As the year begins to come to a close, many organizations begin to reflect on their wins and areas of growth. For many organizations, it means reflecting on the work that has been done throughout the year and beginning to reflect on the progress the organization has made. As part of this reflection, many organizations will begin to consider the work that they have been doing and the impact that they have had on the community, as well as plans for the future. This is where an impact report comes in, also commonly referred to as year-end reports.
An impact report is intended to provide insight into the work that an organization has done throughout the past year and how they have helped the community or affected the environment in which they operate. It is also a way for organizations to show the value of their work and to acknowledge those who have helped them accomplish their goals for the year.
You might be wondering what the benefits are. Well, I’m here to tell you! In the world of nonprofit work, there are a lot of great organizations that need support to ensure that the work they do continues to improve the lives of the people and communities they serve. But to be able to determine which of these organizations need the help, many funders look to impact reports to decide this. So by having an impact report, your organization gives prospective funders an idea of the work that you do and the impact you have had on the community. This means that they are able to see the value of your work and are able to see how much funding will assist in the overall mission. Impact reports tell a story, approved by you, which highlights the wins, what you learned from losses, and how things can change in the future. It also allows you to continue to uphold organizational strategy and goals. We can not know where we are going if we do not know where we have been. Therefore, the impact report is extremely important in telling the story of the successes of the organization over time and showing how the future can change based on past programs.
To create a successful impact report you should be sure to include the following items:
- A mission and vision statement outlining the organization and its goals for the coming year. I typically encourage all of my clients to also include their D.E.I. values statement, as it’s a great way to build awareness around your social impact within the organization.
- Highlights of the wins you’ve had throughout the year, as well as an overview of programming. In addition, you can highlight partnerships or successes in the community.
- Financial reports. What were you able to accomplish with this year’s budget? What were some of the challenges you had to overcome? How did you overcome them? Were there any unused funds at the end of the year? Any changes that will be made next year based on the needs of the organization. What is the projected budget and total revenue for the next year? This will allow donors, the community, and staff to know the impact that the work has alongside the impact donations have.
- Outcomes-based on your programming, including stories from participants and/or community feedback. This is a good place to highlight some of the big events you organized during the year.
- Data that is relevant to the programs you are running and to the community, such as data on audience demographics or the type of program or service you were offering. We also recommend that you mention sources. Even if it is internal tracking, it’s good to mention it.
- Real stories and pictures from the community you work with, graphics always look cool on impact reports. The narrative you use to tell the stories and describe everything that the organization does should be consistent throughout the report.
Impact reports are a great tool all organizations should invest in to create awareness around their impact on the community and with their stakeholders. It has a multitude of uses and can carry a lot of needed information to donors, stakeholders, community members, and staff. It also is a great way to help track your progress over the year and build awareness of what your mission is and how you are working towards it. As your nonprofit grows, these impact reports will become a necessity. They should be started as early as possible so you can continue to grow with your cause in mind. Do not be overwhelmed by them, there are resources and organizations (such as ours) that can help you through this journey. If you have not yet started your impact report, I would highly recommend that you consider it in the near future as it is an essential tool that will benefit your organization and the community as a whole.