Postage Rates are Changing – Here’s What to Do

Mid-Year Postal Rate Changes rolling out July 10th

On July 10, the USPS will be changing Market Dominant Postage Rates which impact the entire Nonprofit Direct Mail Industry.

This increase was expected after the Postal Service announced a rate change calendar where they will be using their rate adjustment authority to modify rates twice a year. The biannual changes will be in January and July, starting with the July 2022 rate change around the corner.

Under the new postal rate-making rules, the industry can expect the Postal Service to modify postage rates every six months if they chose to take advantage of their surcharge allowances, and if the CPI (Consumer Price Increase) continues to increase.

With the July rate change, Nonprofits will likely realize:

• Nonprofit Marketing Mail Letter increases between 4% – 6.5%
• First Class Presorted Letter increases on average by 6.9% or $.030 per piece
• First Class Presort Flat Rates increase on average by 9.2% or $.128 per piece
• Nonprofit Flats 4 oz or less increase on average by 12.2% or $.044 per piece
• Nonprofit Flats Greater than 4 oz are charged based on a Piece AND a Pound Rate and the changes look like this:
  • Average increase of 30.9% or $0.041 per piece at the piece level AND an Average increase of 1.77% and $0.014 at the per pound rate
  • A Single Piece Forever Stamp increase from 58¢ to 60¢ which is 3.4% or $0.02 per piece

Access our PS Postage Rate Chart as a handy reference for the new rates.

Decrease Increases with Mailing Promotions

To help offset these significant increases, mailers can participate in the ongoing USPS Mailing Promotions which could save you up to 4% in postage.

We encourage you to think of these Mailing Promotions not as “optional” but as a holistic element of postage rates which gives you the opportunity to decrease the impact of these rising costs on your fundraising budgets.

If you have any questions, don’t hesitate to reach out to your PS contact.