The United States Postal Service (USPS) has faced growing financial pressure and increased scrutiny in recent years—and several recent changes are raising questions for nonprofit leaders and donors alike.
In late 2025, USPS updated how it applies postmarks, shifting them from the date mail is dropped off to the date it is processed at a regional facility. Then, in early 2026, the Postal Regulatory Commission (PRC) approved a new rate-setting framework, prompting concern about future postage increases.
Not surprisingly, these developments have fueled speculation across the nonprofit sector. Let’s separate fact from fiction and focus on what actually matters for nonprofits.
What exactly changed with postmarking?
USPS has changed the definition of a “postmark.”
Historically, a postmark reflected the date a piece of mail was accepted by USPS—whether collected by a carrier, dropped at a retail location or inducted at a BMEU. That date was often treated as the official mailing date.
Now, the postmark reflects when the mail is first processed on USPS equipment, not when it is dropped off.
As a result, there may be a one- to two-day (or longer) gap between when mail is deposited and when it is postmarked.
Why did USPS change the meaning of postmark?
There are three primary drivers behind the new postmark definition:
1. Network changes means fewer processing facilities, longer transportation routes and mail often sits before the first processing scan
USPS needed postmarks to reflect actual operational handling, not customer deposit timing.
2. Deposit-based postmarks had become increasingly inconsistent. Processing-based postmarks are:
- System-generated
- Auditable
- Defensible for compliance and reporting
3. Postmarks are now directly tied to automated processing scans, reducing manual intervention and local discretion.
What types of mail are most affected?
In theory, the change applies to all mail—but the impact varies.
The most affected types of mail are:
- First-Class Mail
- Legal / deadline-driven mail
- Ballots
- Government notices
- Donations with cutoff dates
Mail less affected by the change are marketing mail, which are rarely deadline-driven, and pieces of mail where the “received by” date matters more than the postmark date.
Why does this matter for deadline-driven mail?
Because postmarks may now lag behind drop-off dates, the following scenarios could be negatively impacted:
- Donor gift deadlines tied to a postmark date
- Tax filings
- Medicare enrollment
- Benefits eligibility
- Mail-in ballots for elections
While USPS says they prioritize these types of mail, they have not guaranteed same-day processing.
What does USPS recommend?
Generally, USPS advises everyone to mail early, not rely on last-day-of-deadline mailings and to use tracked or time-definite products when critical.
What’s the real impact on nonprofits?
This change creates several tangible challenges for nonprofits:
- A donor may mail a gift on time, but the postmark may show it as late
- Donor trust may erode if supporters aren’t aware of the change
- Increased call center inquiries and donor service issues
- More exceptions, adjustments, and goodwill decisions
- Potential legal or compliance disputes
Our advice to nonprofits navigating the postmark change?
Transparency is key. Let donors know that USPS changes are outside your control—and clearly communicate what is within theirs.
- Encourage donors to mail gifts several days earlier than the stated deadline
- Move mail-in deadlines earlier and over-communicate them
- For marketing mail, adjust campaign planning to mail earlier than in the past
Did USPS eliminate PRC oversight or the CPI cap?
No. And this is an important point to clarify.
USPS has not eliminated PRC oversight, and the CPI cap has not simply disappeared.
What has changed:
- The PRC approved a new rate-setting framework
- CPI remains the foundation
- USPS may now apply additional, defined authorities (e.g., density, retirement costs, delivery points)
What has not changed:
- USPS cannot raise rates arbitrarily
- USPS does not have unchecked pricing power
- PRC oversight remains in place
- Stakeholders can still challenge rates even after implementation
What does the new CPI framework mean for nonprofits?
More variability in rate increases
CPI was once the primary limiter. Now, additional authorities may allow larger increases in certain years, particularly when USPS cites structural cost pressures.
Greater pressure on certain mail types
Flats, marketing mail, and products tied to declining volumes or higher handling costs are most vulnerable—complicating nonprofit budgeting and campaign planning.
Preferential pricing still applies—but isn’t immunity
While nonprofit mail retains discounted rates, it is not shielded from structural increases. In some cases, the gap between nonprofit and commercial rates may narrow.
How can you work with your nonprofit marketing agency on rate changes?
If you partner with a nonprofit marketing agency, a long-term strategy is essential to avoid surprises. Here’s how we approach it at RKD Group:
- Proactive forecasting: We model expected postal increases well in advance using USPS filings, PRC guidance, and industry data to avoid surprises and support accurate budgeting.
- Scenario planning: We build multiple postage scenarios (conservative, expected, and high-impact) so campaigns are resilient to rate movement.
- Ongoing optimization: We continuously evaluate formats, mail classes, quantities, and in-home timing to mitigate postage pressure while protecting response and ROI.
- Transparent communication: As USPS proposals or regulatory developments emerge, we share updates and implications promptly so decisions can be made with the best available information.
- Advocacy awareness: We actively monitor industry advocacy efforts, including nonprofit coalition feedback to the PRC, and factor those developments into our long-term planning assumptions.
The bottom line
There’s no need to panic about runaway postage rates. Yes, upward pressure will continue, and disciplined planning is more important than ever.
But USPS remains under significant political and regulatory scrutiny, and it is not in its interest to price mail out of the market. Maintaining mail volume still matters.
With thoughtful planning, clear communication and the right partners, nonprofits can navigate these changes without losing momentum.
.png?width=2000&height=2000&name=image%20(30).png "2025 Q1 Field Guide")
Leave a comment: