We have many years experience supporting a wide number of charities and have an in-depth understanding of the sector and types of communications which are sent out on a daily basis to help support all the initiatives and causes happening.
Charities play an essential role in delivering support and services to those who are most in need. As the sector fights to optimise funds and retain donors, how can charities ensure that their brand can make an impact and invoke action?
Many charities are unable to claim back their VAT on direct mail expenditure which adds a 20% levy on every pound spent.
While direct mail is still the most effective and trusted way for charities to fundraise, postage is a large proportion of each campaign budget.
BKT are always looking at ways to enable our charity client's budget to stretch further. With large posting volumes we are able to negotiate competitive rates with our postal providers - these savings are passed onto our charity clients.
Without an Agency Agreement we can show substantial savings on your postal budgets compared with Royal Mail Retail Business rates.
We can also help to set up an Agency Agreement with your charity to reduce the VAT payable on the postage element of your next campaign.
An Agency Agreement is a contract between your charity, BKT as your service provider, our postal partner and Royal Mail.
This allows us to make a differentiation between the Royal Mail's "wholesale element" of the postage cost, and the much smaller "logistics element" incurred by BKT and our postal partners.
We pass the wholesale element to your charity as a disbursement, which does not attract VAT.
The logistics element continues to attract VAT as usual, but is a very small proportion of the overall total.
We think so. There are few other areas on a campaign budget that can offer such substantial savings at no detriment to the product or service selected. You are still getting the same postage service, just at a much better price.
For example: (Based on rates 2019)
Royal Mail 2nd Class - Advertising Mail:
Letter under 100g, 10,000 Copies
£2,208.06 + £441.61 VAT = £2,649.67
BKT Charity Agreement Postage Rate:
Wholesale Element - £1736.90 + £00.00 VAT
Logistics Element - £437.18 + £87.43 VAT
Total Including VAT - £2,261.51
Cost Saving for Charity = £388.16
This represents a massive 15% saving over Royal Mail Business Rates
Our team are available to walk you through the set up stages and ensure that every pound of your postage budget is being utilised effectively.
To access these advantageous postage rates contact our client services team for further information.