Annual Report is Not Memoir, I’m Not Interested In You

Think clearly of what your annual report can and should do

Interestingly, subsequent to my last blog post on the strategic position of fundraising events, I received a similar enquiry about the positioning of an organization's annual report, which reminded me of the annual reports I received from a charity before. I admitted that their annual reports were all nicely designed visually and well written too literarily, but in terms of contents, it was very focusing… focusing on telling how great their organization is and how wonderfully each department have done their job alongside the usual compulsory items such as the financial report, donors acknowledgement and etc. It is absolutely fine if they were considered corporate brochures. It is not uncommon that when thinking of annual reports, organizations were fell into the trap of inward looking. To understand how to structure an annual report for charities, it is better to try to think from the recipient's perspective. Why does donor give us their gifts? Why supporters volunteer their time and expertise? What's the reason prospects interested in putting us on their consideration list? Do you agree that they are indeed making a long-term investment through us as an organization? An investment in the collective long-term societal benefit and advancement. If this is the case, what will be the focal point when they read an annual report? The ROI, return on investment for sure! Like investors in the financial market, they are interested in knowing how much was yielded from their investment. So to be specific in the social sector term, they are keen on seeing what and how much positive change and impact was brought as a result of their investment. Got it? Once this was established, it is pretty easy and straightforward in constructing and directing our annual report by telling what positive changes took place among our beneficiaries, service users or the areas that we served instead of concentrating on showing off how great that ‘i-bank or fund house' was. As soon as we have the strategic position of the annual report determined, the second question is always that what message are we going to deliver in the report and how? Referring to the aforementioned annual reports again, the worst of all was that when they share their departmental works, it talked solely about what they did, not what they brought. In addition, it gives a strong impression that each department is trying to outdo each other and afraid they would look bad by being perceived as contributing less than others. Thus, the outcome was always pages of a very long list under each department of every single programme and activity, large or small that they have done in the reporting period whereas there was also duplication among departments because some of those were interdepartmental programmes. Does it make sense from a reader's viewpoint? Have you ever read an annual report by any listed company illustrating separately of what their accounts department, administration department, HR, marketing and other teams did over the last 12 months? I doubt! If this thinking applies, why not list out every single employee’s effort and contribution? The organization as a whole and the collective achievement is what outsiders regarded. The proven way in doing so compellingly is by telling stories. Countless of researches confirm that telling personal stories are the best way in connecting to people emotionally and creating a lasting memory whereas illustrating of merely facts and figures have a relatively short life of memory and less able in engaging. I understand some organizations have the internal policy restricting them in revealing beneficiaries' identity and sharing of their stories due to the issues they are engaging in. Beneficiaries' stories are surely the best possible one in showing the direct effect of an organization brings but it can also be stories of donors, volunteers, Board members or even staff. There must be something appealing to these stakeholders at the first place in attracting them to the organization and like beneficiaries, the more and deeper they engage with the organization, they are likely to be impacted by the organization's work too despite the fact it comes in a very different way from beneficiaries experienced. Their stories are of the same degree of importance in suggesting the organization's significance and the purpose of its existence. Not only it has to tell what was brought to the society, the message could also be inspirational, which trigger readers to imagine and visualize what else and what more could be done through the work of the organization as an engagement trick. For example, you might challenge the common perception and assumption that surrounding the issues of which your organization is advocating and/or addressing in guiding your readers to see things from another angle, which helps path the way in reasoning your resolved strategic ways forwards and differential yours from similar-minded organizations in getting supports, hopefully, enormous amount of support.