Figure 2 shows the  three semipostals. Proceeds from the Stop Family  Violence stamp are being transferred to HHS for domestic violence  programs. In addition to variations in the amounts raised  by each of the semipostals, sales patterns were also different, and on the  basis of our discussions with Service officials, advocacy groups, and other  stakeholders, we identified four key factors that affected sales, including  (1) fund-raising cause, (2) support of advocacy groups, (3) stamp design,  and (4) Service promotional activities. Semipostal Proceeds and Sales Patterns Varied Substantially

The funds raised by the semipostals vary from $44 million for the Breast  Cancer Research stamp to over $10.5 million for the Heroes of 2001 stamp  and nearly $2 million for the Stop Family Violence stamp, totaling over $56  million. 4). Sales Patterns Were Influenced by Several Key Factors

			Fund-Raising Cause: Awareness, Appeal, and Staying Power

Public awareness about the fund-raising causes represented by the  semipostals likely affected sales levels. 5). Semipostal Proceeds Will Be Used for Grants, with Limited Reporting on Specific Uses

The federal agencies receiving semipostal proceeds currently award or  plan to award these funds using grants, and although each agency has  collected and maintained information on semipostal proceeds, none has  reported specifically on their use of proceeds thus far. The laws authorizing these three  specific semipostals do not include reporting requirements such as those of  the Semipostal Authorization Act. Breast Cancer Research Stamp and Stop Family Violence Stamp Proceeds Are Used for Grants within Established Programs

			NIH and DOD: Grants for Breast Cancer Research Under Way

Both NIH and DOD reported that they began receiving Breast Cancer  Research stamp proceeds from the Service in November 1998, and breast  cancer research grants have been awarded using established programs at  both agencies since June 2000 and June 1999, respectively. Agencies Have Not Reported Specifically on the Proceeds’ Use

None of the designated federal agencies receiving semipostal proceeds is  required to issue a report to Congress detailing how these funds are used or  any accomplishments resulting from semipostal-funded grants. Lesson Learned: The Charitable Cause Selected Can Greatly Affect the Arc of the Fund-Raising Effort and Other Results Achieved

The existing semipostals have been issued for a minimum 2-year sales  period, and one—the Breast Cancer Research stamp—has been extended 3  times. Lesson Learned: Early and Continued Involvement of Advocacy Groups Helps to Sustain Semipostal Support

Support of advocacy groups is an important marketing device for  semipostals. The extent of promotion and advertising of a semipostal can also greatly  affect sales. For example, FEMA’s plan for distributing the  Heroes of 2001 stamp proceeds has taken about 3 years to finalize, and  while it is clear that the initial intent of the semipostal was to “provide  financial assistance to the families of emergency relief personnel killed or  permanently disabled in the terrorist attacks of September 11,” other  organizations working with these families suggested that currently, the  most prevalent needs of this group are programs and services directed at  addressing the long-term effects of the terrorist attacks. These agencies included the National Cancer  Institute (NCI) within the National Institutes of Health (NIH), the Army  Medical Research and Materiel Command within the Department of  Defense (DOD), the Federal Emergency Management Agency within the  Department of Homeland Security, and the Administration for Children and  Families within the Department of Health and Human Services. Semipostal Design

Congress has selected the subject matter for the three semipostals issued  to date. Comments from the U.S.
Why GAO Did This Study

Congress has directed the U.S. Postal Service to issue three fund-raising stamps, also called semipostals, since 1998. These stamps are sold at a higher price than First-Class stamps, with the difference going to federal agencies for specific causes. The proceeds from the three stamps address breast cancer research, assistance to families of emergency personnel killed or permanently disabled in the terrorist attacks of September 11, and domestic violence. The law authorizing the Breast Cancer Research stamp directed GAO to report on the fund-raising results. To provide additional information to the Congress, GAO expanded the study to include all three semipostals. GAO's study addressed (1) the amounts raised and the factors affecting sales, (2) how the designated agencies used the proceeds and reported the results, and (3) lessons learned for the Postal Service, agencies receiving the proceeds, and others.

What GAO Found

Over $56 million has been raised through semipostal sales as of June 2005, and sales were likely affected by several key factors. Individually, proceeds totaled $44 million for the Breast Cancer Research stamp, over $10.5 million for the Heroes of 2001 stamp, and nearly $2 million for the Stop Family Violence stamp. Sales patterns and levels differed greatly, with four key factors affecting sales patterns: (1) fund-raising cause, (2) support of advocacy groups, (3) stamp design, and (4) promotion by the Postal Service. The designated federal agencies currently award or plan to award grants with the proceeds; none of the agencies has reported specifically on results. Breast Cancer Research stamp proceeds have been used to award research grants by the National Institutes of Health and the Department of Defense. No grants have yet been awarded with the proceeds from the two other semipostals. The Federal Emergency Management Agency plans to distribute Heroes of 2001 stamp proceeds through grants to families of emergency personnel killed or permanently disabled from the September 11 attacks, while the Department of Health and Human Services plans to use Stop Family Violence stamp proceeds for grants to organizations for projects aimed at enhancing services to children exposed to domestic violence. Key lessons that have emerged from the three semipostals: (1) the nature of the charitable cause can greatly affect sales patterns and other results. A disaster, for example, is more likely to have a brief but intense response, while an ongoing health issue will have a longer one; (2) early and continued involvement of advocacy groups helps sustain semipostal support; (3) stamp design, promotion, and clear understanding about how proceeds will be used can greatly affect consumers' response; (4) semipostals generate proceeds immediately, but the logistics of using the moneys raised takes much longer, and (5) reporting can enhance accountability. Congress included a reporting requirement in the Semipostal Authorization Act of 2000, but these three semipostals are not subject to that requirement.