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August 19, 2011

Postal Service Revamp Could Slash Charity Rate Break

A congressional proposal to restructure the money-losing Postal Service would phase out the 40-percent discount nonprofit organizations get for their mailings, Fox News reports.

Rep. Darrell Issa's bill would reduce the discount by 5 percent a year for six years.

Ali Ahmad, a spokesman for the California Republican, said the move would save $1.7-billion a year for the Postal Service, which faces a second straight year of $8-billion or more in losses.

Jason Lee, a lawyer for the Association of Fundraising Professionals, said the plan would “cripple” many charities that depend on direct mail for the bulk of their solicitations.

The Alliance of Nonprofit Mailers is also protesting the proposal, rallying members to send letters to Mr. Issa arguing that it “is unfair to punish nonprofits for the Postal Service’s inability to control its own costs.”