Nonprofit Impact Report: Everything You Need to Know [ +Examples]
A nonprofit impact report is just what it sounds like – a detailed look at how your organization has changed the world during the described period. But sometimes, hitting the right tone with your report can feel impossible. If you're not sure what to include or how to make a report that boosts donor trust and drives more donations, you've come to the right place! Read on to learn the six easy steps to create your impact report and check out some examples to inspire you.
You’ve done the work of courting a donor, securing a donation, and working toward your nonprofit’s mission. Well done! Now comes the next part: creating a nonprofit donor impact report so your donors know what you accomplished with those hard-earned donations.
It can be tricky to decide what all needs to go into an impact report. You don’t want to overwhelm your readers with information, but you don’t want to look like you’re holding back on everything you’ve done for the past year, either.
We’re here to help! In this guide, we’ll share everything you need to know about nonprofit impact reports.
What is a Nonprofit Impact Report?
A nonprofit impact report, sometimes referred to as a donor impact report or simply a nonprofit annual report, details what your organization has accomplished in the last calendar or fiscal year.
A nonprofit impact report usually includes three main types of reporting:
Numbers – A great report includes numbers documenting your organization’s impact. For example, if your organization works with many different countries, you might number how many countries you worked with that year. You might list the number of participants for events or the number of dollars your organization leveraged to better serve your target communities.
Description – Just like you can use numbers to highlight your impact for the year, you can use words to describe everything you accomplished. The written part of your nonprofit annual report should be carefully managed to not overwhelm your readers. When writing these descriptive passages, you can simultaneously appeal to your audience’s logic and emotion, showing clearly how you helped and why it’s so important that you did.
Pictures – Pictures really are worth a thousand words, and they do a lot of work in impact reports. Donors like to be able to see–in clear, easy-to-understand ways–how their donation has helped someone. And if you can show them a picture of someone they helped, that will connect them even more to your organization.
When and Why Do Nonprofits Need an Impact Report?
As a nonprofit organization that takes donations, you know how much responsibility that requires. You must accept donations securely and legally. You must maintain a relationship of trust with your donors. And creating an impact report is an important part of that process.
Donor impact reports are typically published quarterly or annually. Publishing quarterly reports is usually necessary for organizations that are very active, with multiple campaigns a year, several events a quarter, and many donations. Publishing annual reports is more appropriate for smaller or less active organizations.
You need to create impact reports for the following reasons:
It’s the right thing to do – Just as you complete your annual reporting to the IRS or other reporting agency, providing your donors with an impact report is the responsible thing to do. It shows you’re accountable–which helps with the next item on this list.
It encourages your donors to give again – If you’re accountable, donors are more likely to trust you with their donations again. Plus, once you show them how much good their donation did last year, they are more likely to feel like giving to your organization was worthwhile!
It thanks your donors – Part of your report includes a sincere thanks to your donors.
It inspires new donors to give – Nonprofits add these reports to their websites, making them easily accessible to visitors. If potential donors can see your impact, they are more likely to give.
It helps track the history – Impact reports help you track your progress throughout the years and provide insight into the history of your impact.
How to Create a Nonprofit Donor Impact Report
Now that we’ve covered why impact reports matter, let’s take a look at how to create one.
1. Gather your intel
Your impact report should include some good numbers representing your accomplishments. Therefore, you first need to gather the data behind those numbers. Meet with your team and ask them to pull the following types of information for whichever period you’re covering:
1.1 Donations and donors’ data
Amount of total donations
Amount of new donors
Number of campaigns run
Demographics of donors
Location of donors
Donorbox helps you easily collect all this information. On your Donorbox account, you can explore the options for campaigns, donations, and supporters to collect data on donors, members, and event attendees, as well as all the campaigns you’re running and donations you have collected online on Donorbox. You can also add offline donations to Donorbox so all your data lives in one place.
Donorbox CRM offers even more detailed data. Use Jay·AI to pull information about your donors and funds, track detailed donor demographics, and more. Discover everything CRM has to offer in this blog.
Some readers of your impact report may be connecting with your organization for the first time. Some will likely be potential donors. It’s important to include organizational information as a sort of introduction to the people that power your mission – and to show that you manage funds responsibly.
Consider adding the following:
List of all board members with short bios.
Staff list, program and campaign managers, fundraisers.
Revenue and expense breakouts for financial transparency.
1.3 Mission-specific data
This section should detail your organization’s progress over the past year. How have you served your mission? How have your organization’s efforts moved the needle on your cause?
Include the following types of information:
How many lives you served during the time period.
How many countries or areas you impacted.
Hours spent working toward your organization’s mission.
Programs, campaigns, events, goals, etc.
Event participation.
Any major fundraising campaigns you may have launched.
2. Choose your format
Depending on how much information you decide to include, you might choose to create a PDF document or a page built directly into your website. Adding your annual report or impact report directly to your website makes it easy to access and more dynamic as you can link to other material on your website or even include animations.
Whichever you choose, remember to focus on readability, attractiveness, and clarity of information.
