Coping with the Change in Mailing Rates

Non-profits may lose the discount for postage rates but could that be just the push they need to focus on using the internet to raise funds? In early October 2012, the United States Postal Service (USPS) announced their proposal for postage increases to take effect on January 27, 2013 and which has since passed the Postal Regulatory Commission (PRC) review.

Opposition to the new rates includes among its leaders Jason Lee, General Counselor for the Association of Fundraising Professionals, and the Alliance of Nonprofit Mailers, a US national coalition of nonprofit organizations. Opposition retorts that nonprofits are besieged from a budget standpoint as our nation’s leaders attempt to rein in federal spending and this assault will impede the efforts of nonprofits to fill in the gaps for state and local government aid programs for the poor. The argument is that the legislation will punish nonprofits and the people they serve, and the USPS should not punish nonprofits for its own inability to control its own costs. Ultimately, in the long run, nonprofits will end up using less mail as a response to the change in rates, which will in the end hurt the USPS.

How can nonprofits respond to the proposal? It may not be as simple as we hope, especially because it’s not like nonprofits have extra money to pay for higher prices. Many organizations have switched over to electronic newsletters, and those that have not should consider adding the option this year. It would be a potential loss of  the older adult demographic that relies on print for communication, but then again, it might be a better long-term proposal for nonprofits to plan a gradual reduction in mailings over a period of a few years as they shift to social media outlets. 

The advent of tools like Facebook, Twitter, and blogs are rapidly changing how nonprofits communicate with and engage their supporters and the community. In 2012, the top two dominant channels of communication were websites and email/E-newsletters. Completing the list , in order from third place to last; Facebook, Print (newsletters/direct mail), in-person visits, and media relations. In 2012, use of email and E-newsletters rose 75% from 2011. Only 51% of nonprofits continued direct mail in 2012. Finally, video is currently rising in importance as technology advances in social communication.

For more information on ways nonprofits are adapting see:

(1)   http://volunteermaine.org/blog/the-changing-face-of-nonprofit-communications

(2)   http://www.nonprofitmarketingguide.com/blog/2012/01/03/2012-nonprofit-communications-trends-infographic/

(3)   http://philanthropy.com/article/Online-Fundraising-Makes-Gains/136125/