Nonprofit Mail Discounts Could Be Eliminated
Currently, all nonprofit and charitable organizations are being investigated and inspected by government agencies. Meanwhile, Washington is struggling with severe budget crisis and looking for ways to cut spending on all sectors. Reduced mailing rates for nonprofit foundations are now being looked at for possible elimination.
The U.S. Postmaster is battling to survive and stay in business while fewer people are writing letters and sending checks in the mail. Instead, more people are sending emails & e-cards, along with paying their bills online. All of this translate to fewer stamps being sold. As a result, congress is looking for ways to recover costs and to lower the federal deficit, and this month, a new legislation was proposed that would increase the postal rates for nonprofit foundations.
Nonprofit receive 40% discount for their postal
Right now, nonprofit organizations receive 40% discount for their postal rates on their mailings since 1951 when Congress first authorized it. The legislative restructuring proposal is to reduced by 5% a year, and later, to 10% after six years. The new legislation is an effort to renovate the U.S. Postal Service, which has over $8 billion in debt. This new legislation could save about $2 billion a year, along with repairing their financial troubles.
Supporters for nonprofit organizations stated that they are in support of steps being taken in order to restore the U.S. Postal Service, but they argue that nonprofits should be excluded from the rate increase since direct mail has been critical in reaching out to donors. If postal rates increase for nonprofits, this would paralyze and devastate most nonprofit foundations. According to statistics, 1.8 million nonprofit organizations received more than $300 billions in 2009, and 78% of the donations came directly from direct mail.