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The video tutorial discusses the importance of creating an annual report to update donors on the accomplishments of the organization. It emphasizes that the report doesn't have to be complicated or fancy, but should contain key information to make donors feel good about their decision to give. An example from the Humane Society of Greater Dayton in Ohio is provided as inspiration, showcasing a simple and concise trifold brochure format. Reporting back to donors is essential even after the end of the fiscal year to maintain trust and support.