If you’re with me so far, you know that your nonprofit really needs an annual report, that you can afford to produce one, and that your annual report has to tell stories. Another thing your annual report needs to do is to radiate gratitude.

Remember, you’re producing an annual report because your funders expect it and your donors deserve it. It’s not only that you need to demonstrate that you’re accountable, that  you’ve done what you said you’d do with the money you received –  although that certainly is true. What you also need to demonstrate is that you are grateful for the money you received.

And don’t forget why you need to do all these things: so that funders and donors will give you more money.

Call it enlightened self-interest: You want to make your funders and donors feel all warm and fuzzy about helping you so that their oxytocin receptors will demand more of the feel-good drug called philanthropy. And then they will send you more money, and then you will be able to do more good work in the world.

So don’t be ashamed or afraid of being sappy. Sappy is good. Say it loud and say it proud: “Thank you! Your gift/grant made a difference in someone’s life. We couldn’t do it without you!”

Remember Marisol’s story from last week’s e-letter? If not, go ahead and read it. I’ll wait.

You’re back? Great. In an actual annual report, Marisol’s story would probably include more detail, more suspense, and a photo. I left out a lot to fit it into my e-letter.

But I left out something much more crucial than detail and suspense. I left out the thank you. Let me show you how that would work. To make it interesting, let’s assume that your nonprofit is not Historic Settlement House, the direct service provider, but Independent Afterschool Intermediary, a citywide or statewide organization that provides professional development and other resources to Historic’s afterschool program. Your version of Marisol’s story goes like this.

Your gift helped us change Marisol’s life.
When Marisol came to the afterschool program at Historic Settlement House, she wolfed down her snack and accepted any and all leftovers from other students. Today, Marisol eats the snacks she prefers and leaves the ones she doesn’t–just like most seven-year-olds.
The difference is that Marisol’s father now has a job, thanks to the English classes and job training programs at Historic. He got into those classes thanks to the training we gave Marisol’s afterschool teacher, which showed her how to build trust with parents so that she could suggest additional services.
Marisol’s afterschool teacher got that training thanks to your generous donation to Independent Afterschool Intermediary.

I chose the harder version to show you that nonprofits that don’t provide direct service nevertheless can tell stories and be grateful. If you are Historic Settlement House, your job is easier. Either way, the trick is to link funders’ and donors’ money to the ultimate recipients and to say thank you over and over and over again.

How many ways do you know to say “Thank you”? Use them all in your annual report.

You can learn more ways to say thank you – and ways to tell stories, ways to bring your work to life with photos, and ways to make even the financial pages radiate gratitude – in the four-week e-course Your Nonprofit Annual Report: The Basics and More!

I developed this self-paced multimedia course with Pamela Grow, author of Simple Development Systems, to give you a complete toolkit for producing an annual report that brings in money without breaking the bank. Read all about Your Nonprofit Annual Report: The Basics and More – and sign up today!

Do you have questions about annual reports, about the e-course, or about nonprofit communications generally?