Content Requirements Nonprofit Standard Mail

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Content RequirementsNonprofit Standard Mail

• Presented by
• Mailing Standards

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What This Session Will Cover

• This session focuses on content rules for
  Nonprofit Standard Mail (nonprofit mail)

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What This Session Will Cover

• We will discuss
• Cooperative mail including recent changes
  related to fundraisers
• Travel, insurance, and credit card
  prohibitions/restrictions including changes
  related to advertisements for insurance
• Substantially related advertising standards
• Mailings by voter registration officials

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Background

• Background about nonprofit mail rules

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Background

• Nonprofit rules based on Federal laws (statutes)
• Former Title 39
• Current Title 39
• Statutes set forth in Domestic Mail
  Classification Schedule (DMCS)

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USPS Standards

• Domestic Mail Manual (DMM) provides USPS
  standards for all classes of mail, including
  nonprofit mail
• Customer Support Rulings (CSRs) clarify rules and
  provide examples
• View CSRs online via Postal Explorer at
  http//pe.usps.com

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USPS Standards

• Publication 417, Nonprofit Standard Mail
  Eligibility (Pub 417), discusses eligibility,
  authorization, and standards for mailing at
  nonprofit rates

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USPS Standards

• Publication 417, Nonprofit Standard Mail
  Eligibility (Pub 417), discusses eligibility,
  authorization, and mailing standards for
  nonprofit rates
• Pub 417 was last published in October 1996it is
  out-of-date

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USPS Standards

• For now, Pub 417 should not be used as reference
  for cooperative mailings or content-based
  restrictions
• See DMM for current standards
• Best way to view most current DMM standards is
  online

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Mailpiece Must Be Standard Mail

• Must be Standard Mail for mailing at nonprofit
  ratesnot First-Class Mail

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Must Be Authorized Organizations Material

• An organization authorized to mail at nonprofit
  rates
• May mail only its own material at the nonprofit
  rates
• May not delegate or lend use of its nonprofit
  authorization to any other person or organization

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Must Not Be Ineligible Cooperative Mailing

• A cooperative mailing is a mailing by an
  authorized organization that cooperates with one
  or more organizations to share the costs, risks,
  or benefits of the mailing
• Two (or more) organizations may enter a
  cooperative mailing at nonprofit rates if each of
  the parties is authorized to mail at nonprofit
  rates at the entry office

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Must Not Be Ineligible Cooperative Mailing

• An ineligible cooperative mailing occurs when not
  all of the cooperating parties are authorized to
  mail at nonprofit rates at the entry office
• Postage for ineligible cooperative mailings must
  be paid at Regular Standard Mail rates

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How to Determine if Mailing is Cooperative

• To determine if a mailing is cooperative, ask
  questions listed in CSR PS-209

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New Exception to Cooperative Mailing Rule

• November 2003 standard exempts certain
  fundraising mailings from cooperative mail rule
• Limited to solicitations for monetary donations
• Not for fundraising events
• Nonprofit organization must be provided list of
  donors and contact information (or waive right to
  receive list)

New!
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Must Not Be Prohibited/Restricted Advertising

• Prohibited or restricted advertising may not be
  mailed at nonprofit rates

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Prohibited or Restricted Advertising

• 1990 statute prohibits mailing material at
  nonprofit rates if it contains advertising for
  any credit, debit, or charge card or similar
  financial instrument or account, provided by or
  through an arrangement with any person or
  organization not authorized nonprofit rates
• There are no exceptions to prohibitions for
  credit cards (etc.)

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Advertising for Banking Services

• But advertising for a banks services other than
  prohibited credit cards (etc.) may be mailed at
  nonprofit rates in material meeting content
  requirements for a periodical publication

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Prohibited or Restricted Advertising

• The 1990 statute also restricts mailing material
  at nonprofit rates if it contains advertising for
  commercial insurance or travel arrangements

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Prohibited or Restricted Advertising

• These advertising prohibitions and restrictions
  commonly are referred to as TIF Travel,
  Insurance, Financial
• Sometimes called TIC (for Credit) but well
  call it TIF

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Restricted Advertising for Insurance

