Nonprofit organizations in the US are able to save thousands of dollars in postage expenses each year by mailing at the deeply discounted nonprofit rate. Smart nonprofits often partner with for-profit companies when fundraising. However, just because a charitable organization is approved to mail at the nonprofit rate doesn’t mean that they can partner with just any organization and still qualify for deeply discounted postage. The US Post Office prohibits partnering with businesses in specific industries.
Which industries are specifically restricted? The US Post Office goes out of its way to single out the following 3 industries 1) credit card companies 2) insurance companies 3) travel agencies.
What are the consequences of partnering with one of these industries? The US Post Office has the right to make the nonprofit pay the higher presort standard rate (typically about 10 cents more per piece in postage), or they can refuse to mail the piece if the nonprofit is unwilling to pay this increased postage rate.
What’s an example of a restricted partnership? Here’s a common example involving a travel agency: “10% of the purchase price of your Caribbean Cruise will be donated to xyz charity.” This is an example of a mailing that benefits a nonprofit, but does not qualify to be mailed at the nonprofit rate; the piece can still be mailed, but not at the nonprofit rate.
What about nonprofit mail pieces that are inside envelopes? In the case where the nonprofit mail piece is a postcard then it’s almost impossible for the US Post Office to miss when a nonprofit partners with a restricted business. If the mail piece is in an envelope, it’s certainly harder to detect, but it is still considered a restricted mailing, and if the US Post Office discovers this violation, postage will certainly be increased.
All US-based nonprofit organizations should take the time to get approved to mail at the nonprofit rate-it’s 100% free. If your organization is not already set up, click here to read my post that explains how to get approved and where to find the necessary paperwork. For those that are already set up, partnering with businesses is a great strategy, as long as higher postage is paid when working with restricted industries.
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