What Nonprofits Need to Know About the July 2025 Postal Rate Increase

The U.S. Postal Service has announced a new round of postage increases, set to take effect on July 13, 2025. While rising rates can be cause for concern, the good news is that nonprofits still receive some of the deepest postage discounts available, and direct mail can outperform other fundraising channels when done right.

Here’s what the upcoming changes mean for your organization — and how you can keep your direct mail program both effective and affordable.

USPS 2025 Nonprofit Postage Rates

Nonprofit Marketing Mail rates remain significantly discounted. By regulation, they must average no more than 60% of the equivalent commercial rates. Here are some key nonprofit rates, effective July 13, 2025:

• Automation letters — sorted by five-digit ZIP code with entry at destination sectional center facility — will be $0.162 per piece.
• Automation flats — sorted by five-digit, entry at destination sectional center facility — will be $0.465 per piece.
• Carrier Route flats — with entry at destination delivery unit — will be $0.366 per piece.
• Saturation flats — with entry at destination delivery unit — will be $0.132 per piece.

If you’re mailing to a highly targeted donor list and preparing your mail to USPS specifications, these rates can help stretch your campaign dollars further.

Why Direct Mail Still Delivers for Fundraising

Despite cost increases, direct mail remains the most reliable channel for nonprofit fundraising. In fact, the average return on investment for direct mail is over 112%, surpassing digital-only efforts like email or social media.

Here’s why direct mail works:

• Tangible impact. Physical mail is memorable and emotionally engaging.
• Trustworthy. Donors tend to trust printed appeals more than digital solicitations.
• Highly targeted. You can segment by giving history, donor demographics, geography and more.
• Multigenerational reach. It’s a misconception that only older donors give via direct mail. A multichannel approach, particularly the direct mail component, has been found to increase giving among millennial donors.

How to Make Your Mail Work Harder

To make the most of your next fundraising campaign, here are five nonprofit mail tips to help maximize donations.

1. 1. Segment and personalize. Speak directly to each donor’s relationship with your cause. Use personalized data, like past giving, program interests or even event attendance.
   2. Use compelling storytelling. Donors give to people, not programs. Highlight real stories and outcomes that show the tangible impact of their gifts.
   3. Optimize for postal savings. Mail at nonprofit rates, use barcoding, presort when possible, and drop at a destination sectional center facility or destination delivery unit to cut postage.
   4. Incorporate digital touch points. Pair your mail with Informed Delivery or QR codes linking to personalized landing pages for a multichannel boost — and take advantage of U.S. Postal Service promotional discounts while doing it.
   5. Test and track. Try different formats (letters, postcards, flats), calls to action or ask amounts. Use match backs or reply tracking to analyze what works best.

Yes, postage is going up. But direct mail is still the gold standard for donor acquisition and retention. With thoughtful targeting, powerful messaging and smart postal preparation, your campaigns can thrive; even in a rising-rate environment.

The preceding content was provided by a contributor unaffiliated with NonProfit PRO. The views expressed within may not directly reflect the thoughts or opinions of the staff of NonProfit PRO.