Postage costs increase again, evaluate how you interact with your donor base

A proposed increased in the US to raise the cost of a first class stamp from 44  cents to 46 cents might sound fairly insignificant on the surface but to smaller non-profits who are very reliant on mail campaigns it may greatly hamper fund-raising strategy in the new year. In percentage terms the 4.4% increase is being sought by the US Postal Service to keep up with running costs (primarily due to changes in the cost of fuel) and in all likelihood the proposal will be approved in time for the suggested price hike in January.

Non-profits worry that the jump will effect the impact potential of donor seeking newsletters and pledge drives that are reliant on mail as a key point of contact. A non-profit that generates bi-monthly newsletters for 75,000 approved names is looking at typically processing and mailing out 450,000 units per year. At an additional 2 cents per item the associated increase in costs of $9,000 might lead to a need for a different approach to keeping on contact with their donor audience. Non-profits express that mail increases seem to outpace other associated running costs and the evidence may well support that. The January increase would be the 7th in a decade, during which time a first class stamp will have risen from 33 cents to 46 cents. The same non profit example cited above would have seen annual postage costs increase from $148,500 per year to $207,000 per year; a spike of almost $50,000 overall. Such overheads leave non profits facing either reducing the frequency with which they mail literature, send to fewer recipients or take away from the net donations by increasing overheads.

Fortunately the digital age we are now in allows non-profits to diversify the way they interface with their specific audience and being creative might be the key to override the sizable increases in postage costs. Email can obviously replace many traditional mail options, asking if donors prefer to ‘opt-out’ of regular mail correspondence would be a highly recommended practice. Many people will actually prefer to receive an email which not only reduces paper consumption (and costs) but can provide them direct links to your website, press releases or other targeted online options. Given the choice many recipients will be happier to click on a link that allows them to donate now rather than open a letter, go online and need to hunt for your website and payment options. An engrossing and current online face to your non-profit is a critical component to your campaign and can be further enhanced by active facebook, email and twitter campaigns.  The postage hikes may just present the inspiration to move your platform that is more reliant than ever on the internet and social media, worth noting is that if used effectively (listen to your donors, poll your donors, interact with your donors) the attention to online campaigning or telephone campaigns can provide you much better contact with and support from your donors than mail was ever capable of achieving.

As with all things finding the right blend is the ideal way to enhance the profile of your non-profit, the more avenues you can find to communicate with your audience especially if they can elect/select those methods is the best road to success. At Miratel Solutions we have over a decade of experience providing the best resources to assist your telephone fundraising or charity lottery campaigns.