and appreciated (and more likely to support you again in future).
Don’t just tell people – show them
As a copywriter, words are my thing – but even I start to glaze over when presented with a long report that’s all copy!
Involving a designer early on can make all the difference in bringing your beautifully-written prose to life. Photography, illustrations, infographics, and other design elements can go a long way to keep people engaged. Talk through your content with your designer and get their input on ways to make a visual impact.
And don’t forget to think digital. How will people view the content online? Are there elements of the report that could be repurposed for your social media feeds? Planning for this as you work on the full report will make your life easier when you come to launch it.
Launch date – and beyond
To save your report from a life languishing on a shelf, you’ll need to think through how you’ll launch it – and how you’ll continue to use it after the launch.
Just as you would with any campaign launch, look at what channels are available to help you reach your target audience – from social media to newsletters or in-person events. Remember to include your own staff as an audience, too! They’ll need to know if the information you’re publishing changes any of your standard messages, and they’re also key for helping you reach a wider audience. For fundraising teams who are talking to potential supporters every day, new stats and examples of impact are gold dust. Make sure this content is easy for them to access and use in their own work.
You may also think about contacting the media. Admittedly, ‘Charity publishes annual report’ isn’t a great headline for a press release – but perhaps you have new figures showing a surge in demand for your services, or a record number of people have signed up to volunteer. It’s always worth considering whether there’s a story in your report that has a good news angle.
Help is at hand
If you know how to plan and have a good grasp of storytelling, you have all you need to produce an annual report that really shows off your charity’s work to potential donors. There are some great resources out there to help – check out the full Charity Commission guidance, as well as Charity Comms’ brilliant Best Practice Guide on annual publications.
But of course, if you could use some tailored support for your annual reporting, just get in touch to see how I can help.
