How will the USPS exigent rate increase impact direct mail fundraising?

The USPS will increase postage rates which will likely affect direct mail fundraising efforts.
Date Published
01/29/2014

Many in the nonprofit community have expressed concern over the recent 4.3 percent increase to the U.S. Postal Service’s exigent rate, The NonProfit Times reported. Charitable organizations have traditionally relied on direct mail appeals for a large portion of their outreach efforts and fundraising appeals because it continues to be an effective resource. However, expenses are expected to rise as the Postal Regulatory Commission granted permission for the rate hike.

In an effort to address this change, the Direct Marketing Association and Alliance of Nonprofit Mailers have filed a joint appeal to hopefully overturn the decision. “The Commission’s decision, unless overturned by the court, will gut the only real protection that mailers have,” explained Peggy Hudson, senior vice president of government affairs for the DMA. The online resource Associations Now explained the expanded exigent rate will increase postal payments by about 6 percent during the next two years, but it isn’t a permanent change.

For nonprofits, as well as the general public, the cost for a first-class stamp will increase to 49 cents and the price to mail magazines and brochures will also be affected. The USPS asked for the rate increase to makeup a $2.8 billion gap in its operating budget because of expenses association with economic recession.

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