Cooperative Mail Rules


Section
E670
5.0

ELIGIBILITY

ELIGIBLE AND INELIGIBLE
MATTER
(excerpt)


Organization's
Own Mail

5.1

 

An organization authorized to mail at the Nonprofit Standard rates may mail only its own matter at those rates. An authorized organization may not delegate or lend the use of its authorization to mail at the Nonprofit Standard Mail Rates to any other person or organization.


Ineligible
Matter

5.2

No person or organization may mail, or cause to be mailed by contractual agreement or otherwise, any ineligible matter at the Nonprofit Standard Mail rates.


Cooperative
Mailing

5.3

A cooperative mailing may be made at the Nonprofit Standard Mailing Mail rates only when each of the cooperating organizations is individually authorized to mail at the Nonprofit Standard Mail rates at the post office where the mailing is deposited. A cooperative mailing involving the mailing of any matter on behalf of or produced for an organization not itself authorized to mail at the Nonprofit Standard Mail rates at the post office where the mailing is deposited must be paid at the applicable Regular or Enhanced Carrier Route Standard Mail rates. The mailer may appeal the decision under G020.


Prohibitions
& Regulations
5.4

Nonprofit Standard Mail rates may not be used for the entry Restrictions of material that advertises, promotes, offers, or, for a fee or consideration, recommends, describes, or announces the availability of:

a. 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 to mail at the Nonprofit Standard Mail rates at the entry post office.

b. Any insurance policy, unless the organization promoting the purchase of such policy is authorized to mail at the Nonprofit Standard Mail rates at the entry post office; the policy is designed for and primarily promoted to the members, donors, supporters, or beneficiaries of that organization; and the coverage provided by the policy is not generally otherwise commercially available as explained in 5.5

c. Any travel arrangement, unless the organization promoting the arrangement is authorized to mail at the Nonprofit Standard Mail rates at the entry post office; the travel contributes substantially (aside from the cultivation of members, donors, or supporters, or the acquisition of income or funds) to one or more of the purposes that constitute the basis for the organization's authorization to mail at the Nonprofit Standard Mail rates; and the arrangement is designed for and primarily promoted to the members, donors, supporters, or beneficiaries of that organization.

d. Any other product or service unless one of these exceptions is met:
(1) The sale of the product or the provision of such services is substantially related to the exercise or performance by the organization of one or more of the purposes used by the organization to qualify for mailing at the Nonprofit Standard Mail rates. The criteria in 5.6 are used to determine whether an advertisement, promotion, or offer for a product or service is for a substantially related product or service and, therefore, mailable at the Nonprofit Standard Mail rates.
(2) The product or service is advertised in Standard Mail (A) material meeting the prescribed content requirements for a periodical publication. The criteria in 5.8 are used to determine whether the Standard Mail (A) material meets the content requirements for a periodical publication.


Definitions,
Insurance
5.5

For the standard in 5.4b:

a. The term not generally otherwise commercially available applies to the actual coverage stated in an insurance policy, without regard to the amount of the premiums, the underwriting practices, and the financial condition of the insurer. When comparisons are made with other policies, consideration is given to policy coverage benefits, limitations, and exclusions, and to the availability of coverage to the targeted category of recipients. When insurance policy coverages are compared for determining whether coverage in a policy offered by an organization is not generally otherwise commercially available, the comparison is based on the specific characteristics of the recipients of the piece (e.g., geographic location or demographic characteristics).

b. The types of insurance considered generally commercially available include, but are not limited to, homeowner's, property, casualty, marine, professional liability (including malpractice), travel, health, life, airplane, automobile, truck, motorhome, motorbike, motorcycle, boat, accidental death, accidental dismemberment, Medicare supplement (medigap), catastrophic care, nursing home, and hospital indemnity insurance.


