I have to send out "thanks but we can't offer you a contract" letters to ALL the dance auditionees every year. And our art. directors have to sign them ALL. by hand. no inserting of their scanned signatures. this season I sent out about 200 letters.
I feel that if someone is not getting a job but took the time to put together a nice audition package, or in the case of dancers, perhaps purchased a plane ticket to come audition for our company, the least we can do is send them an actual signed letter telling them we can't offer them a contract but they are welcome to audition for the following season.
It's not that bad -- was about a day's work for me total (spread out over a few days). I enter all the auditionees addresses into an excel doc, with each field separate (Column A: title B: first name C: last name etc.). Then I go to word and type the form letter in, and set up a mail merge. I also set up a mail merge for labels. Hit print, and go do something else while they print.
Put them in the AD's boxes to sign.
When I get them back, I take them all home, and sit in front of the TV to fold, seal, stamp, and label.
Now, with the dancers it's a little bit different -- they're looking for a season contract and we tell them when they audition that we will be making decisions by X date, so they know they won't hear anything from us, yes or no, until after that date.
Good luck. Waiting is always the hardest part.