Canada Post Introduces Relief on Postage Rate Increases

Canada Post has announced some temporary and permanent relief measures to support small businesses and charities in response to widespread concern over recently announced postage rate hikes which take effect on March 31, 2014.

The measures, which include two temporary postage discounts and two permanent changes to minimum volume thresholds, will be beneficial for smaller charities that are disproportionately affected by the rate increases.

Imagine Canada, the national charitable organization who advocates for Canadian charities and non-profits, has been in contact with senior officials at Canada Post to voice concerns about the impact of postage rate increases on the sector, and is pleased that the new measures respond in part to the issues they raised. 

Imagine Canada has provided the following overview of the relief measures announced by Canada Post: 

Temporary postage discounts

Two temporary relief postage discounts will be in effect between March 31 and December 31, 2014:

• Stamps: Organizations that hold a VentureOne card, Canada Post’s free loyalty card, will receive a five per cent discount when they purchase a minimum of 300 stamps in coils of 100 or more in a single transaction.
• Meters: Organizations using postage meters will receive a five per cent rebate on their first-class postage purchases up to a maximum of $250. Details are being finalized and will be communicated at a later date.

Permanent reductions to minimum volume requirements

• Incentive Machineable Lettermail: The minimum volume threshold to access Incentive Machineable Lettermail, a category of first-class mail reserved for bulk customers, will be reduced from 5,000 pieces to 1,000 pieces.
• Addressed Admail: The minimum volume threshold to access Machineable Addressed Admail, a category of mail reserved for promotional content, such as fundraising appeals, will be reduced from 1,000 pieces to 500 pieces.  

What this means

• The postage discounts provide temporary relief to charities as they look to mitigate any adverse impacts caused by the new postage rates as well as incorporate the new rates in their annual budgets.
• The new minimum volume thresholds improve charities’ accessibility of certain lower-cost product categories.

For more information, please contact Imagine Canada’s Public Policy team.