A few considerations for direct mail fundraising as nonprofit postage rises 5% this July
By Carmen Campbell, Director of Production and Purchasing
Happy birthday to me!
As I write this article, I’m looking forward to my birthday coming up soon. Just so you know, I’m one of those people who still love to celebrate birthdays. No matter how old I get – and I’ll be 55 this year – I still want to celebrate them.
Something I really liked when I was younger was getting that “Back in the day” sheet, which would show you events, popular items and prices from the year you were born. As BDI’s Director of Production & Purchasing, looking at the prices from 1968 got me thinking about how different prices are today, especially postage rates…
When you look back, you think, “Wow! I can’t believe things were so cheap.” And as you get older, you think, “Wow! I can’t believe things are now so expensive.”
As I look back at the cost of items in 1968, here are a few prices I just can’t believe…
- New house – $14,950
- Gallon of gas – $0.34
- New car – $2,750
- First-class stamp – $0.06
Fifty-five years later, in 2023, look at national average prices now…
- New house – $543,600 (3,636% increase)
- Gallon of gas – $3.61 (1,061% increase)
- New car – $48,763 (1,773% increase)
- First-class stamp – $0.63 (1,050% increase)
I know that might seem like a huge increase in postage in the last 55 years, but it’s still less than $1.00. In Canada, a stamp costs $1.30, and in France, it’s $2.23. I could keep naming other countries, but I’m sure you see my point here…
U.S. postage is still not that much, especially when you think of what goes into that service (getting your mail from point A to point B): postal wages/compensation, transportation, gas, equipment maintenance… and the list goes on.
Just so you know, postage rates are increasing again in July.
The post office now schedules rate increases every January and July of the year. In July 2023, postage for nonprofits is going to increase by approximately 5%. I know 5% sounds pretty small, but when you’re mailing a lot of pieces, it definitely can affect your overall budget.
BDI is making sure we’re getting the lowest postage rate possible to ensure our client partners don’t experience a substantial increase. For more information on what that involves, please feel free to reach out to your strategist (if you’re a BDI partner), or send me an email.
Just imagine, one day my grandkids born in the 2020s will look “back in the day” and marvel at how cheap a single stamp was in 2023! Birthdays really are a good opportunity for putting things in perspective.