In our last blog, Annual Report Challenges: Why Nonprofits Struggle, we explained that annual reports are powerful data storytelling tools that can engage donors, impress board members, demonstrate accountability, and encourage continued support for your mission. The blog covered the types of data to feature – outputs versus outcomes – and provided a list of common mistakes to avoid.
Now, we’ll discuss the first essential element of annual reports in our blog series: Identifying Your Audience First. Identifying the right audience for your annual report is crucial to ensuring that it resonates with the reader, includes the right information, and lands in the correct hands.
Let’s dive in.
Element 1: Identify Your Audience First
The Mistake: Creating a generic annual report that tries to be everything for everyone, resulting in content that resonates with no one.
The Solution: Before writing a single word, map out who needs to see your annual report and what specific information matters most to each group of stakeholders.
Key Audiences to Consider
- Board Members seek governance accountability, financial evidence, and strategic direction results. They want to see how the past year’s organizational decisions translated into impact.
- Major Donors look for impact confirmation and their return on investment (ROI). They need to understand how their financial contributions generated measurable change that aligned with their philanthropic goals.
- Community Members want local relevance and tangible proof of how your nonprofit affects the greater good of their neighborhood, city, or region.
- Potential Supporters (prospects) need mission clarity, organizational credibility, and a compelling reason to get involved.
- Staff and Volunteers appreciate recognition and want to see how their individual contributions to everyday operations connect to the organization’s broader success.
Strategic Implementation
- Create content sections tailored to different audience needs
- Use varying data visuals such as financial charts for the board and photo-forward impact stories for the community
- Consider producing supplemental one-pagers or rack cards for specific audience segments
- Survey key stakeholders about what information from your organization they find most valuable
Real Example
When we reimagined Infancy Onward’s annual report, they were wanting to expand their reach beyond their traditional audience of a primary funder to reach new audiences – other funders, professionals and community partners. This broader approach changed the content of information included with less jargon and more lay-audience-friendly language, a more visual layout, a digital file and a broader distribution list, resulting in more people consuming the information and growing awareness of their important work.
Up Next in the Series: Essential Element 2 of Annual Reports
Leading with a Story and Supporting with the Data
In our next blog, Essential Element 2 of Annual Reports: The Story, you’ll discover that data is your secret weapon to enhancing the power of your best stories. Data and storytelling truly are partners in crime – without each other, they’d both fall flat and risk losing the audience’s attention.
Read Essential Element 2 of Annual Reports: The Story now.
Additional Resources
Listen to the Full Episode
In Episode 25 of the W(h)ine About Data Podcast, our Communication Manager, Morgan Ellis, sits down with our President, Amanda Lopez, to discuss practical strategies for creating annual reports that stakeholders actually want to read and share with their networks. Whether you’re producing your first annual report or refining an established process, this guide breaks down the 5 essential elements every nonprofit annual report needs.
Listen to the full conversation, or continue reading the blog series for key takeaways and actionable tips you can implement immediately.
Related Blog Posts
- Annual Report Challenges: Why Nonprofits Struggle
- Element 2 of Annual Reports: The Story
- Element 3 of Annual Reports: The Mission
- Element 4 of Annual Reports: The Design
- Element 5 of Annual Reports: The Distribution
- What’s Your Why
- 4 Strategies for an Effective Annual Report
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