Direct Mail Revenue Seems To Have Stabilized

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By Ann Lobban

Direct mail acquisition has faced a bumpy road over the past several years. Many nonprofits have experienced declining prospect universes, increasing costs, and shifting donor behaviors that challenge traditional fundraising strategies. The result for many organizations has been fewer new donors.

As we move deeper into 2025, there are early signs that the floor might have been reached. That’s an opportunity that fundraisers need to understand — and act on.

Following is an outline of the changes in the acquisition landscape, how they have affected fundraising and what strategies fundraisers should use in response.

Understanding The Decline: What’s Been Happening?

Tracking of the direct response prospect list universe closely during the past five years shows a decline in available universes, but it is not as pronounced overall as it appears within certain organizations.

Why the steep drop for some organizations vs. others? Several factors have played a role:

• Pandemic giving highs and natural attrition: Many organizations saw a large influx of one-time donors during 2020-21 who have now lapsed, meaning the core donor universe has adjusted accordingly. The silver lining? Active donor retention rates are starting to lift across several sectors — an early positive sign for the year ahead.
• Response rate challenges: With inflation and economic uncertainty, response rates took a hit while materials costs increased, making direct mail a more expensive investment per donor acquired.
• Budget reductions and strategic pullbacks: As inflation took hold in 2023, some organizations made the decision to reduce acquisition budgets, further compounding the decline in active donors. Investing less leads to fewer new donors and shrinking files. It’s a vicious cycle. Those who maintained or increased their investment in acquisition saw less severe declines.
• Omnichannel influence and attribution complexities: More and more donors are influenced by direct mail but prefer to fulfill their gifts online. This makes single-channel attribution misleading — an argument for embracing matchback analysis and an audience-first approach to measuring acquisition impact.

While direct mail acquisition likely won’t return to pre-2020 levels, the same rate of decline we’ve seen during the past few years is not expected. Early indicators suggest response rates are showing slight improvements.

For most organizations, there is still a viable prospect universe available. You just have to lean into best practices and ensure direct mail acquisition is fully optimized.

Key Acquisition Strategies For Nonprofits

Managers looking to strengthen their direct mail acquisition efforts should focus on these key areas:

1. Continue diversifying your list mix: Co-op models have helped bridge the gap where individual rental lists may fall short, and participating in multiple co-ops continues to be a strong strategy to mitigate risk. Organizations investing in diverse list sources are seeing better results.
2. Invest in omnichannel growth: Donors are increasingly omnichannel, meaning integrating direct mail with digital efforts (paid search, social lead generation, email, etc.) is critical for long-term success.
3. Understand and optimize the prospect universe: While some organizations are nearing their mail ceiling, others still have untapped prospect universes. Understanding where your nonprofit falls on this spectrum will help guide investment decisions.
4. Lean into audience-first fundraising and matchback analysis: As donors continue shifting how they engage and give, it’s more important than ever to take an audience-first approach, ensuring all donor touchpoints work together.

The Path Forward

The landscape of direct mail acquisition is evolving, but the path forward is clearer than it was even a year ago. While challenges remain, response rates are beginning to show signs of stabilization, and for some organizations, growth is already happening.

Those who continue to invest in donor acquisition strategically — especially with diversified list sources and omnichannel integration — will be in the best position to succeed in 2025 and beyond.

Nonprofits where fundraisers that lean into these strategies will not only weather the changes ahead but also come out stronger, with a more engaged and resilient donor base. The key, as always, is to think beyond individual transactions and focus on long-term audience engagement that turns acquisition into lasting impact.

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Anne Lobban is vice president, List Services, at RKD Group in Dallas, Texas. Her email is alobban@rkdgroup.com