For 25 years, PMG has been committed to advancing the missions and protecting the budgets of nonprofits.
The Postal Regulatory Commission recently requested stakeholder comments on the latest postal rate increase. Here’s what we submitted.
To The Postal Regulatory Commission,
Our company is seriously concerned about the recent postal rate increases and their negative impact on our nonprofit clients’ direct mail fundraising programs.
Production Management Group (PMG) has provided direct mail production management services to nonprofits for over 25 years, primarily to support their fundraising and membership efforts. We work with scores of national and regional nonprofit organizations dedicated to saving lives, helping animals, protecting the environment, finding cures, and more. Our nonprofit clients are providing direct services to those in need in communities nationwide and operate with much greater efficiency than government entities – which has become especially apparent during the pandemic. Our country needs a healthy and effective nonprofit sector.
The PRC and the USPS, especially in this age of corporate social responsibility, should support nonprofit direct mail fundraising efforts by offering the lowest postage rates possible.
Why are nonprofits so dependent upon economical direct mail programs?
- The vast majority of revenue for most nonprofits is generated through direct mail.
- Direct mail provides a predictable revenue stream for nonprofits.
- Net income (which is significantly impacted by postage costs, the most expensive line item in direct mail campaigns) supports mission activities.
- Acquiring donors through the mail is essential to the long-term health of nonprofit fundraising programs.
Direct mail provides a pipeline of future major donors and bequests. A large national nonprofit study from AnalyticalOnes indicates:
- One-in-six of first gifts from $2,500+ donors was through traditional direct mail acquisition
- One-in-four of first gifts from $1,000-$2,500 donors was through direct mail acquisition
Major donors making large gifts don’t appear out of thin air – a significant percentage of these donors first learn about nonprofits through direct mail.
Industry research also shows:
- 50% – 70+% of planned gifts (will bequests, etc.) were originally direct marketing donors
- 60% – 80% of planned gifts originated with giving less than $25 (through the mail.)
Nonprofits are dependent upon direct mail fundraising to build and grow their donor bases and to raise funds to conduct their missions. Continuous postage rate increases threaten their ability to plan and execute strong direct mail programs. Many nonprofits are seriously considering cutting back on larger volume acquisition efforts, and in fact many are already focusing instead on digital channels for acquisition.
Please consider offering nonprofit organizations reduced postage rates moving forward. It’s the right thing to do.
Polly Papsadore and the PMG Team