The standard template for labels that we use is Avery L7159 (3 x 8) which isn't available as a set template. Currently the only solution is to export required data and then generate a mail merge from that. Even having a custom template for labels would be a helpful way to get around this issue. 

Having to save extra spread sheets is what we are trying to avoid doing as it creates a higher risk of data protection breaches. 

It would be good if Raisers Edge either had more label options (which mimic those in Microsoft packages) and/or have a custom template option.