Hi Cindy – When I was in the non-profit sector, I’d be responsible for producing the annual report for organizations as the communications/development guys…so I’d collect others to find the best elements and here’s what seemed to work well:

1) Letter / Message from Key Leader

2) Quick Summary (in addition to Table of Contents – an “At a Glance” Summary of the whole report right up front) – could be interesting to make this an infograph or similar…

3) Information / Quantitative data – charts, graphs, etc. – with narrative (again, on each page/section, good to have a quick summary box)

4) Inspiration / Qualitative content – what are the stories of real people in the agency – profiles of citizens / staff / projects / etc.? How did you make a difference that makes everyone feel motivated by the mission? Include pictures (real people, if you can vs. stock photos), large words with quotes, etc. –

5) Prognostic: Vision for the future, how you’ll build on success in past year, mitigate / eliminate risk / failures going forward

Seems simple, I guess…but it probably should be…or know one will read it! 😉