💰 How to Present Financials in Your Nonprofit Annual Report

(Without Overwhelming or Misleading Your Audience)

Financial transparency builds trust. But too much detail? That creates confusion.

When it comes to nonprofit annual reports, financials are often the most misunderstood section—by both readers and the people assembling them.

At Elephant Creative Co., we’ve helped dozens of nonprofits present their financial story clearly, confidently, and beautifully. Here's what we've learned about what to include, how to present it, and why unaudited financials are perfectly okay in an annual report.

Myth: “Our numbers have to be audited to appear in the report.”

✅ Truth: Your annual report doesn’t require audited financials.

You’re not submitting this to the IRS. You’re creating a public-facing document that communicates your impact—and the financial story that supports it.

If audited financials aren’t available by the time you publish, that’s okay. You can:

• Clearly label the financials as unaudited

• Add final numbers to a digital version later

• Provide high-level summaries (without full statements)

Transparency matters—but so does clarity. If something is pending or still in review, just say so.

What Financial Information to Include

Your audience isn’t expecting a full audit report. They’re looking for a snapshot that reinforces trust and shows your organization is financially responsible.

Here’s what to include:

1. Revenue and Expenses Breakdown

Show how much you brought in and how you spent it—clearly and visually.

Track and present:

• Total revenue for the year

• Total expenses for the year

• Breakdown of revenue sources (grants, donations, events, etc.)

• Breakdown of expenses by category

📌 How to visually represent this information:

• Pie charts or bar graphs that make these breakdowns easy to digest

• Color-coded categories

• Descriptive labels (“Program Services,” “Fundraising,” “Administrative”)

• Paired narrative or caption to provide context

2. Categorize Salaries Correctly

One of the most common missteps is placing all salaries into a single “Personnel” line item. That creates unnecessary concern from donors and funders.

✅ Instead:

• Place program staff salaries under Program Services

• Place development staff salaries under Fundraising

• Place admin salaries under Administration

This shows how your resources support your mission—not just your team.

3. Revenue Sources That Show Momentum

Be transparent about where your funding came from—but also highlight growth.

Include:

• Earned income (if applicable)

• Donor giving tiers or major gifts

• Foundation and government grants

• Special event revenue

• In-kind donations

Pair with a short narrative or stat that communicates donor or grant momentum.

4. Contextual Notes or Year-Over-Year Comparison

If there was a spike or dip in revenue or expenses, briefly explain why. Was there a one-time capital expense? A new program launch? An end-of-year match campaign?

📌 Pro Tip: You can include a year-over-year snapshot for context, showing growth or changes in key areas.

What to Avoid

🚫 Overloading your audience with dense tables🚫 Using internal accounting terms that readers won’t understand🚫 Listing unrestricted vs. restricted revenue in detail unless relevant🚫 Sharing spreadsheets or PDFs from your finance software🚫 Showing net assets in isolation without explanation

Remember: this section isn’t for auditors. It’s for donors, community members, and stakeholders who want to feel confident in your stewardship.

Format Tips to Make Financials Digestible

✅ Use simple graphs: Pie charts, bar graphs, or infographics✅ Group like items into broad categories✅ Match your brand colors (subtly)✅ Add a short paragraph to explain context✅ Label data as unaudited if needed✅ Keep it to one or two pages max

Final Thoughts

Don’t let financials become the section people skip—or worse, misinterpret.

By clearly labeling data, simplifying visuals, and grouping salaries into the right categories, you help your stakeholders understand how your funds support your mission.

And remember: unaudited is okay—as long as you’re honest, transparent, and clear.

Need help designing a financial section that builds trust without overwhelming?

Let’s talk. Elephant Creative Co. specializes in clean, clear, mission-aligned reporting that connects with real readers.