Definitions,
Substantially
Related
Advertising
Products
5.6

For the standards in 5.4d

a. To be substantially related, the sale of the product or the provision of the service must contribute importantly to the accomplishment of one or more of the qualifying purposes of the organization. This means that the sale of the product or providing of the service must be directly related to accomplishing one or more of the purposes on which the organization's authorization to mail at the Nonprofit Standard Mail rates is based. The sale of the product or providing of the service must have a causal relationship to the achievement of the exempt purposes (other than through the production of income) of the authorized organization. (Income produced from selling an advertised product or activity, even if the income will be used to accomplish the purpose or purposes of the authorized organization.)

b. Standards established by the internal revenue service (IRS) and the courts with respect to 26 USC 513(a) and (c) of the Internal Revenue Code are used to determine whether the sale or provision of an advertised product or service, whether sold or offered by the organization or by another party, is substantially related to the qualifying purposes of an organization. (Advertisements in Standard Mail (A) material that meets the content requirements for a periodical publication need not meet the substantially related standard to be mailable at the Nonprofit Standard Mail rates. See 5.4d(2) and 5.8).
(1) If the advertising material is for a product or service that is not substantially related, it is not mailable at the Nonprofit Standard Mail rates.
(2) If an organization pay unrelated business income tax on the profits from the sale of a product or the provision of a service, that activity is by IRS definition not substantially related. The fact that an organization does not pay such tax, however, does not establish that the activity is substantially related because other criteria may exempt the organization from payment. The inclusion of an advertisement for a product or service in a mailpiece may disqualify the piece for Nonprofit Standard Mail rates, even if the mailer does not pay unrelated business income tax on its sale.
(3) Third-party paid advertisements may be included in material mailed at the Nonprofit Standard Mail rates if the products or services advertised are substantially related to one or more of the purposes for which the organization is authorized to mail at Nonprofit Standard Mail rates. However, if the material contains one or more advertisements that are not substantially related, the material is not eligible for the Nonprofit Standard Mail rates, unless it is part of material that meets the content requirements described in 5.8 and is not disqualified from using the Nonprofit Standard Mail rates under another provision.

c. Announcements of activities, e.g. bake sale, car wash, charity auction, oratorical contest, are considered substantially related if substantially all the work is conducted by the members or supports of an authorized organization without compensation.

d. Advertisements for products and services, including products and services offered as prizes or premiums, are considered substantially related if the products and services are received by an authorized organization as gifts or contributions.

e. An advertisement, promotion, offer, or subscription order form for a periodical publication meeting the eligibility criteria in E211 and published by one of the types of nonprofit organizations listed in 2.0 is mailable at the Nonprofit Standard Mail rates.


Other Matter
5.7

An authorized nonprofit organization's material is not disqualified from being mailed at the Nonprofit Standard Mail rates solely because that material contains, but is not primarily devoted to:

a. Acknowledgments of organizations or individuals who have made donations to the authorized organization.

b. References to and a response card or other instructions for making inquiries about services or benefits available from membership in the authorized organization, if advertising, promotional, or application materials for such services or benefits are not included.


Periodical
Publication
Content
Requirements
5.8

Advertisements for products and services in material that meets the content requirements for a periodical publication are mailable at the Nonprofit Standard Mail rates. The material mailed must meet these standards:

a. Have a title. The title must be printed on the front cover page in a style and size of type that make it distinguishable from other information on the front cover page.

b. Be formed of printed sheets. (It may not be reproduced by stencil, mimeograph, or hectograph. Reproduction by any other process is permitted.) Any style of type may be used.

c. Contain an identification statement on one of the first five pages of the publication that includes these elements:
(1) Title.
(2) Issue date. The date may be omitted if it is on the front cover or cover page.
(3) Statement of frequency showing when issues are to be published (daily; weekly; monthly; monthly except June; four times a year in June, August, September, and December; annually; irregularly, etc.).
(4) Name and address of the authorized organization, including street number, street name, and ZIP+4 or 5-digit ZIP Code. The street number and street name are optional is there is no letter carrier service.
(5) Issue number. Every issue of each publication is numbered consecutively in a series that may not be broken by assigning numbers to issues omitted. The issue number may be printed on the front or cover page instead of in the identification statement.
(6) International Standard Serial Number (ISSN), if applicable.
(7) Subscription price, if applicable.

d. Consist of at least 25% nonadvertising matter is each issue. Advertising is defined in E211.