As each February and March roll around, it's not uncommon to look around a non-profit organization and find that practically everyone's work revolves around getting the annual report out. It can be a pretty stressful time. Many organisations in India suffer from lack of adequate documentation, or worse, poor and inaccurate documentation. Often, this is more due to a lack of time and skill than a lack of intent. Staff in organisations is generally busy getting ahead with the actual programme and left with very little time to document the accomplishments. But come January and the pressure to get the information out and co-ordinated with other departments, as well as the budget, begins to build. The information is often written up from memory and invariably by people who have not been involved directly; the net result is, well, a disaster within glossy covers!
The first step is to actually plan the report itself - what goes into it, who writes it and how will it be presented. At present unlike the corporate sector, there are no standard norms or regulations that regulate the content and dissemination of annual reports by voluntary organisations.
Annual reports are to be made available for public distribution. However the definition of the word 'public' varies from one organisation to the next; therefore it is up to the voluntary organisation to decide whom their report should be made available to. The organisation must define its own constituency, stakeholders and other groups. Organisations can restrict distribution of the annual reports to persons outside their constituency. However, transparency and credibility are best served if reports are made available to anyone who asks for them (subject to funds available to print and distribute copies).
The guidelines listed here are categorized as 'Minimum Norms' and 'Desirable' ones. No particular order to present the information is recommended - that is up to each organisation to decide for itself. The content for the Minimum norms can be limited to two sides of A4 paper; and twice as long if the Desirables are included too. Some organizations will want to produce one copy based with only the minimum norms listed; others will want to produce a longer report. Some organisations will want to produce both types. The length of the document, and the creativity invested in it, are quite discretionary.
Annual Reports for Voluntary Organisations - Content guidelines
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Organisational Information
Minimum Norms
- Name of organisation, registration date and number (as applicable to various Acts), registered address of the organisation and address for communication if different to the registered address.
- Names of board members, role in the organisation (President etc)
- Names and addresses of main bankers, auditors
- Numbers of staff (full-time and part-time, male and female ratio, paid and voluntary).
- Networks/ linkages with other organisations
- Historical details - origins, brief history, vision, mission of the organisation
- Area of competency of board members, number of board meetings attended in the year (to be indicated in brackets).
- Names of legal advisors (if applicable)
- Organisational structure or organogram
- Gender of Board members
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Programme Information
Minimum Norms
- Objectives and descriptions of main activities undertaken during the year including communities and beneficiaries served and areas of operation.
- Review of the progress and results achieved in the year (facts and figures demonstrating achievement at local, state, regional, national and international levels).
- Major plans for the future (if any).
- Information regarding internal or external evaluations/ audits conducted on programmes (if any)
- A summary of the way the organisation operates, number and type of staff, network/ linkages with other organisations etc.
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Financial Information
Minimum Norms
- Abridged Balance Sheet; and Income and Expenditure account. The report should state which basis of accounting has been used (cash or accrual). Information on previous year's accounts to be presented. (See attached recommended framework)
- Annual Report to be made available within eight months of end of the fiscal year.
Desirables
- Complete audited statement of accounts with schedules to be included in annual report; or to be made available on request, or for a fee.
- Annual Report to be made available within three months of end of fiscal year.
- Percentages to be mentioned next to said amounts in financial statements and graphs and charts to facilitate easy understanding of information.
- Main financial and or physical achievements/ observations to be shown separately as 'performance highlights'
- Appeal to be included in the Annual Report to reinforce the point that the organisation is looking for funds; also a statement of thanks to donors; and an invitation to visit the organisation.
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Governance related Information
Minimum Norms
The following to be disclosed as notes in the Annual Report- Total amount of remuneration and reimbursements to board members/ trustees and number of board members who receive remuneration from the organisation
- Gross remuneration (salary and benefits) of the CEO / Director.
- Total cost of national and international air travel by all personnel (including volunteers).
Desirables
- Relationship between board members
- Gross remuneration of the three highest paid staff members and the lowest paid member
- Distribution of staff according to salary levels
- Details on international travel, name of traveller, purpose, sponsorship details etc.
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Other information
- Stories of change in Annual reports give a personal touch and help the reader understand the work your organisation is doing.
- Statement of achievements/ list of your organisation's major achievements in bulleted points will summarise the significant accomplishments in the previous year.
- Say 'Thank you' to donors and well-wishers; donors of large amounts and small and interesting visitors, may be mentioned by name. Possibly even include a quotation from a donor's letter or remark from the visitors' book. An invitation to visit the agency can also be included. The most important three words in your report could be 'We welcome visitors'.
- A geographical map of where your office is situated.
