Most charities and other nonprofits are legally required to produce an annual report that lets their stakeholders, as well as various regulatory bodies, know about their mission, activities and results for the year. In addition to the required financial statements, and disclosures, many NFPs include additional information with their report, such as an opening statement from the chair of the board of directors.

The performance report is another item typically included in the annual report. While its intent is to show the difference made by the nonprofit’s work in their community, most NFPs lack the resources and know-how to adequately collect the necessary data to adequately measure and describe their impact.

Tips to Improve Performance Reporting

As we discussed in our previous article, Redesign Your Annual Reports to Stand Out, most NFPs benefit when they take the time to improve their annual reporting. By focusing on outcomes when preparing your performance report, you will be able to present your data in a way that better informs your supporters about the work that you are doing, and, how their contributions help you to maximise your impact and grow your organisation in a financially sound, responsible and sustainable manner.

Use Automation and Big Data to Bring the “Big Picture” into Focus

In addition to viewing your impact through the lens of your goals, and what you’ve aimed to accomplish, technology can play a crucial role in improving your reporting. Invest in updating your hardware, software and processes so that you can automatically collect the raw data that your nonprofit needs to be able to measure and assess performance. Use analytic tools and big data to help you find areas where you can improve your results to help you find and uncover hidden obstacles in your processes so that you can improve your efficiency and effectiveness. Be sure to include the changes that you have made to increase your impact within your performance report, along with your plans to innovate and create additional improvements in the future.  When creating your report, keep in mind that your stakeholders want to know details about your organisation’s past, present and future, because your NFP’s vision and where you plan to go is just as important as what you’ve already accomplished!

Gain Insight and Recognition for Your Reporting!

Once your annual report for the current fiscal year of 2017-18 is finished, consider submitting it to the 69^th annual Australasian Reporting Awards. In addition to helping increase awareness about your work, and the difference that you are making in the world, it’s a great opportunity to be able to compare your organisation’s results against some of the best NFPs in the world. Each organisation that enters also receives unbiased, constructive feedback on their report, along with strategies they might consider to improve their future reporting.

Your annual report is a crucial piece in establishing your NFP’s brand, reputation and trustworthiness, so don’t let this opportunity to get expert advice on improving your report pass you by! Entries will only be accepted until 7 December 2018, so get yours in today!