• Advertising for insurance may be mailed at
  nonprofit rates if
• Organization promoting insurance is authorized
  nonprofit rates at entry office
• Policy is designed for and primarily promoted to
  organizations members, donors, supporters,
  beneficiaries members
• Coverage is not generally commercially available

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Restricted Advertising for Insurance

• Revised standards clarify that insurance is not
  considered generally commercially available if
• Coverage is provided by the nonprofit
  organizationi.e., the nonprofit organization is
  the insurer or

New!
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Restricted Advertising for Insurance

• Not generally commercially available if
• Nonprofit organization provides or promotes
  coverage to its members etc. in such a way that
  members may make tax-deductible donations to the
  nonprofit organization of their proportional
  shares of any income in excess of costs the
  nonprofit organization receives from purchase of
  the coverage by its members

New!
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Restricted Advertising for Travel Arrangements

• Advertising for a travel arrangement may be
  mailed at nonprofit rates if
• Organization promoting the arrangement is
  authorized nonprofit rates at entry office and
• Travel contributes substantially to one or more
  of the nonprofit organizations qualifying purposes

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Restricted Advertising for Travel Arrangements

• A travel arrangement has three elements (CSR
  PS-298)
• Transportation
• Destination
• Accommodations

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Restricted Advertising for Travel Arrangements

• Advertising for a day trip that doesnt include
  accommodations may be mailed at nonprofit rates
  in a periodical publication

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Restricted Advertising for Travel Arrangements

• Business-card-style advertising for a travel
  agentagents name, address, phone number, email
  address, etc.is advertising for a travel
  arrangement

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Substantially Related Products and Services

• Advertising for other products or services (not
  TIF) may be mailed at nonprofit rates if
• Sale of the product / providing of the service is
  substantially related to the exercise or
  performance of a purpose the organization used to
  qualify for the nonprofit rates or
• Unrelated advertising is in a periodical
  publication

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Advertising Unrelated Products and Services

• A periodical publication must
• Have a title
• Be formed of printed sheets
• Contain at least 25 non-advertising in each issue

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Advertising Unrelated Products and Services

• A periodical publication also must have
• ID statement on one of first 5 pages
• Title
• Issue date and issue number
• Frequency
• Name and address of authorized organization

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Mailers Certification

• Mailers certify that advertised products and
  services are substantially related by signing the
  postage statement

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Mailers Certification

• Certification also specifies (in part) that
  income derived from the sale of products or
  services advertised in the mailing is not subject
  to Unrelated Business Income Tax (UBIT)

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Mailers Certification

• Mailing accepted at nonprofit rates based on
  mailers certification, unless material is
  ineligible for other reasons
• Must be Standard Mail (not First-Class Mail)
• Must not be ineligible cooperative mailing
• Must not contain TIF

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Products Mailable at Nonprofit Rates

• Low-cost products are mailable at nonprofit rates
• Maximum value of a low-cost item is established
  each year by IRS
• 2005 maximum low-cost value is 8.30

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Products Mailable at Nonprofit Rates

• Value is actual cost to authorized nonprofit
  organization
• Donated or contributed items do not have to meet
  definition of a low-cost item
• Organizations publication that meets definition
  for a Periodicals publication may be mailed at
  nonprofit rates

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Mailings by Voting Registration Officials

• 1993 legislation extended nonprofit eligibility
  to state and local voting registration officials
• (CSR PS-309)

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Mailings by Voting Registration Officials

• CSR PS-310 clarifies what materials voting
  registration officials may mail at nonprofit
  rates
• Mailings subject to all standards applicable to
  mail entered at nonprofit rates by other
  authorized mailers
• Must be Standard Mail
• Must not be ineligible cooperative mailing
• Must not contain TIF

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Mailings by Voting Registration Officials

• CSR PS-310 also clarifies that voting
  registration officials must certify that the
  mailing is required or authorized by the National
  Voter Registration Act of 1993

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Voting Officials Certification

• Voting officials certify that the mailing
  complies with the Act by signing the postage
  statement

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Mailings by Voting Registration Officials

• Acceptance personnel should not attempt an
  independent analysis whether the mailing is
  required or authorized by the National Voter
  Registration Act

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NONPROFIT APPLICATION FORMS
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Q A

• Content Requirements Nonprofit Standard Mail
• Thanks for Attending!