Australia Post Reduces Charity Mail Price Hike
Thursday, 4th July 2013 at 10:14 am
Australia Post has backed away from a proposal to significantly increase the costs of Charity Mail by almost 8% after submissions from the Not for Profit sector.
Following consultation with Fundraising Institute Australia (FIA) and other Not for Profit organisations, Australia Post says it has agreed to reduce the planned increase to its Charity Mail rates from around 7.9% down to an average of 4.1%.
FIA says it met with Australia Post as part of the consultation process around the proposed mail price increase which is to come into force from July 15.
Australia Post’s Charity Mail scheme allows income tax exempt charities to save money on bulk mail outs (300 items or more).
“We have taken on board your feedback and that of a number of others in respect of the specific circumstances of the charity sector, and Charity Mail prices are now increasing by an average 4.1%,” Australia Post’s General Manager Mail Products, Mark Roberts said in a letter to the FIA.
“We are pleased Australia Post has listened to the concerns raised by FIA on behalf of the sector and has reduced the rate of increase for Charity Mail by 60%,” FIA Chief Executive Officer Rob Edwards said.
Edwards told Pro Bono Australia that mail continues to be a very popular option for charities and fundraisers while mailouts from other sectors are diminishing.
“For the charity sector, unlike many others, mail continues to be the most successful medium used in donor acquisition and retention.”
He said the charity sector however is caught in a ‘pincer movement’ as Australia Post pushes the price-lever to recover costs.
For Charity Mail, the rate of increase for surface mail will now be reduced from the 7.9% originally proposed to 3.3% and for regular mail the increase will be 4.8% as opposed to 6.8%.
“Given the importance of direct mail for donor acquisition and retention, this is significant and an acknowledgement by Australia Post of the special needs of our sector,” Edwards said.
“Unlike businesses, charities are unable to pass on any increase to the recipients of their services and the hard-won fundraising dollar is squeezed even further.”
The FIA submitted that the proposed increase was untenable on top of the price impost already absorbed by the sector just three months ago.
The submission said that Australia Post’s position of sole supplier…brings with it considerable responsibility to ensure that any pre-emptive move to increase margins does not have the unintended consequences of diminishing the availability of funds to the charitable sector.
For more information go to the FIA submission.