Donation Letters: How to Choose the Right Postage
Strike a Balance Between Quality, Speed and Price
Have you heard this saying? Cheap, Fast, and Good. Pick two.
When it comes to choosing postage for your year-end appeal, this project management truth definitely applies.
You just can’t have all three. So depending when you want your donation letter to drop, you’re going to have to make a choice.
A few weeks ago, I made this handy graphic below for a webinar. It covers everything you need to know about your bulk postage choices – and it’ll save you from having to navigate the U.S. Postal Services website.
Trust me. You have much better things to do with your limited time. So I did it for you!
Choice #1: DIY first class (good and fast)
Paying for a 55 cent, first-class stamp on each letter has its advantages. For one, it’s the fastest way to get your year-end appeal to donors – usually within 3-5 business days.
With a first-class stamp, you also save time. And your time is definitely in short supply this time of year.
You’re only going to make one trip to buy postage. And you can buy first-class stamps nearly anywhere – at the post office, Costco, or your local grocery store. Then you can just give the letters to your carrier or drop them in any mail collection box.
A stamp looks more personal than an permit imprint (often referred to as an indicia). That’s the little box you see on bulk mail that has a permit number. People like to open things with cool-looking stamps – not so much with indicia.
Finally, the post office will send you back any letters that are undeliverable. So there’s a possibility you can resend, or simply update your database for future mailings.
Bottom line: First-class is the best choice if you’re short on time (It’s December) and you want your letter to look like a piece of personal mail. But it’s going to cost you.
Choice #2: DIY nonprofit machinable (good and cheap)
Your next choice is the middle ground. With the nonprofit stamp (a.k.a nonprofit machinable rate, pre-canceled stamp option) you get the look and feel of a real stamp, but at a discounted rate.
You do have to have both a nonprofit authorization number (NPA) and a precanceled stamp permit to mail at this rate. You’ll have to make two trips to the post office. First, you’ll buy your precanceled nonprofit stamps at the post office counter. They cost 5 cents and come in coils of 500, 3,000, and 10,000.
Unfortunately, you can’t buy just what you need. And what you pay initially will not be final postage total.
Once you stamp your mail, you’ll complete an electronic or hardcopy postage statement, which will help you determine how much postage you still owe USPS. Then you’ll take the whole mailing back to the post office where you hold your permit, where they’ll inspect your mailing and charge you for the remainder of the postage.
Then there’s your delivery time. Because you’re using a reduced rate, the postal service will prioritize first-class mail over yours. And if it’s December, you’ve got a lot of competition from people’s holiday mailings, retailers and other nonprofits. You may need to go the first-class route.
Bottom line: This is a good in-between option. Just keep in mind it can take up to 14 days for delivery.
Choice #3: DIY nonprofit automation: (just cheap)
Which brings us to your final option: nonprofit automation rate. This is going to be your least expensive option – but it’s going to cost you in time if you do it yourself.
First off, you’ll need to have a nonprofit authorization number (NPA) and your own permit imprint (indicia) in order to use this rate. And you’ll need to acquire software to imprint a barcode in the address block.
Then you’ll need to pre-sort your mailing – no matter how large it is – in trays or bins according to individual ZIP codes. If you’re only dealing with one or two ZIP codes, this is totally doable. If it’s more, and you have those Giving Tuesday emails to get out, then this is going to drive you crazy.
Finally, you’ll pay via an account when you hand deliver your mailing to the post office. There will be lines. And your mailing will be subject to the same delays as we mentioned with the nonprofit machinable rate.
Choice #4: Outsource Mailings (Good and Fast)
Of course, you can outsource mailing services or both printing and mailing services to save yourself the time and headache of doing it yourself. Consider using Abeja’s donation letter service. Each of our tried-and-true designs comply with USPS automation requirements.
If you have something special in mind, Abeja can help you design a letter or holiday card that is USPS compliant and then source a printer that works best for your situation.
Choice #5-100: A Little This, A Little That
Of course, fundraisers have found some creative ways to split their mailings to get more bang for their buck. For example, you can use first-class stamps on mailings to your major donors, and the nonprofit automation rate on letters to everyone else.
I’m happy to chat about options if you don’t want to read through the Domestic Mail Manual (it is a pretty decent insomnia cure).
Giving Season is already stressful enough for fundraisers – be kind to yourself. Make sure to leave yourself enough time to get it all done and that any monetary cost savings don’t come at the expense of your personal health and sanity.
