I wonder about the main purpose of an annual report.  I am beginning to suspect it is as much about a fundraising opportunity as it is a recognition of past donors or celebration of the programs and achievements.  I believe a great annual report can be a bit of both.  Highlight the programs and services.  Provide me with a quick glance of the spectacular impact of your enterprise.  Secondly, put as many names in print as possible.  Everyone likes to know they have been acknowledged- even if it is as anonymous.  Third, make a pitch for future support.  If you engaged and recognized well why not capitalize on the moment.

Be honest with the recipients- the annual reports that most confuse me are ones that try to achieve a fundraising angle without being obvious.  Tell me you have an ongoing need and give me a chance to participate.