Does your nonprofit need to produce an annual report? Only if you want to raise money.

I know, I know. You’re raising money now. You wouldn’t mind raising more money, of course. But you’re not convinced that producing an annual report will bring in more grants or donations. Also, annual reports are expensive, in both time and money. Why bother?

Because annual reports (a) absolutely are worth the investment and (b) don’t have to cost that much, anyway.

I’ll start with (a) today and give you (b) next week.

Annual reports absolutely are worth the investment – which, as I’ll show you next week, is probably much less than you expect.

If your nonprofit seeks grant funding, you shouldn’t have any question about whether to publish an annual report. After all, most requests for proposals ask for your annual report.

You’ve been sending your IRS Form 990, hoping funders would accept it.

Some of them did. But then, some of them didn’t.

You know you need to give grantmakers exactly what they ask for. That’s reason #1 for doing an annual report. In addition to fulfilling RFP requirements, an annual report also:

• Projects a legitimacy that a government-mandated form can’t begin to reach.
• Shows that you are accountable for the money you receive. (Have you noticed that accountability is kind of a big deal for funders these days?)
• Tells the story of all the good you’re doing in the world.
• Demonstrates your gratitude for the money you’ve already received.

All these points will be covered in detail in Your Nonprofit Annual Report: The Basics and More! – the new e-course I’m launching in partnership with Pamela Grow, author of Simple Development Systems. I’ll also have more to say about them in this e-letter mini-series in the next couple of weeks.

But for now, I only want to say that these points show how much you need an annual report for individual donors as well as for corporate and foundation grantmakers.

Like grantmakers, individual donors also deserve an accounting. Individual donors also deserve your thanks – over and over and over again.

By itself, what donors deserve won’t convince your executive director to invest in an annual report. So try this:

• A large majority – 70 or 80 percent – of first-time donors never give another gift.
• They don’t come back because they don’t feel appreciated.

A thank-you note is nice – essential, in fact. A second thank-you note is even better. A thank-you note accompanied by a simple, high-impact annual report that tells donors how their gift made a difference in people’s lives? Priceless.

Mind you, I’m not suggesting that you mail a 20-page report to everyone who’s ever given you $20. Next week I’ll show you how inexpensive a high-impact annual report can be. I’m just saying that you can – and should – use your annual report to inspire repeat donations – year after year after year.

So, your question shouldn’t be whether you need an annual report. Your question should be how you can produce an annual report that will boost donations and grants.

Pamela Grow and I are prepared to help you answer that question for the low price of only $67.

I’ll also be sharing bits of what will go into the full course in this e-letter – a four-week mini-series starting today. Next up: how to produce a stellar annual report on a shoestring.