Charities using junk mail to raise funds often encourage donors to put a stamp on Freepost envelopes. Although this practice is not endorsed by Royal Mail, it can save charities money because the company has so far been willing to give charities a refund for any Freepost envelopes that have been stamped by the sender.

However, putting a stamp on a Freepost envelope can sometimes result in extra charges. If Royal Mail finds a Freepost envelope with insufficient postage it will apply a charge for the outstanding postage, plus an administration fee of £1.

Added extra

It is unlikely that many charities face this problem. Royal Mail's sorting machines are unable to read stamps on Freepost envelopes and charities are always charged for each and every Freepost envelope that the company handles. Many charities save money on postage by claiming a refund for any stamped Freepost envelopes it has received.

One charity that did get caught out is the African Children's Education Trust. Ironically, the charity doesn't ask people to put stamps on Freepost envelopes, but many people do so anyway. A problem is, according to the charity's chief executive, that some people assume that any stamp used on a Freepost envelope is an added extra.

No special treatment

Royal Mail has told Third Sector that charities will indeed get no special treatment when it comes to underpaid postage. A spokesperson for the company has told the publication for the not-for-profit sector that charities should ask donors to either use the correct postage or to stop putting stamps on Freepost envelopes altogether.

The latter option is probably Royal Mail's preferred solution. In March the company warned charities they are not automatically entitled to a refund when people put stamps on Freepost envelopes. It gives refunds as a gesture of goodwill only.

Links

• No reimbursement from Royal Mail over Freepost errors (thirdsector.co.uk)
• Royal Mail warns charities they can't count on refunds (thirdsector.co.uk)