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Postal hike – Effective July 1

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A postal rate boost that takes effect July 1 could prompt small nonprofits to reduce their services, IndustryClick reported May 8.

“Smaller community-based nonprofits who aren’t in the loop about these increases will probably have to cut back on their services to feed the $69 billion beast that is the U.S. Postal Service,” said Neal Denton, executive director of the Alliance of Nonprofit Mailers.

Denton estimated nonprofit rates could rise by 2.5 percent to 3 percent.

The U.S. Postal Service Board announced May 7 that it would raise rates by an average 1.6 percent, the second increase in six months.

Overall, standard mail rates have grown 10 percent since December, while parcel post rates have risen 4.4 percent since January.

The Direct Marketing Association, which opposes the new increase, estimates it will cost the U.S. economy roughly $1 billion a year.

For full story, go to IndustryClick.

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