What should be included in a non-profit annual report?

What is included in a non-profit annual report?

Compelling annual reports from non-profits can highlight the journey, mission, impact, and goals achieved during the year. It is usually sent to the donor base as well as stakeholders. Annual reports give stakeholders and donors information on what the non-profit has been doing in the last year. This increases the non-profit’s levels of accountability, transparency, and trustworthiness. Georgen Scarborough, experts in tax and financial consulting services, can tell you here what should be included in a non-profit’s annual report.

More and more non-profit organizations are going paperless with digital annual reports while some older, more traditional ones still prefer hard copies that can be felt and held by their donors. However, the two main questions to ask yourself before embarking upon the development of an annual report are:

  1.     Who is the audience you are targeting?
  2.     What information do you want to convey?

Georgen Scarborough recommends including the following to build a comprehensive, well-round annual report:

Mission and vision

Begin your annual report by structuring the values and purpose of your non-profit into a concise and clear statement. This is the non-profit’s mission statement. The missions statement provides supporters, donors and stakeholders with firsthand information on your objectives before delving into more comprehensive data.


The main focus of the annual report should be on the accomplishments of the last 12 months. This includes the events, the number of volunteers engaged, breakdown of projects, and the like. Using statistics and visual representation of these figures can be a powerful way to showcase your achievements.

Financial statement

It is important to tell your donors and supporters how their money is being used for a good cause. Be transparent and honest about your organization’s finances, which can enhance trustworthiness too. A comprehensive representation of the organization’s expenses can encourage supporters to donate more, especially if they feel you have handled the donations responsibly and effectively.


It is necessary to show your gratitude by highlighting the major contributors, supporters, board members, and hardworking staff members. These are who have helped accomplish all you have done in the last 12 months. You can also end the annual report with a list of donors, irrespective of how much they have contributed in cash or in-kind, to thank them.

For more information on how to create an effective and donor-centric annual report for your non-profit, contact Georgen Scarborough today.

Best strategies in tax reporting for nonprofits

Best strategies in tax reporting for nonprofits G&A Expense allocation

Tax reporting for nonprofits

Being a charitable non-profit does exempt the organization from paying income taxes. However, it is important to file an annual information return every year. Most charitable nonprofits have an obligation to file an annual information return with the IRS. Read on to find out the nitty-gritties from Georgen Scarborough on how to report taxes for nonprofits.

How nonprofits file tax returns

The type of tax return filed by a nonprofit organization depends on its size and type. Learn which Form 990 is applicable for your nonprofit below.

Form 990-N

This is the simplest tax return. Form 990-N applies to small nonprofits with gross receipts of less than $50,000. This form must be submitted by the 15th day of the fifth month following the organization’s tax year.

Form 990-EZ

Nonprofits can submit Form 990-EZ when they meet certain conditions. Firstly, they would have annual gross receipts of less than $200,000, and secondly, assets of less than $500,000. They must report on:

  1.     Revenues, expenses, and changes in net assets. (Part 1)
  2.     Simplified balance sheet (Part 2)
  3.     Statement of program accomplishments (Part 3)
  4.     List of officers, directors, employees, and stakeholders (Part 4)
  5.     Miscellaneous questions (Part 5)
  6.     Only to be filled if the non-profit is exempt under 501 (c) (3) (Part 6)

Form 990

If you are a nonprofit with annual gross receipts of more than $200,000 and assets of $500,000, then you would submit a Form 990. Simply enough, page one of this form is similar to Form 990-EZ. However, Form 990 requires detailed information about the organization as well as additional attachments. This Form is open to the public. So, the organization’s Board or senior-most personnel should review and approve the information.

Not required to file

Certain organizations receive tax-exempt status from the IRS. These include:

  • religious or church-affiliated organizations
  • specific political organizations, or
  • black lung benefit trusts.

These do not need to submit a Form 990.  However, if they are engaged in unrelated business activities, a Form 990-T is required annually.

If you are a charitable nonprofit organization, contact Georgen Scarborough for more information on tax reporting for nonprofits.