Sun. May 19th, 2024

The Alliance of Nonprofit Mailers Warns of a USPS Death Spiral, Urges Immediate Actions by its Regulator

May 7, 2024

READ FULL ARTICLE AT » Alliance of Nonprofit Mailers

  • USPS behavior is actively reducing its customer base and creating massive barriers to entry for new mail

  • Regulatory action is essential now to enable longer-term reforms by Congress

Representing nonprofit organizations that rely on the United States Postal Service, the Alliance of Nonprofit Mailers (“the Alliance”) urges immediate actions to stem the death spiral underway at the Postal Service. The USPS is provoking its downward spiral by raising prices on monopoly mail much higher than inflation, twice yearly, with no end in sight.

Alliance President James Asselmeyer, said, “We are deeply concerned that the organizations and businesses that fund USPS with millions in postage purchases are being forced out of the mail by very unreasonable and inexplicable rate hikes. No business or nonprofit could succeed with such a misguided strategy.”

Alliance Executive Treasurer Tracey Burgoon, Chief Development Officer at Disabled American Veterans, added, “Many nonprofit organizations provide vitally important services that the federal government does not, and if rates continue to rise, they will be being forced to cut back as a direct result of USPS rate increases.”

“Since it started the destructive pricing strategy, USPS has seen very little revenue growth and it is losing over $6 billion per year despite Congressional assistance of over $100 billion in 2022. Recent mail volume losses have been the largest ever except during the Great Recession and the COVID-19 pandemic. This self-destructive approach makes no sense and must be stopped,” said Alliance Executive Secretary Sandra Miao, Associate Vice President, Membership at the National Wildlife Federation.

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