Nonprofit postage rates
at risk in USPS overhaul

A U.S. House committee is scheduled to consider legislation by early October that would overhaul the U.S. Postal Service. Among the moves under consideration is phasing out the 40 percent discount rate for mass mailings by nonprofit organizations. Similar reform legislation in the Senate does not include the proposed phase-out of the nonprofit postal rate.

The USPS is proposing to close nearly 4,000 post offices and lay off more than 100,000 employees to close a $10 billion deficit in its finances.

The post office’s continuing financial crisis has resulted in Republican Congressman Darrell Issa’s introducing H.R. 2309, the Postal Reform Act.  This bill contains a provision that would eliminate reduced rates for nonprofit mail, while forcing the USPS to harness out-of-control costs.

Eliminating the current nonprofit discount would effectively increase rates by 35 percent. Nonprofits that use direct mail to raise funds say such an increase would have devastating effects at a time when many organizations are reporting that donations are down.