A nonprofit organization’s executive team prepares and sends a board report to the board of directors before a board meeting or at other regular intervals. A board report is a concise summary of the nonprofit entity’s financial status, overall performance, strategic initiatives, and risks. Such reports are a first-line communication tool between the management team and the board of directors. They are a building block for discussion, decision-making, and guidance during board meetings.

Typical nonprofit board reports include:

•       Business successes
•       Statistics and facts
•       Future organizational plans
•       An agenda for the upcoming board meeting

The board acts as the governing body of a nonprofit. The board’s role is to provide both advice and oversight. According to a 2020 study by Harvard Business School and Russell Reynolds, the most effective boards at high-performing companies (also known as “Gold Medal Boards “) exhibit the capacity to “refocus the board agenda. “Essentially, this is the job of your board report –  to help the board members effectively function in their role by focusing on what matters most. But how can nonprofit success be communicated through board reports?

Don’t Save the Best for Last

The success of a nonprofit shouldn’t be buried somewhere down in the board report—it may never be noticed or read. Keep in mind that it’s the first one or two slides in a board report that board members will focus on. These first pages are valuable real estate and should be used to tell the high-level story of how things are going anything pressing or important—including nonprofit success. Successes can be listed in the executive summary in bullet point format or an overview of recent performance.

Focus on Key Success Metrics

Make your board report success metrics easily understood by using slide headers that highlight the main messages in conjunction with a high-level commentary. The text can provide the board with a good picture of recent performance without having to scrutinize the metric charts closely. You may want to incorporate color coding or icons to highlight areas of success (green/check) or risk (red/cross/exclamation point).

Include Successes in Organization Updates

While metrics frequently focus on the past, the organization update section focuses on leading instead of lagging indicators and can provide advice on future proposals. Although this section can feature past successes, it’s also an ideal place to share ongoing achievements of the nonprofit and to feature potential new endeavors that the executive team would like to be successful.

Drafting a board report is often time-consuming and frustrating, but investing your time in reflective report prep is imperative to keep investors updated, secure support from your board, and communicate the nonprofit’s successes. It’s also a chance to take a step back from day-to-day business operations and consider the nonprofit’s overarching strategy. A thoughtfully prepared, effective board report will help build a more impactful and successful nonprofit.

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