Amid looming postal rate increase, charities focus on longer-term impact of nonprofit discount

U.S. postage rates will increase on January 27, 2013, with nonprofit rates going up between one and four percent. But the postage increase is only the tip of the postal rate iceberg for nonprofits that face renewed Congressional attention on the idea of removing the nonprofit postage discounts altogether.

From Philanthropy.com:

Independent Sector and eight other groups asked a powerful Congressional committee Tuesday to preserve discount postage rates for nonprofits as it drafts legislation to change how the U.S. Postal Service works.

The Postal Reform Act of 2011 had proposed eliminating the nonprofit discount, which cost the postal service about $1.3-billion in 2011. The provision was removed last year during Congressional negotiations, but the comprehensive postal bill died. It is expected to be considered again this year by the new Congress.