Quick Service Guide 670 Standard Mail Nonprofit Eligibility

August 2003

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Related QSGs: 630 , 631, 632, 633, 640, 641, 642, 643, 644

Eligibility Overview (E670)

Only political committees, voting registration officials, and organizations that meet specific standards for qualified nonprofit organizations and that have received specific authorization from the USPS (E670) may mail eligible matter at the Nonprofit Standard Mail rates. Except for mailings deposited under the plant-verified drop shipment program (P950), a separate authorization is required at each post office where Nonprofit rate mailings are deposited. Pieces mailed at the Nonprofit Standard Mail rates must meet the general standards for Standard Mail (E610) and the standards specific to any other discount or rate claimed.

Qualified organization: organization is not organized for profit, and none of its net income inures to the benefit of any private stockholder or individual. Types of organizations that may qualify (E670): religious, educational, scientific, philanthropic, agricultural, labor, veterans, and fraternal. Voting registration officials and national and state political committees may be qualified without regard to their nonprofit status.

Ineligible nonprofit organizations: service, social, and hobby clubs; citizens' and civic improvement associations; state, county, and municipal governments are generally not eligible.

Prohibitions and restrictions: Nonprofit rates not permitted for mailing promotional material for credit cards, insurance policies, and travel arrangements. Authorized organizations may not let any other person or organization use their authorizations to mail at Nonprofit Standard Mail rates.

Cooperative mailings: mailable at Nonprofit Standard Mail rates only if each cooperating organization is individually authorized to mail at Nonprofit Standard Mail rates where the mailing is deposited.

Authorizations: Form 3624 required at post office where mail is deposited; Form 3623 required for each additional mailing office.

Rates and Fees (R600)

Nonprofit Standard Mail

Letter-size minimum per piece
Presorted
Basic        $0.165
3/5             0.153
Automation
Mixed AADC   $0.144
AADC               0.136   
3-Digit                0.129
5-Digit                0.114

Nonletter-size minimum per piece
Presorted 
Basic        $0.230
3/5             0.183
Automation
Basic        $0.189
3/5             0.166

Nonprofit Enhanced Carrier Route

Nonletter-size minimum per piece
Basic                 $0.126
High Density        0.110
Saturation            0.104

Nonprofit letter-size pieces that meet any one of the nonmachinable characteristics in C050.2.2 are nonmachinable and are subject to a $0.02 nonmachinable surcharge.
Residual Shape Surcharge: Add $0.23 for Nonprofit and $0.20 for Nonprofit Enhanced Carrier Route for pieces that are prepared as parcels or are neither letter-size nor flat-size (E610.5.5).

Annual presort mailing fee $150.00. Destination rate eligibility: standards in E651.

Addressing (A010)

Name and return address on outside of mailpiece must be that of the authorized organization; pseudonyms or bogus names of persons or organizations prohibited (E670.6). All matter mailed at Nonprofit Standard Mail rates must identify the authorized organization. The authorized organization's name and return address must appear in at least one of two places: on the outside of the mailpiece or in a prominent place on the material mailed.

Characteristics and Content (C600)

Same as Standard Mail generally; some restrictions on promotional material (E670).

Mail Preparation and Sortation (M600)

Marking:

• "Nonprofit Organization" or "Nonprofit" or "Nonprofit Org."

Postage statement: See individual Quick Service Guides.
Identification: name of authorized nonprofit organization.
For mail preparation graphic, see the appropriate Quick Service Guide:

630 Presorted Letters—Nonmachinable 
631 Presorted Letters—Machinable
632 Presorted Flats 
633 Presorted Irregular Parcels 
640 Automation Letters
641 Automation Flats
642 Enhanced Carrier Route—Letters
643 Enhanced Carrier Route—Flats and Parcels
644 Enhanced Carrier Route—Automation Letters

Postage and Payment Methods (P600)

Precanceled stamp (P023 ), meter (P030), or permit imprint (P040); applicable conditions and restrictions.

Frequently Asked Questions

Q. What is Nonprofit Standard Mail (NSM)?

A. Nonprofit Standard Mail is printed matter such as pamphlets, newsletters, direct mail, or merchandise that weighs less than 16 ounces and is eligible for reduced rates as a nonprofit mailing.

Q. What can an authorized organization mail at nonprofit rates?

• An authorized organization can mail only its own mail.
• Products may be mailed at NSM rates only if they meet one of the following requirements:
• It must be a low-cost item. "Cost" is based on the price paid by the nonprofit organization to acquire the product and not the sale price. (At the beginning of each calendar year, the value of low cost is adjusted for the cost of living (see E670.5.11 for current cost)).
• It must be a gift or donation obtained by your organization at no cost or,
• It must be a periodical publication of a nonprofit organization. (Note: If it contains advertising, it is also subject to the information provided below.)

Q. What types of advertising are not eligible?

A. The following types of advertising are not eligible:

• Any advertisements that promote credit, debit, or charge cards are always prohibited at NSM rates.
• Advertising that promotes or offers any insurance policy is ineligible for NSM rates, unless it is promoted to members, donors, supporters, or beneficiaries of the authorized mailer and provided the policy coverage is not generally, otherwise, commercially available.
• Advertising or announcements that promote the availability of any travel arrangement are ineligible unless the arrangement is promoted to members, donors, and supporters of the organization, and the reason for the travel must contribute substantially to the organization's qualifying purpose.
• Advertisements for products or services that are not substantially related to one or more of the qualifying purposes of the organization.

Note: Other than travel, insurance and credit, debit, and charge card advertisements, an organization may include advertisements that are not substantially related to their primary purposes if these advertisements are in a mailpiece prepared to meet the content requirements of a Periodicals publication.

Q. How can I make sure my newsletter meets the content requirements or a Periodicals publication?

A. To meet those requirements, a newsletter must:

• Have a title printed on the front cover.
• Consist of printed sheets and not be reproduced by stencil, mimeograph, or hectograph processes.
• Contain an identification statement within the first five pages. This statement must include the title, issue dates, publication frequency, name and address of the organization, issue number, International Standard Serial Number, if applicable; and the subscription price, if applicable.
• Ensure that at least 25 percent of the content be nonadvertising.

Q. I want to hire a mailing house to print and mail my organization's newsletter. We are authorized to use NSM rates, but the mailing house isn't. Is the mailing eligible for NSM rates?

A. As an organization authorized to mail at NSM rates, you can use a commercial firm to prepare and present your mailing for you at those rates. The issue is whether the arrangement is a legitimate "principal-agent" relationship. If you are paying a fee to the mailing house to prepare your mailing, and the mailing house has no other interest in the mailing, it should be eligible for NSM rates.

However, if the mailing house shares in the advertising revenues, places its own advertisement(s) in the mailpiece at no cost, or will not receive any fees for its services (reimbursement for expenses), the mailpiece would probably not be eligible for NSM rates. Under this arrangement, the mailing house now has a vested interest in the mailing and is no longer functioning in a principal-agent capacity.

This guide is an overview only. For the specific DMM standards applicable to this category of mail, consult the DMM sections referenced above and the general sections within each DMM module.