Groups: Measure to Eliminate Nonprofit Mail Discounts Could Cripple Fundraising

With the United States Postal Service looking to downsize, some of America's favorite nonprofits that rely heavily on direct mail fundraising could become a new kind of charity case.

That’s because legislation to restructure the money-losing agency includes a provision that would eliminate reduced postage rates for nonprofit mail.

Under Rep. Darrell Issa’s bill, the 40 percent discount that nonprofits have been getting for the postage rates on their mailings since Congress authorized it in 1951 would be reduced by 5 percent a year, and to 10 percent after six years.