It is important for charities to communicate what they do, why they do it and the difference they make. The trustees’ annual report is a key part of a charity’s suite of communications and effective reporting helps to build trust.
The Charity Community’s upcoming webinar 'Impactful charity reporting – insights from PwC’s Building Trust Awards’ (10 March 2025) will provide insights on good practice charity reporting and share top tips from Age UK, the Reporting in Charities Award winner, about their reporting journey.
These are our core principles for good practice charity reporting:
- Clear, Cohesive and Coherent – a charity’s reporting should be easy to understand. There should be a logical structure, with alignment between their strategy, achievements and impact, risks, future plans and financial review. It is also crucial for a charity to speak with ‘one voice’ throughout.
- Candid and in Context – a charity can foster transparency through open and honest reporting. Talking about challenges as well as successes can be more authentic and provide greater credibility in telling the charity’s story. Including information about the wider landscape in which the charity is operating also situates the narrative, particularly in a changing environment.
- Concise yet Comprehensive – better reporting does not mean more reporting. Being succinct can often require greater thought to ensure that the key messages are communicated effectively. However, it is important to provide a complete picture of the charity, covering all relevant aspects and going beyond minimum compliance.
- Compelling and Captivating – reporting that is relatable to the reader is powerful, particularly where case studies and stories are used effectively. Visuals and graphical presentations can be more appealing. The adage ‘a picture paints a thousand words’ comes to the fore. An innovative mindset can help to enhance this.
- Connected and Connecting – a charity’s reporting should be accessible and tailored to the intended audience, whether through the use of everyday language or providing reporting in different formats. The narrative offered by a charity should also link to what it is saying elsewhere, and digital and technology can play a role in this.
By adhering to these cornerstones, charities can develop more effective reporting to communicate their purpose and explain their impact. This will instil confidence in their aspirations and achievements.
Building trust
PwC’s Building Trust Awards recognise organisations that are leading the way in delivering sustainable outcomes through insightful reporting. Since 2014, we have reviewed the reporting by charities in the Charity Finance ‘Charity 100 Index’ as part of our annual Charities Award.
With greater uncertainty and increasing pressures across the sector, we have seen a plateau in the quality of charity reporting. A larger number of charities are maintaining boilerplate disclosures or paring back their narrative, after a period where reporting has evolved year-on-year. Against this backdrop, our award for Reporting in Charities celebrates good practice reporting in the sector and enables us to share principles and examples that can be adopted by charities of all sizes.
Age UK was the winner of our award in 2024, determined by an independent judging panel. Its report was recognised for the ‘golden thread’ that flowed across its reporting, as well as bringing to life key aspects of the charity’s work in a balanced manner. National Trust and Save the Children UK were also highly commended for their reporting.
*The views expressed are the author's and not ICAEW's