Nonprofits rely heavily on mail for fundraising, outreach, and advocacy. However, mailing costs have become a significant concern for these organizations due to a few key factors:
Rising Postage Rates
The USPS and other mail services have periodically increased their rates. Even modest increases can have a big impact on nonprofits, especially those sending large volumes and/or frequent mailings. For example, a penny increase per piece could mean tens of thousands in added expenses for a mid-size mailing.
Budget Constraints
Most nonprofits operate on tight budgets and depend on donations, grants, and government funding, funding that’s been rapidly shrinking recently. Rising operational costs can divert funds away from mission-critical programs and services, putting increased scrutiny on staff and management who are expected to direct as high a percentage as possible of donations to their organizations’ programs and services.
Reliance on Direct Mail
While most for-profit businesses have shifted to primarily digital communications, nonprofits still depend on physical mail for a variety of reasons:
- Donor Preferences: Older donors, who often contribute more, tend to prefer mail over digital communication. Some may not even be reachable by email.
- Better Response Rates: Direct mail often outperforms email in terms of donor response rates, especially for acquisition campaigns.
- Tangible Impact: Physical mail feels more personal and trustworthy to some recipients.
Cost-Reduction Strategies for Nonprofit Mailings
Mailing List Hygiene
Cleaning your mailing list regularly to remove bad and invalid addresses not only cuts costs but also improves your ROI. Review your mailing lists regularly (we suggest before each mailing, or at least quarterly if you send frequent mailings) for duplicate addresses, invalid or undeliverable addresses, and deceased individuals. The National Change of Address (NCOA) is a valuable tool for updating your mailing lists.
Print and Format Efficiencies
The size and shape of the pieces you send can greatly affect the cost of your mailings so choose wisely. While unusual shapes and sizes may attract attention, standard sizes and weights qualify for lower postage rates. Postcards and self-mailers are even more cost-effective with the added benefit of your message being easily read without the barrier of an envelope.
Co-Mailing, Co-Mingling, Co-Pal and More
By co-mingling your mail with others, you can qualify for greater discounts and, oftentimes, better deliverability. Drop shipping your pieces to the destination city is also a great option. A savvy mail logistics company can help you determine the best strategy.
“It’s not just about getting a lower rate,” explains Chris Albright, Chief Planning and Logistics Officer at Altrans Postal Solutions. “When you drop your mailer at the local post office, you’re rolling the dice when it comes to delivery. It could get to its destination in 5 days, 5 weeks, or 5 months. Unfortunately, without good logistics planning and knowing where to drop it into the system for optimal deliverability, you won’t know when your audience is going to receive your piece.”
This is why Chris is a fan of services such as co-mingling and co-mail because of their trackability. Not only do these services save money, but they also provide some accountability, letting you know where your pieces are in the system and when they’re delivered.
Leverage the Available Opportunities
By implementing these cost-saving strategies, nonprofits can continue to leverage the benefits of direct mail while mitigating the impact of rising costs and budgetary limitations, ultimately allowing them to allocate more resources towards their core missions. A mail logistics company can be a valuable asset, providing not only the manpower needed, but also the specialized expertise to ensure that not only are the maximum discounts realized, but also that your mailings are delivered in a timely manner.
For more information on mail planning and logistics services, or to secure a no-obligation quote, contact the Altrans team today.
