In Brief

No. 111

February 14, 2016

Subjects: MTAC; New, lower rates; But wait!

MTAC January Meeting

Attached is the most recent edition of Notes from MTAC, this one authored by Mike DeFlavia.  Thank you, Mike, for the thorough and attentive reporting.

A couple highlights:

• PMG anticipates implementing rate roll-back in mid-April due to cessation of “exigency” increases
• USPS sales folk anticipate a nearly $600 million influx due to political mail.  The good (-ish) news is that they say they are planning well ahead to handle the predictable surges (they also say that they will be trying to persuade major political mailers to spread out their mail – hope they have a Plan B).

New Rates

Although extremely reluctant to roll back rates, circumstances (and the law!) are forcing the Service’s hand.  To its credit, USPS is preparing an orderly transition and has made the new rates available ahead of time.  Attached are spreadsheets displaying the rates of most interest to nonprofit mailers.  Look for rates to be formally announced by USPS sometime around the end of this month.

The mandated 45-day wait period would place the effective date for the increase in mid-April.  It is expected or rather, hoped, that the Service will follow tradition and choose a Sunday, April 17 perhaps.  We’ll share the announcement when it becomes available.

Meanwhile, A Rearguard Action

Last fall, Sen. Carper (D-DE) introduced yet another version of “postal reform” legislation, this one chicly dubbed “iPost.”  It would repair the persistent fiscal challenge of advance funding of healthcare benefits and it would make the exigency increase permanent.

The Service is, not surprisingly, quite enamored of these financial boons.  One can take the measure of that by PMG Brennan’s testimony at a January 21 Senate oversight committee hearing. She advised the Senators that a broad “cross-section of the mailing industry” supports the iPost bill.

Alliance of Nonprofit Mailer’s ED Steve Kearney, mildly described the PMG’s representation as “disingenuous.”  We’ll add to that, “to say the least.”  When peeled back, the “cross-section” is composed largely of constituencies that would not be paying the permanently inflated rates (e.g., the postal unions).  Not content to count on outside factors to keep iPost from moving, ANM, DMANF, and others are making the public case that iPost does not have the support of the mailing, rate-paying community.

News of legislative and regulatory developments of interest to direct response fundraisers.  from the

Association of Direct Response Fundraising Counsel

ADRFCO

1319 F St NW  Ste 402

Washington, DC   20004-1112

202.293.9640