The objective of an annual activity report is to provide information about an organisation’s activities, its financial performance and ﬁnancial position that will be useful to a wide range of stakeholders in assessing the board/committee’s stewardship and management of the organisation’s resources and funds, and to assist the reader of the report to make decisions in relation to the organisation. Although past, current and potential funders, donors and ﬁnancial supporters of an not-for-profit organisation are the primary audience for the information contained in an organisation’s report, the preparer should also be aware that interest in this information may also extend to an organisation’s service users, other beneficiaries, volunteers and staff (current and potential).
The report should not be viewed simply as a compliance requirement or a technical exercise. The report should help users of the information to understand what the organisation is set up to do, the resources available to it, how these resources have been used and what has been achieved as a result of its activities, how it is governed, how effective it is in achieving its objectives and its future plans.
To help organisations meet compliance requirements and standards of good governance in annual reporting, Carmichael has prepared templates for organisations of various sizes. The templates can be found on the Good Governance Awards website.