With postage prices increasing year-on-year, sending out direct and membership mailings can eat into large amounts of a Not for Profit organisation’s communication budget.
In March, Royal Mail announced price increases of 3p on its core postage services, with the price of a First Class stamp for a standard letter up at 70p; the price of a Second Class stamp for a standard letter rising to 61p; and the cost of franking also increasing by 3p.
These increases, coupled with the rising cost of paper and ink, pose a difficult challenge for charities looking to reduce expenditure whilst continuing to use a communications method which has been notoriously successful for the Not for Profit sector.
There are many ways that Not for Profit organisations can reduce the cost of direct and membership mailings, however, one of the simplist methods, is to partner with a trustworthy expert to mitigate VAT charges on mail – a tactic that could reduce the cost of second class mail items by around 20%.
These cost reductions are achieved when experts, such as Adare SEC, act as the licence holder in a contractual arrangement with Royal Mail. As Adare SEC has a direct relationship with Royal Mail, it can treat the wholesale element of any mailing as a disbursement, creating cost efficiencies which are passed directly to their clients without any VAT being attributed; this is a HMRC approved process which many charites are already benefitting from.
Direct and membership mailings continue to be a fortuitous method of communication for the Not for Profit sector. Regardless of GDPR and changes to how data is shared, mail still plays a key role in the way Not for Profit organisations fundraise and raise awareness. On average £1.73 is raised for every £1 invested in direct mail.
Not only does mail provide a tangible ROI, it’s more impactful. Physical mail activates areas of the brain responsible for long-term memory, significantly more than both email and social media advertising.
JICMail (the Joint Industry Committee for Mail) delivers industry standard audience measurement data for mail. It found that 31% of all addressed advertising mail resulted in a commercial action such as visiting the sender’s website or making a purchase, and mail was found to be 33% more engaging than email and 35% more engaging than social media advertising. It therefore makes sense for charities to continue using mail as a medium for fundraising.
With reducing costs high on the vast majority of charities’ agendas, closely behind generating income and meeting demand for services, now is the time to speak to Adare SEC about its approach to VAT mitigation and tap into the company’s wealth of experience in best practice solutions for the Not for Profit sector.
 Fundratios 2015, Centre for Interfirm Comparison