3. Create the design template
The best impact reports are designed to be pleasing to the eye. You want readers to be able to access the most important information right away–without getting bogged down with too much noise.
Think easy-to-read infographics along with charts and graphs. You want to illustrate your impact, and design is a great way to do that.
Pro tip: The design of your report should match the branding of your organization. That means colors, textures, and shapes should feel cohesive both throughout the document and with your nonprofit organization’s other branded material. When it comes to design, consistency is key!
Bonus Resource: Use this detailed webinar on data visualization to learn how to tell a story with your data:
As mentioned above, pictures can do so much work in your impact report. The right picture can illustrate so much more than data ever can and can help you create a comprehensive document that truly shows your organization’s efforts.
Add pictures that illustrate why your mission is important. For example, a picture of a school child smiling with the new backpack that your organization provided is a lot more powerful than a picture of the backpack by itself.
Pro tip: Be sure to only use pictures that your organization owns and/or has permission to use. This is not the time to use stock photos. The more your images seem connected with your organization and mission, the better.
5. Write text
In addition to the numbers, design, and pictures, you’ll need to write descriptive text to go in your annual report. This is where you can provide qualitative data.
This might include:
A letter from your president or CEO thanking donors and explaining how their donations made your mission impact possible.
A description of an event, program, show, or day of outreach.
Testimonials from individuals your organization helped.
A blurb about the organization’s plans for the next year.
A description of the importance of your mission, alongside your mission statement.
Pro tip: Just as your design needs to match your organization’s branding, your written text should too. Think about the tone that best fits your organization: Conversational? Academic? Professional? Whatever it is, be sure to write with some level of authority so your readers know they can trust what you’re saying.
6. Publish
Decide how you’ll roll your impact report out. Usually, this will include an email to present donors, a post on social media, and sometimes even a direct outreach with major donors so they know you’re thinking about them.
You should be proud of your impact report, both of what it details and how it looks/reads. Getting the word out there–that it’s ready and live on your website–will add to your appearance as an organization that takes pride in what they do.
3 Excellent Nonprofit Impact Report Examples for More Inspiration
Now it’s time to see these tips in action with three note-worthy examples of nonprofits showcasing their impact.
1. New Energy Nexus Global Impact Report 2023
In the 2023 global impact report for New Energy Nexus, there are many pictures of the entrepreneurs the organization sponsors with explanations of the products the organization supports. These pictures are effective because they bring people to the page – they show that there are real people behind the scenes who are benefitting from this organization.
But there are many other reasons why this impact report has made it to our favorites list! It included the following:
An efficient breakdown of numbers with ample data.
A letter from the Chief Energy Officer with quote highlights and an image.
Concise descriptions of their vision, mission statement, strategy, and approach.
Solution spotlights based on locations.
Several case studies showcasing their work.
A page dedicated to helping people get involved in their mission.
We love this report for its attention to every important detail.
2. Code for America Impact Report 2023
We love how Code for America adds their impact reports right on their website, making for an easy-to-navigate and attractive reading experience.
Their report includes:
An inspiring message from the CEO.
Detailed looks at their impact organized by each project.
An interactive map to navigate through each project.
Helpful illustrations and clear impact numbers.
A breakdown of their leadership’s demographics.
And more. They also share a look into what the future holds, making it easy to see how their success in 2023 can be replicated and expanded.
3. Wellington Zoo Impact Report 2023/2024
This annual impact report from the Wellington Zoo details all of their activities, goals, and achievements for their fiscal year.
Here are some elements that work well in their report:
Stunning design with the right choice of colors, fonts, and images on every page.
Letters from the leadership.
A clear demonstration of role and purpose.
A thorough description of animal welfare practices and programs.
Information about workshops, innovations, and research projects.
Highlights of collaborations and partnerships.
Photos and explanations of special events and community days.
Business continuity plans, decision-making strategies, and budgets.
Breakdown of revenue and expenses.
Explanation of the current financial state.
And more. We love this report’s detailed approach to transparency. It truly paints a complete picture of the zoo’s activities for this fiscal year.
Over to You
When it’s time to create your impact report, let the facts of the last year or quarter guide you. A good impact report addresses all questions, with one main mission: to make donors feel like their donations were used well. And to encourage those who haven’t donated yet to give to your mission.
To create the best impact report for your nonprofit, you need an online system that helps you collect, store, and manage data. Donorbox and Donorbox CRM are your one-stop shop for all things data and fundraising.
Donorbox has helped over 80,000 organizations fundraise through simple, affordable, and outcome-driven features like Recurring Donations, customizable Fundraising Pages, Crowdfunding, Peer-to-Peer, Events, Memberships, and more. Check out all our features here.
Explore tons of helpful articles on fundraising and nonprofit management on the Donorbox Nonprofit Blog.
Lindsey spent years wearing many hats in the nonprofit world. Whether she was helping arts nonprofits with their messaging and content, planning a fundraising gala, writing an NEA grant proposal, or running a membership program with over 400 members, she learned how to navigate – and appreciate! – the fast-paced world of fundraising. Now, she loves sharing those hard-earned lessons with the Donorbox community.
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