After working on the Charity Navigator 2.0 Project, I have been thinking a lot about an organization’s Website vs. The Annual Report. In many ways a website is like an evolving annual report; one that is easily edited, can display reader feedback and dialogue, and allows for dynamic, media rich ways to tell your story; video, audio, interactive games, or real-time data streaming dashboards.
So why have an annual report? They can be awkward to edit and search through. Most people want information instantly. The small amount of time users are willing to spend at Charity Navigator is a possible indicator that these same users aren’t going to want to spend a half an hour reading an annual report .PDF file. Websites are much faster, easier to search through, and more interactive. Annual reports are also extra work for an organization from a graphic design standpoint. However, I think annual reports have a lot of value for the three reasons below:
• An annual report forces you and your staff to take reporting seriously
• Your organization has a report in a format that can be physically distributed
• The annual report can serve as a historical reference
First, it’s important for your organization to be able to effectively present information. I have seen a number of websites - and Annual Reports - that do not do this. Info dumping is common, where quantitative data is mixed with qualitative data to the point where you can’t glimpse the larger picture quickly. But I have also noticed that information presented in the annual report is, in some cases, not given on the website. www.Playworks.org is a good example. Their reporting on sources of funds and uses of funds is nowhere on the website, but is given in their annual report. So annual reports take reporting more seriously.
Second, many organizations still solicit donations in person. If you are meeting with the board of a foundation, or a wealthy local resident you want to be able to hand them an attractive and professional document.
Third, The annual report serves as a historical reference. A website can do this also, but websites are easily changed, and frequently updated - making time comparisons much harder unless the organization presents this info.
Does anyone have any reasons to add or does anyone think that annual reports will die out as web reporting gets better?
Enterprise Community Partners Inc. published a good .PDF document, Annual Reports: Presenting Your Successes. It was written in 1999, but I still found the information useful.
Andrea,
ReplyDeleteI like your post and I like the pros and cons you present regarding annual reports. I am taking PAFF 526 this semester which is managing information and technology. I'm sure some others in the class are as well so feel free to chime in. Just this past week we reviewed some studies done Lee (2004) along with Kang and Norton (2004). Each of the authors states that elements of effective reporting for governments and nonprofits are that the reports are downloadable, or printable, and easily transferable (meaning they can be emailed). So, although a website can provide a more simple way to report on your organization, formalized reports almost make it more "official."
I also agree with you that employees should know that reporting is to be taking seriously if it is going to be done on an annual basis. This forces them to 1. keep good records and 2. understand that their outputs will be presented formally and they should strive for improvement on an annual basis.
For the most part, I am in favor of the annual report Andrea. I agree with you that it serves as historical document and helps organizations to value the reporting of their figures.
ReplyDeleteAs far as donors are concerned, if you really wanted to understand the work an organization was doing, wouldn't you read the annual report? I think that the 80 percent of people who only use Charity Navigator when making an assessment do so because their options are limited. By providing an annual report, an organization can show that it is actively trying to evaluate itself and, perhaps, improve.
Thanks Matt! I will try to find those articles.
ReplyDeleteDan, I think you're right. I would be interested to know what amounts charity navigator users donate to the charities they research through the site. People spend little time there, but do they go on to spend more time at the organizations website? It would be interesting to know more about the CN users behavior, not just how they use the site.