Content Requirements Nonprofit Standard Mail

1. Content RequirementsNonprofit Standard Mail Presented by Mailing Standards

2. What material is (or is not) okay to mail at nonprofit rates? What This Session Will Cover • This session focuses on contentrules for Nonprofit Standard Mail (nonprofit mail)

3. 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 • Mailingsby voter registration officials

4. Why are there so many rules for mailing at nonprofit rates? Background • Background about nonprofit mail rules

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

6. 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

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

8. Caution! 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authorization, and mailing standards for nonprofit rates • Pub 417 was last published in October 1996—it is out-of-date

9. 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

10. What are other content rules for mailing at nonprofit rates? Mailpiece Must Be Standard Mail • Must be Standard Mail for mailing at nonprofit rates—not First-Class Mail

11. Must Be Authorized Organization’s Material • An organization authorized to mail at nonprofit rates • May mailonly its own material at the nonprofit rates • May notdelegateorlenduseofitsnonprofitauthorization to any other person or organization

12. 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

13. Must Not Be Ineligible Cooperative Mailing • An ineligiblecooperative 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

14. Who devised, designed, prepared, and paid for the mailpiece? How to Determine if Mailing is Cooperative • To determine if a mailing is cooperative, ask questions listed in CSR PS-209

15. 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!

16. What’s TIF”? What’s “TIC”? Must Not Be Prohibited/Restricted Advertising • Prohibited or restricted advertising may not be mailed at nonprofit rates

17. 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.)

18. Open a Savings Account at ABC Bank Today! Advertising for Banking Services • Butadvertising for a bank’s services other than prohibited credit cards (etc.) may be mailed at nonprofit rates in material meeting content requirements for a periodical publication

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

20. Prohibited or Restricted Advertising • These advertising prohibitions and restrictions commonly are referred to as TIF – Travel, Insurance, Financial • Sometimes called TIC (for Credit) – but we’ll call it TIF

21. 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 andprimarily promoted to organization’s members, donors, supporters, beneficiaries[members] • Coverage is notgenerally commercially available

22. Restricted Advertising for Insurance • Revised standards clarify that insurance is not considered “generally commercially available”if • Coverage is provided by the nonprofit organization—i.e., thenonprofit organization is theinsurer or… New!

23. 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!

24. 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 • Travelcontributes substantially toone or more ofthenonprofitorganizationsqualifying purposes

25. Restricted Advertising for Travel Arrangements • A travel arrangement has three elements (CSR PS-298) • Transportation • Destination • Accommodations

26. Tour Old Town with TBD Transportation Services! Three two-hour tours depart City Centre at 10:00 and 12:00 and 2:00 every Thursday. Restricted Advertising for Travel Arrangements • Advertising for a day trip thatdoesn’tincludeaccommodationsmay be mailed at nonprofit rates in a periodical publication

27. Travis Argent “World’s best travel agent!” Email me if you want to go places Travel@arrangements.com Restricted Advertising for Travel Arrangements • Business-card-style advertisingforatravelagent—agent’s name, address, phone number, email address, etc.—isadvertising for a travel arrangement

28. 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 • Unrelatedadvertising is in a periodical publication

29. Holistic Hospital Health News February 2005. Vol. 1 Issue 1. Holistic Hospital Health News is published once a year by Holistic Hospital, 1 Heart Pl., Healdsburg, Advertising Unrelated Products and Services • A periodical publicationmust • Have a title • Be formed of printed sheets • Contain at least 25% non-advertising in each issue

30. Holistic Hospital Health News February 2005. Vol. 1 Issue 1. Holistic Hospital Health News is published once a year by Holistic Hospital, 1 Heart Pl., Healdsburg, Advertising Unrelated Products and Services • A periodical publication also must have • ID statement on one of first 5 pages • Title • Issuedate and issuenumber • Frequency • Name and address of authorized organization

31. Mailer’s Certification • Mailers certify that advertised products and services are substantially related by signing the postage statement

32. Mailer’s 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)

33. Mailer’s Certification • Mailing accepted at nonprofit rates based on mailer’s 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

34. 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

35. 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 • Organization’s publication that meets definition for a Periodicals publication may be mailed at nonprofit rates

36. What can voting registration officials mail at nonprofit rates? Mailings by Voting Registration Officials • 1993 legislation extended nonprofit eligibility to state and local voting registration officials (CSR PS-309)

37. 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

38. 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

39. Voting Official’s Certification • Voting officials certify that the mailing complies with the Act by signing the postage statement

40. Mailings by Voting Registration Officials • Acceptance personnel shouldnot attempt an independent analysis whether the mailing is required or authorized by the National Voter Registration Act

41. NONPROFIT APPLICATION FORMS

42. Q & A Content Requirements ~ Nonprofit Standard Mail Thanks for Attending!