1. March 2005 Content Requirements Nonprofit Standard Mail Presented by Mailing Standards

2. March 2005 What material is (or is not) okay to mail at nonprofit rates? content rules (nonprofit mail) This session focuses on content rules for Nonprofit Standard Mail (nonprofit mail) What This Session Will Cover

3. March 2005 We will discuss – Cooperative mail – Cooperative mail – including recent changes related to fundraisers – Travel, insurance, and credit card prohibitions/restrictions – Travel, insurance, and credit card prohibitions/restrictions – including changes related to advertisements for insurance – Substantially related – Substantially related advertising standards voter registration officials – Mailings by voter registration officials What This Session Will Cover

4. March 2005 Background about nonprofit mail rules Why are there so many rules for mailing at nonprofit rates? Background

5. March 2005 Nonprofit rules based on Federal laws (statutes) –Former Title 39 –Current Title 39 Domestic Mail Classification Schedule Statutes set forth in Domestic Mail Classification Schedule (DMCS) Background

6. March 2005 Domestic Mail Manual Domestic Mail Manual (DMM®) provides USPS standards for all classes of mail, including nonprofit mail Customer Support Rulings Customer Support Rulings (CSRs) clarify rules and provide examples http://pe.usps.com –View CSRs online via Postal Explorer at http://pe.usps.com USPS® Standards

7. March 2005 Publication 417, Nonprofit Standard Mail Eligibility Publication 417, Nonprofit Standard Mail Eligibility (Pub 417), discusses eligibility, authorization, and standards for mailing at nonprofit rates USPS® Standards

8. March 2005 Publication 417, Nonprofit Standard Mail Eligibility (Pub 417), discusses eligibility, authorization, and mailing standards for nonprofit rates out-of-date –Pub 417 was last published in October 1996—it is out-of-date USPS® Standards Caution!

9. March 2005 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 USPS® Standards

10. March 2005 Standard Mail Must be Standard Mail for mailing at nonprofit rates—not First-Class Mail What are other content rules for mailing at nonprofit rates? Mailpiece Must Be Standard Mail

11. March 2005 An organization authorized to mail at nonprofit rates –May mailonly its own material –May mail only its own material at the nonprofit rates –May notdelegateorlenduseofitsnonprofit authorization –May not delegate or lend use of its nonprofit authorization to any other person or organization Must Be Authorized Organization’s Material

12. March 2005 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 Must Not Be Ineligible Cooperative Mailing

13. March 2005 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 Must Not Be Ineligible Cooperative Mailing

14. March 2005 To determine if a mailing is cooperative, ask questions listed in CSR PS-209 Who devised, designed, prepared, and paid for the mailpiece? How to Determine if Mailing is Cooperative

15. March 2005 November 2003 standard exempts certain fundraising mailings from cooperative mail rule solicitations for monetary donations –Limited to solicitations for monetary donations Not for fundraising events list of donors contact information –Nonprofit organization must be provided list of donors and contact information (or waive right to receive list) New Exception to Cooperative Mailing Rule New!

16. March 2005 Prohibited or restricted advertising may not be mailed at nonprofit rates Must Not Be Prohibited/Restricted Advertising What’s TIF”? What’s “TIC”?

17. March 2005 creditdebitcharge card similar financial instrument or account 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 no exceptions –There are no exceptions to prohibitions for credit cards (etc.) Prohibited or Restricted Advertising

18. March 2005 advertising for a bank’s services other than prohibited credit cards But advertising 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 Advertising for Banking Services Open a Savings Account at ABC Bank Today!

19. March 2005 commercial insurance travel arrangements The 1990 statute also restricts mailing material at nonprofit rates if it contains advertising for commercial insurance or travel arrangements Prohibited or Restricted Advertising

20. March 2005 TIF TIF These advertising prohibitions and restrictions commonly are referred to as TIF – Travel, Insurance, Financial TIC C TIF –Sometimes called TIC (for Credit) – but we’ll call it TIF Prohibited or Restricted Advertising

21. March 2005 Advertising for insurance may be mailed at nonprofit rates if authorized nonprofit rates –Organization promoting insurance is authorized nonprofit rates at entry office designed for promoted to [members] –Policy is designed for and primarily promoted to organization’s members, donors, supporters, beneficiaries [members] notgenerally commercially available –Coverage is not generally commercially available Restricted Advertising for Insurance

22. March 2005 not considered “generally commercially available” Revised standards clarify that insurance is not considered “generally commercially available” if thenonprofit organization is theinsurer or… –Coverage is provided by the nonprofit organization—i.e., the nonprofit organization is the insurer or… Restricted Advertising for Insurance New!

