When assessing a request for funding, in addition to your submission funders will also be looking at other publicly available information, in order to get a clearer and more comprehensive pictures of your charity, CIC or community group’s work. This includes things like your social media presence and website, but also your published accounts, trustees annual report (if you’re a charity) or CIC 34.

Yet, even though we regularly attach these to our funding applications, very few of us make the most out of this document. Not only do we want to make sure our accounts tell a story which is well aligned with our fundraising, but for funding applications with very limited word or character count they provide an invaluable opportunity for extra information and rich qualitative data like participant stories and quotes. And where we can’t include images on application forms, they also provide the space to present your work more visually, including with photographs and infographics.

So what should you include in your Annual Report?

Your annual report provides important accompanying information to the accounts, it helps people understand what your charity does and should tell the charity’s story in a balanced manner, acknowledging both significant successes and failures.

TAR’s should follow a specific structure, and the Charity Commission provides guidance on what they should include – in particular for charities with a turnover above £500,000, who should follow the guidelines set out by SORP.

But Trustees can present the contents of their report in any order and under any headings that they choose. And although reporting requirements are lighter for small charities, a great, thorough report can have even more value when you’re less well-known

Things you might want to include, to help you make the most of this document:

• acknowledgements and thanks to current funders. This shows prospective funders others have already trusted you with their support
  
• information about your future plans. Vision is always great to galvanise fundraising. This can also be a great opportunity to include your theory of change.
  
• case studies and quotes from beneficiaries. This report provides the space for you to get your impact across through the voices and lived experiences of the people you support. 
  
• images and design elements will make reading your report a much more pleasant experience, and help you get your point across. Photos and infographics can also all be repurposed, and be used in your comms all year round.
  
• make sure your financials tell a compelling, clear story, which marries well with your figures and your fundraising strategy. Liz Pepler, of Embrace Finance, runs some really great sessions on Charity Finance to help you achieve this.
  
• keep your audience in mind – This document is a brilliant opportunity for you to be more transparent with your stakeholders and reassure your donors and funders that you’re investing their money wisely and running an efficient organisation which delivers what you set out to do.
  
• Think about accessibility – you should write your report in a way which is clear and easy to understand for a range of stakeholders. Depending on the people you work with you might want to provide easy read, plain text options, translation or a video summary in BSL.
  
  

Resources

Charity Digital, Six impact reports to inspire you https://charitydigital.org.uk/topics/six-impact-reports-to-inspire-you-9941

Image credit: Poole Communities Trust Annual Report, 2022-23