BRM vs. CRM in Direct Mail Fundraising

Which One Drives Better Results?

In direct mail fundraising, reply envelopes are more than just logistics—they can significantly influence donor behavior, response rates, and your overall campaign ROI. Two common reply formats are Business Reply Mail (BRM) and Courtesy Reply Mail (CRM)—each with distinct cost structures and strategic applications.

Business Reply Mail (BRM) provides a pre-addressed envelope with postage paid by the mailer upon return. It’s ideal when the goal is to maximize response rates, particularly in acquisition or low-barrier campaigns. However, BRM requires a USPS permit and incurs costs per returned mail piece, regardless of gift size.

Courtesy Reply Mail (CRM), on the other hand, includes a pre-addressed envelope but requires the donor to affix a stamp. While this approach lowers per-piece costs and doesn’t require a USPS permit, it introduces minor friction—donors must find and use a stamp—which can deter lower-commitment responses.

Results in Action

To explore this trade-off, one of IDM’s nonprofit clients ran three tests across acquisition and appeal campaigns:

• In a 2024 acquisition test, CRM outperformed BRM with a higher response rate (0.41% vs. 0.35%) and slightly better net revenue.
• Conversely, in a 2025 appeal, BRM achieved a significantly higher response rate (0.78% vs. 0.54%) and greater net income—suggesting that removing postage barriers boosted committed donor participation.
• A 2025 large-volume acquisition test saw the CRM test again delivered a slightly better net position despite a marginally lower response rate.

These findings suggest that audience type and campaign purpose matter. BRM may lift response among new or low-commitment donors by eliminating friction. CRM, while more cost-efficient, might better suit appeal audiences or high-intent donors who are motivated regardless of postage.

Ultimately, nonprofits should test both formats across programs before drawing conclusions. The right choice balances cost efficiency, response optimization, and donor experience—a formula best fine-tuned through data and real-world performance.

Ready to elevate your direct mail strategy?

Whether you’re optimizing for cost-efficiency or maximizing donor response, IDM brings the testing rigor, strategic insight, and creative execution to help you get results. Let’s find the right reply format—and the right message—for your mission. Partner with us today and begin turning every envelope into an opportunity!