Subsidized Postage

GGD-85-42: Published: May 22, 1985. Publicly Released: May 22, 1985.

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GAO found that: (1) profitmaking companies benefited from subsidized postage rates; (2) publishers of national magazines benefited from the "in-county" subsidy provided to promote the dissemination of local news and information; (3) the amount of subsidy that a nonprofit organization can receive depends on the volume of mail the organization chooses to send; and (4) any material produced for or mailed on behalf of an organization not itself authorized to mail at the preferred rates is prohibited from mailing at such rates. Although the use of nonprofit mailing authorizations to sell commercial products is not prohibited, mailing at a reduced rate provides a significant competitive advantage to the users of the authorization.

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