Nonprofits say a proposed postal-rate hike slated for next year, most notably a 10 percent increase for first-class stamps and a 2.5 percent increase for marketing mail and periodicals, would make a significant dent in their net fundraising results.

“The increase will have a negative impact on the whole nonprofit sector,” reads a statement from the American Lung Association, which urged the Postal Service to strengthen its support for nonprofits by keeping postage rates affordable.

The American Red Cross said that the proposed changes “could also reduce net revenue from our direct-mail program, the equivalent of providing tens of thousands of days of emergency shelter for people impacted by disasters big and small.” The Red Cross said it has budgeted a 4 percent increase for postage in the next fiscal year.

The Postal Service did not respond to requests for comment. It is reportedly accepting comments about the proposed rate increases until Monday.

If the proposal passes, the new rules would be implemented on January 27. Among the largest price shocks proposed by the Postal Regulatory Commission would be a 10 percent increase for a first-class stamp, rising from 50 to 55 cents.

The American Lung Association says direct mail provides about 20 percent of its revenue, which funds research and programs for more than 33 million Americans living with lung diseases.

Power of Direct Mail

Some nonprofits stressed that online fundraising is not yet a replacement for traditional direct-mail fundraising.

“Yes, the shift to online giving is growing every year, which will make fundraising more efficient over all for nonprofits since reaching out to a donor digitally is less expensive than through the mail. Whether online gains will make up for potential losses, though, is still unknown,” the Red Cross said in a statement. “Direct mail is still a very strong fundraising vehicle for the Red Cross, in particular for donors who prefer to mail in their donations via checks.”

Tracey Burgoon, director of direct marketing at Disabled American Veterans, said her organization did not budget for a 10 percent increase because past increases were 2 percent. “Electronic [mail] cannot even touch our direct-mail program. It accounts for about 6 percent of our income,” she said.

However, not all big-name organizations expect to be hit hard by the changes. Ken Euwema, vice president and comptroller for United Way Worldwide said “United Way actively uses digital channels to communicate. As a result, our donor engagement no longer relies on direct mail.”

Other estimated price changes from the proposal include a 2.5 percent increase for products like marketing mail, periodicals, and package services. Stephen Kearney, executive director for the Alliance of Nonprofit Mailers, said those changes may disproportionately affect nonprofits, rather than larger corporations like credit-card and insurance companies.

“We only expected it to go up 1 or 2 cents. Instead, it went up 5 cents,” he said of the increase, which would be higher than inflation.