The current administration has advocated for the privatization of the USPS. This initiative creates a lot of questions and sends a shiver down the spines of development directors for nonprofits that rely on mail appeals to raise a significant portion of their budgets.
For nonprofits, the most significant is the possible elimination of the nonprofit postage rates. This could double or triple the current postage expenses for mailing appeals, which will cut deeply into the net revenue generated by direct mail cultivation campaigns.
Fortunately, there is something your organization can do right now that will increase your net revenue: mail smarter.
Analytical Ones also provides a donor selection service called A1S. Our A1S method scores each donor according to their giving history and then segments them into 104 segments that includes donor channel response and match-back revenue. Our approach yields a 10-15% lift in net revenue over regular RFM donor selection – which will go a long way in mitigating postage increases.
If you’re concerned about the coming postage crisis and are still using an RFM-based donor selection method for your fundraising, it’s time to be more strategic and explore options like A1S.