Not-for-profit - don't just tick the box

As charities and other not-for-profit organisations prepare their 2019 annual financial reports they have the opportunity to openly and transparently report, inform and explain their strategy and what they have done with the money entrusted to them. While numbers can reflect the revenue inputs and expenditure outputs they will not capture the outcomes and/or the impact the charity has made nor do they capture volunteer contributions. This is why the narrative report that accompanies the numbers is critical as it provides key information for stakeholders and tells the charity's story.

The challenge for any organisation ( charitable or not) is how to adhere to the ever increasing compliance requirements and integrate these into a report that brings the organisations activities and performance to life, telling the charity's story.

Here are some tips:

• ensure the narrative is consistent with the information presented in the accounts;
• consider the audience and their information needs over and above the compliance requirements;
• less is more...focus on the mission, tell the story in a meaningful way but be balanced. discuss the impact of your activities;
• report results by reference to benchmarks, KPI's and other metrics;
• Keep the reporting contemporary by focusing on the present and the future - not just the past;
• make linkage, signpost and cross reference to cut clutter;
• use info-graphics;
• use the narrative report to highlight the key information in the accounts.

Most of all plan early and be prepared to challenge what has gone before - take the opportunity to de-clutter those old accounts and make them more focused, relevant and dare I say, enjoyable to read!