May 13, 2021 – Representing the interests of nonprofit organizations that rely on USPS mail for over 40 years, we thank the House Committee on Oversight and Reform for moving forward legislation to greatly reduce the agency’s costs for retiree health benefits. This is an important step forward, and a key component of the USPS ten-year plan.
Unfortunately, the USPS strategic plan also includes massive above-inflation rate increases that will force much nonprofit and other mail out of the system, at a time when the agency needs as much volume as it can get. The rate increases will be concurrent with slowing down First-Class Mail that is so important to nonprofits.
We remain very concerned that these planned rate increases, starting with 6 percent to 8 percent expected this year, will have a major negative impact on the nonprofit sector that is so important for our nation, especially at times of crisis such as the current pandemic.
Nonprofits rely on mail for their very existence, raising a substantial portion of their funding. Mail is critically important for fundraising, publications subscriptions, memberships, and general communication of critical information. A large part of our population remains reliant on hard-copy communications and transactions, including seniors and rural residents.
Nonprofits cannot increase their spending on non-program expenses such as postage at the rate that USPS is planning to increase rates. They will have no choice but to greatly reduce their use of mail, damaging the missions of our nation’s charities while endangering the future of our public postal service.
We urge Congress to ensure the future of postal mail by keeping postage rates in line with general inflation.
ANM Board of Directors
American Heart Association
American Lung Association
Disabled American Veterans
National Wildlife Federation
New England Journal of Medicine
Our Sunday Visitor
St. Jude Children’s Research Hospital
Wounded Warrior Project