DMA: Postal Rate Rise Makes Nonprofits Test Other Channels

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The most recent postage rate increase not only may hurt program delivery by nonprofit organizations, but encourage nonprofits to use other channels, according to a study announced yesterday by the Direct Marketing Association.


"Given the close dependence of nonprofit organizations on direct mail for fundraising, especially with charities, it is clear that postage rate increases must only be undertaken as a last resort," Senny Boone, executive director of the DMA's Nonprofit Federation, said in a statement.


Peter Johnson, senior economist at the DMA, backed that assertion, saying the postal increase affects nonprofits in three areas:


· The ability to raise funds and deliver programs.


· The share of nonprofit budgets accounted for by direct mail fundraising and program delivery.


· Efforts to reduce mail costs and find alternatives to the mail.


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