Charities face hike in postage costs (UK)
Charities are facing spiralling postage costs after Royal Mail warned it can no longer guarantee to reimburse them when donors put stamps on freepost envelopes.
The move, which it is claimed could cost charities millions of pounds in extra postage costs, has been sparked by the introduction of new automated sorting systems. In the past, many charities have encouraged the practice as it saves them thousands of pounds a year.
The issue is understood to have been raised with Royal Mail by client group Direct Marketing in Fundraising Group (DMiFG). Following the DMiFG’s enquiry, Royal Mail has contacted a number of charities to clarify that the terms and conditions of the Business Response Service do not allow for postage to be paid by the sender, and that the practice should be discouraged.
Cascaid strategy and planning director Roger Lawson says: “Ultimately, this is going to cost the sector a lot of money. Over the years it will be in the millions.”
Lawson adds: “It’s a shame if it comes down to automated sorting, because I can’t believe that Royal Mail can’t produce a machine that can identify whether or not there is a stamp on the envelope.”
One insider predicts that the decision will damage the reputation of many charities who are constantly under pressure to reassure supporters that they keep their administration costs to a minimum.
He says: “This was the one area where the Royal Mail showed some compassion towards the good work being done by the charity sector. If they withdraw this service, charities will no longer be seen to be doing the right thing. And ultimately it could dissuade charities from using direct mail as a channel.”
A Royal Mail spokesman says: “There has been no change to the Business Response Service policy. It has existed since the product was introduced and we would encourage people to stick to the rules of the product.”
He also clarified that any charity that could prove postage had been paid for items twice would be refunded.
Charities are facing spiralling postage costs after Royal Mail warned it can no longer guarantee to reimburse them when donors put stamps on freepost envelopes.
The move, which it is claimed could cost charities millions of pounds in extra postage costs, has been sparked by the introduction of new automated sorting systems. In the past, many charities have encouraged the practice as it saves them thousands of pounds a year.
The issue is understood to have been raised with Royal Mail by client group Direct Marketing in Fundraising Group (DMiFG). Following the DMiFG’s enquiry, Royal Mail has contacted a number of charities to clarify that the terms and conditions of the Business Response Service do not allow for postage to be paid by the sender, and that the practice should be discouraged.
Cascaid strategy and planning director Roger Lawson says: “Ultimately, this is going to cost the sector a lot of money. Over the years it will be in the millions.”
Lawson adds: “It’s a shame if it comes down to automated sorting, because I can’t believe that Royal Mail can’t produce a machine that can identify whether or not there is a stamp on the envelope.”
One insider predicts that the decision will damage the reputation of many charities who are constantly under pressure to reassure supporters that they keep their administration costs to a minimum.
He says: “This was the one area where the Royal Mail showed some compassion towards the good work being done by the charity sector. If they withdraw this service, charities will no longer be seen to be doing the right thing. And ultimately it could dissuade charities from using direct mail as a channel.”
A Royal Mail spokesman says: “There has been no change to the Business Response Service policy. It has existed since the product was introduced and we would encourage people to stick to the rules of the product.”
He also clarified that any charity that could prove postage had been paid for items twice would be refunded.
