Lizzy Bird is a charity accountant at Wyatt & Co Chartered Accountants. In this blog, Lizzy shares her top tips on writing a good Trustees’ Annual Report, TAR for short.
If you’re new to writing a Trustees’ Annual Report – or you usually just copy and paste last year’s and want to do better – this blog is for you. It will help you write a more engaging and purposeful Trustees’ Report that not only meets the requirements but also serves your charity well.
Estimated reading time: 5 minutes
In this article:
- How do you use your Annual Report?
- Who is reading your Annual Report?
- Achievements, impact, and future plans
- The required sections and checklist
- Reporting for larger charities (optional for small charities)
- Other areas you might include
- Make it your own
How do you use your Trustees’ Annual Report?
While your Trustees’ Annual Report is a formal requirement for the Charity Commission, consider how it might also support your wider communication. Given the time and effort you invest in writing it, could it double as a tool to inform supporters, donors, or members?
Many churches and charities already use the ‘Achievements and Performance’ section of the report as a year-in-review for their community. I’ve seen great reports enhanced with photos, such as leaders receiving awards, volunteers in action, food parcels being distributed etc. These images tell a powerful story.
For example, one church created a one-page infographic highlighting its impact. They included it in the report and sent it out with their annual thank-you letters. There are plenty of creative ways to make your Trustees’ Annual Report more engaging and widely used.
Who is reading your Trustees’ Annual Report?
Your report and accounts are public, available on the Charity Commission’s website. They might be read by your bank manager, a potential lender, a grant funder, or a future donor. If you plan to apply for funding or loans, it’s worth taking the time to tailor your report for these readers.
Think about your audience – regular supporters, beneficiaries, funders. What do you want them to know about your charity’s story, your work, and your impact? Use your report to open that window.
Achievements, impact, and future plans
Every charity must report on its achievements. Larger charities need to show progress against their stated objectives, but even smaller organisations benefit from this approach. It helps create a consistent narrative over time, showing how you’re meeting your charitable aims and pursuing your vision.
Impact can be hard to measure – especially for faith-based charities – but don’t shy away from describing the difference you’ve made. Use stories, quotes from service users, and real examples of changed lives. Talk about new projects, partnerships, or areas of outreach.
Also, provide context for your numbers. If a leader has stepped down or a social or political change has affected your work, explain how. Has income dropped, or has a new funding source emerged? Give your readers the narrative behind the figures.
You’re also required to summarise your future plans. This is a great moment for trustees and leaders to revisit the strategic plan. Outline your objectives for the coming year, how you’ll achieve them, and then, next year, reflect back – did you meet those goals? Celebrate your progress, share your aspirations, and be honest about your challenges.
The required sections and checklist for a Trustees’ Annual Report
Some parts of your Trustees’ Annual Report are more technical. These include your governing document, trustee recruitment and public benefit statement. But even these can be tailored to your charity’s voice.
For example, don’t just state that the trustees have had regard to the Charity Commission’s guidance on public benefit. Explain how your work benefits the public. What services do you provide? Who benefits and how?
Here you can download a checklist of reporting requirements for larger charities following the Charities SORP.
Reporting for larger charities (optional for smaller charities)
Some reporting requirements only apply to larger charities, but smaller organisations may still find them useful. If you aim to grow or want to be more transparent, smaller charities can consider adopting some of these practices now.
Grant making
If you support other charities financially – even as a small part of your work – include a section explaining why you chose those charities and how this supports your own mission.
Volunteers
Volunteers are vital. Highlight their contribution. You might want to name and thank volunteers who went above and beyond – a retired couple running a café, an intern supporting a project, or someone leading a key service.
Financial review
Often, this section just presents the figures, and a fund accounting software like ExpensePlus can help you with this. But it’s also a chance to explain the story behind the numbers. What significant events influenced your finances? Use this section to thank regular donors and explain key changes.
Reserves
All charities must disclose how much they hold in reserves and why. Larger charities provide more detail – how free reserves are calculated, what their policy is, and what steps are being taken to reach the desired level. Even if you’re a smaller charity, it’s worth including these points.
Investments
If you hold investments, consider including a summary of your ethical, social, or environmental investment policy – especially if the board has spent time developing one.
Risks
Every charity faces risks. Use the report to show you’re actively managing them. Identify your key risks, explain what you’re doing about them, and demonstrate that the Trustees are engaged and proactive.
Other areas you might include in your Trustees’ Annual Report
You can add sections that align with your charity’s focus. For example:
- environmental impact
- safeguarding practices
- social action projects
- a statement of faith (for churches)
- updates on buildings or assets
- notes from a quinquennial inspection
- a personal message from the chair of trustees.
These can help readers understand your work and values more deeply.
Make it your own
Ultimately, this is your report – make it reflect your charity. Engage your readers, highlight your achievements, and make the process valuable for your trustees. It’s an opportunity to reflect on your strategy, risks, and finances, and to celebrate your mission.
While the Trustees’ Annual Report should be approved by the full board, you can involve different team members in drafting relevant sections. And once it’s complete, share it widely. Ask for feedback. Use it as a tool to build connections and trust with your community.
Lizzy has a Master’s in Charity Accounting and Financial Management, and a PgDip in Charity Accounting accredited by the ICAEW, working at Wyatt & Co Accountants based in Leeds.
