Let’s start with a little quiz:

What’s the difference between an impact report and an annual report?

Impact reports are usually shorter and don’t always include financials.
An annual report covers one year of work, while an impact report can span any timeframe.
An impact report is just a new name for an annual report—they’re basically the same.
All of the above.

If you answered “All of the above,” you’re not wrong. The truth is, the difference between an impact report and an annual report depends on who you ask—and in many cases, the terms are used interchangeably.

If your organization hasn’t created one before, the idea of putting together an impact or annual report can feel a little overwhelming. But don’t let that stop you. These reports are powerful tools for sharing your mission, highlighting your progress, and building trust in your community. The cost of not creating one is greater than the effort it takes to put one together.

For years, annual reports were the go-to format for nonprofits to present a year’s worth of work. One reason I love the shift to calling them impact reports is that it frees you from the calendar. Yes, it’s still best practice to create one at least once a year, but calling it an “impact report” gives you the flexibility to highlight your work over any period of time—six months, 18 months, or even since your organization started.

So, what’s the real difference between an impact report and an annual report? Not much. It really comes down to whether you want to stick to a yearly timeline or keep things a little more flexible. Impact reports can still include the same elements—stories, stats, photos, and yes, even financials.

How often should you publish one? Ideally, once a year. But if your bandwidth, funding, or timing doesn’t line up perfectly, don’t let that stop you—that’s the beauty of calling it an impact report.

Whether you call it an impact report or an annual report, the goal is the same: to share the progress you’re making and the impact you’re having. It’s one of the best ways to keep your supporters informed and connected.