What a Great Idea! – The Nonprofit Annual Report

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Is your nonprofit publishing an annual report? If not, you may be missing a big opportunity. Funders are interested in this report and posting it to your website is becoming a more important part of accountability and transparency standards. Having an annual report is required by Guidestar to have their Guidestar Exchange seal. If you have program accomplishments you’d like to brag about and are fiscally sound, this is a wonderful opportunity to toot your horn.

Writing an annual report does not have to be a “going to the dentist” experience. Here are a few ideas:

  • Keep it brief and crisp.
  • A picture is worth a thousand words – Use them to show off your programs in action.
  • Charts work best for financial information – Pie, bar, line – whatever tells the story best.
  • What to put on charts – Sources of income, program distribution of funds, program/administrative distribution of funds, growth in clients served/audience/customers and whatever statistics you would like to show off
  • Feature major accomplishments rather than a long laundry list of everything you did last year
  • Tell anecdotal stories
  • Highlight a client, volunteer, board member or staff member

Before you start, check out the NonprofitMarketingGuide.com by Kivi LeRoux Miller. On the subject of nonprofit annual reports, Kivi has an e-book, a pre-recorded webinar, a lengthy list of examples with links and free articles at her website. She is the expert in this field. Kivi has a four page annual report model, a postcard model and a video model

On my blog at Marion Conway –Nonprofit Consultant I have just posted an article – From a Foundation Perspective – What Makes An Effective Nonprofit? – that summarizes a report on this subject by the Association of Small Nonprofits. One of the items they recommend foundations review is the annual report. If you’d like to see what else is on the list, visit my blog now.

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For more resources, see our Library topic Nonprofit Capacity Building.

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Fundraising Ethics

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The question was raised, recently, why the (ManagementHelp.Org) Library doesn’t have anything about fundraising ethics, so Carter McNamara added a subtopic heading under Fundraising, and sort of suggested that it would be a good idea to address the issue in this blog.

This is, therefore, the first (hopefully) of a number of postings on Fundraising Ethics … the total number of postings depending on the questions/issues raised by readers.

I don’t want to write a list of “thou-shalts,” or “thou-shalt-nots,” and I’m hoping that there will be lots of comments/questions. I’ll offer a couple of basic concepts and ask a few questions to get the discussions started, but if this is to go anywhere, it’s going to be up to you to respond.

Fundraising ethics addresses, among other concepts, the rights of the donor, the public’s right to know, the appearance/reality of conflict-of-interest and how those issues impact the people served by the nonprofit organization.

One concept, one reality upon which a lot of this is based, is that since nonprofits are tax-exempt organizations eligible to receive tax-deductible contributions, everyone else’s tax bill is higher to make up for the taxes that nonprofits don’t pay and for the break that donors get in reducing their taxes.

In essence, nonprofits are publicly supported; and, as such, they are responsible to the communities they serve and to the broad public in general. Nonprofits are not private organizations; they don’t belong to any one individual, not even the individuals who create them. What NPOs do, and even what they plan to do, is (should be) open to the public.

So, to stir things up … a few questions:
   1. Is it ethical for an NPO to hire a firm to run a carnival/fundraiser
      where the NPO realizes $10,000 it wouldn’t have had, while the
      vendor actually retains 90% of the generated income ??

   2. Is it ethical for a major donor to a hospital to get his/her child
      moved to the top of the “treatment” list ??

   3. Is it ethical for the CEO of a nonprofit to recruit family members
      to serve on the organization’s board ??

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Have a comment or a question about starting or expanding your fundraising program? Email me at AskHank@Major-Capital-Giving.com. With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, we’ll likely be able to answer your questions.