November 10, 2005 | Read Time: 2 minutes
The Postal Rate Commission has recommended new postage rates for charities, to take effect in January, that would result in double-digit percentage increases in postage for some nonprofit mailings.
Under the commission’s plan, charities that mail fund-raising appeals, newsletters, and other materials at “nonprofit standard” rates would see their postage rates rise by 3 percent next year. But charities that sort their mail in the order in which it is delivered, to earn discounts under “nonprofit enhanced carrier route” rates, would face increases of up to 12.3 percent.
The commission’s recommended increases vary from the 5.4-percent overall increase requested by the U.S. Postal Service last spring.
While some nonprofit mail experts said they were dismayed by the potential double-digit percentage increase for carrier-route-sorted mail, others said they were not so troubled by the commission’s recommendations, largely because its proposed rates would save charities an estimated $16.1-million next year compared to what they would pay under the Postal Service plan.
And, they noted, enhanced-carrier-route mail makes up only a small portion of all nonprofit mail: Last year charities mailed 2.7 billion pieces of such mail, compared with 11.8 billion pieces of nonprofit standard mail, according to the Postal Service.
The Postal Service’s Board of Governors, which must approve the new rates, said it will consider the commission’s recommendations this week.
Several nonprofit mail experts said that, while they are not happy about rates increasing in January, they are far more worried about what will happen in 2007, when the Postal Service is expected to seek another increase. Experts predict that the Postal Service will reconsider how it sets rates to ensure that postage for different classes of mail covers the cost of processing and delivery.
Standard mail, which has now outstripped first-class mail in volume, for example, could see a big postage increase in 2007 to cover its costs, said Neal Denton, executive director of the Alliance of Nonprofit Mailers.
The next deliberations over postal rates could be especially difficult, he said. “There’s more chance for volatility, and it will create a lot of battles. I’m not looking forward to it.”
