Charities are being warned that their direct marketing revenues may be severely hit due to Royal Mail’s proposals to introduce a size-based pricing structure (SBP) on postage.

The revised structure is predicted to bring additional costs to charities and the Institute of Fundraising (Institute) is urging the sector to contribute to Postcomm’s current consultation on the plans.

The Institute is recommending that the Royal Mail helps protect charities by ensuring that the cost of sending an A4 letter or newsletter is not increased beyond the lowest priced item of mail, that it gives financial support to the sector to cover the cost of redesigning materials and that Postcomm ensures at least 18 months notice before any changes are introduced. Currently a start date of April 2006 is proposed.

Andrew Watt, head of policy and deputy chief executive of the Institute, said: “Even in today’s digital age, the postal service provides charities with a vital lifeline to their donors. Each year, charities spend over £100m on postage, communicating and thanking their existing supporters and aiming to engage new donors with the cause.

“There is a real danger that the increased costs will stifle charities innovation and we are calling on Postcomm and Royal Mail to recognise the significant impact of these changes upon fundraising organisations across the country.”

Postcomm’s consultation is open until 4 July 2005. For more information, visit www.institute-of-fundraising.org.uk