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Cashflow is the lifeblood of fundraising programs. Your programs are scheduled to maintain a certain amount of cashflow to be steadily coming in and making it possible to run your programs. As you start to plan out your 2022 fundraising programs, we wanted to take a moment and draw attention to how the new first-class delivery standards could impact your cashflow expectations for the coming year.
If you missed it, we published a great blog post on the new standards and how we will see them affect the mail.
As mailers we tend to look at how the mail is getting TO donors. But today we are going to look at how the donations make their way back to you via the mail and what you can expect for the coming year. Let’s start by asking a few questions and looking at the data:
These three questions will help you determine the potential impact to your return mail and whether or not it will negatively affect your cashflow. Once you know this, you can start to set your new cash flow expectations. Let’s look at an example:
Let’s look at a nationwide mailer whose caging company is in Maryland. While they have donors nationwide, there are 3 hot spots where there is a large density of donors: New York, Chicago and Los Angeles. Based on the new delivery standards:
This means that a portion of your donations will come in a couple of days later than they have in past years. How big of a portion will largely depend on the factors above: where your donors are located, where your return mail goes to, and how the USPS performs with the new standards. If our caging company is in the middle of the country, donors from Florida, Maine, Southern California, and Washington may be in that outer band of deliveries.
What can you do now to be ready for this?