Post Office Restructuring Could Cost Non Profits Their Mailing Privileges

08.19.11 | Sarah Harnisch

  We've been following all the restructuring at the United States Postal office fervently-- but did you know non-profits-- like your church-- could loose their mail discounts because of the USPS's cost cutting measures? New legislation would gradually lower the discount on postage rates nonprofits have been receiving since 1951. The nonprofit advertising discount would be reduced by five percent a year, and 10-percent after six years, according to the "Postal Reform Act of 2011." Currently, eligible nonprofits in America receive a 40-percent discount on postage rates, which has been criticized since most foundations use direct mail fundraising to garner support. Some say the new rates would cripple nonprofits-- and ultimately punish the USPS, with less mail. But Congress argues it would save them 1-point-7-billion dollars.  The USPS is expected to lose more than $8-billion this year, and another $8-billion in the coming year if no changes are made soon.