Nonprofits Assuming Corporate Look

Corporations aren’t the only ones sending out annual reports.

Universities, charitable groups and other nonprofit organizations also issue sophisticated reports for donors, trustees, alumni and others.

“Annual reports are just as important for higher education and nonprofit organizations,” said Marcia Wood, vice president of finance at USC, which is printing about 12,000 copies of its new report. “It’s critical that we get our message out there to our constituents, including the board of trustees, banks, bond-rating agencies, donors and our faculty.”

Some nonprofit reports look decidedly corporate: USC’s annual report lists assets and liabilities, is audited by a Big Six accounting firm and has its share of complicated footnotes.

“Annual reports are a timely subject right now because nonprofit organizations have, starting this year, new accounting rules,” Wood said. “The Financial Accounting Standards Board, which sets accounting standards, has decided that it’s now time for nonprofit reports to look more like those from for-profit corporations.”

That’s no big deal for larger organizations, such as USC, that have been using corporate-looking formats for years. But, Wood said, “many smaller institutions are really suffering because there are just a few weeks left to get it done.”

Why do nonprofits bother with reports?

“We’ve developed a lot of relationships with corporations, and the message we want to send to them and our donors is pretty much the same as what a corporation wants to say,” said Marianne McInerney, media relations director for United Way of America.