23. March 2005 Not Not “generally commercially available” if members may make tax- deductible donations to the nonprofit organization of their proportional shares of any income in excess of costs –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 Restricted Advertising for Insurance New!

24. March 2005 travel arrangement Advertising for a travel arrangement may be mailed at nonprofit rates if authorized nonprofit rates –Organization promoting the arrangement is authorized nonprofit rates at entry office and contributes substantially –Travel contributes substantially to one or more of the nonprofit organizations qualifying purposes Restricted Advertising for Travel Arrangements

25. March 2005 travel arrangement A travel arrangement has three elements (CSR PS-298) –Transportation –Destination –Accommodations Restricted Advertising for Travel Arrangements

26. March 2005 day trip thatdoesn’t includeaccommodations Advertising for a day trip that doesn’t include accommodations may be mailed at nonprofit rates in a periodical publication Restricted Advertising for Travel Arrangements 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.

27. March 2005 advertisingfora travelagent advertising for a travel arrangement Business-card-style advertising for a travel agent—agent’s name, address, phone number, email address, etc.—is advertising for a travel arrangement Restricted Advertising for Travel Arrangements Travis Argent “World’s best travel agent!” “World’s best travel agent!” Email me if you want to go places Email me if you want to go placesTravel@arrangements.com

28. March 2005 other products or services TIF Advertising for other products or services (not TIF ) may be mailed at nonprofit rates if substantially related –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 –Unrelatedadvertisingperiodical publication –Unrelated advertising is in a periodical publication Substantially Related Products and Services

29. March 2005 periodical publication A periodical publication must title – Have a title printed sheets – Be formed of printed sheets 25% non-advertising – Contain at least 25% non-advertising in each issue Advertising Unrelated Products and Services 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,

30. March 2005 periodical publication A periodical publication also must have – ID statement – ID statement on one of first 5 pages Title Title Issuedateissuenumber Issue date and issue number Frequency Frequency Name address Name and address of authorized organization Advertising Unrelated Products and Services 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,

31. March 2005 certify substantially related Mailers certify that advertised products and services are substantially related by signing the postage statement Mailer’s Certification

32. March 2005 Unrelated Business Income Tax(UBIT) 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) Mailer’s Certification

33. March 2005 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 Mailer’s Certification

34. March 2005 Low-cost products Low-cost products are mailable at nonprofit rates –Maximum value of a low-cost item –Maximum value of a low-cost item is established each year by IRS $8.302005 maximum “low-cost” value is $8.30 Products Mailable at Nonprofit Rates

35. March 2005 Value Value is actual cost to authorized nonprofit organization –Donated or contributed items –Donated or contributed items do not have to meet definition of a low-cost item –Organization’s publication –Organization’s publication that meets definition for a Periodicals publication may be mailed at nonprofit rates Products Mailable at Nonprofit Rates

36. March 2005 What can voting registration officials mail at nonprofit rates? state and local voting registration officials 1993 legislation extended nonprofit eligibility to state and local voting registration officials (CSR PS-309) Mailings by Voting Registration Officials

37. March 2005 what materials CSR PS-310 clarifies what materials voting registration officials may mail at nonprofit rates all standards applicable to mail entered 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 Mailings by Voting Registration Officials

38. March 2005 certify National Voter Registration Act of 1993 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 Mailings by Voting Registration Officials

39. March 2005 signing the postage statement Voting officials certify that the mailing complies with the Act by signing the postage statement Voting Official’s Certification

40. March 2005 independent analysis Acceptance personnel should not attempt an independent analysis whether the mailing is required or authorized by the National Voter Registration Act Mailings by Voting Registration Officials

41. March 2005 NONPROFIT APPLICATION FORMS

42. March 2005 Q & A Content Requirements ~ Nonprofit Standard Mail Thanks for Attending!