5 Cooperative Mailings

	USPS Home \| Postal Explorer Home

5-2 Eligible Mailings

5-2.1 Scope of Cooperative Mail Rule

The cooperative mail rule generally applies to all mail entered as Nonprofit Standard Mail. However, effective November 13, 2003, the Postal Service™ adopted a limited exception to this policy for certain fundraising mail in order to assist nonprofit organizations obtain the monetary funding needed to support their programs. Mailings within the exception are not subject to the cooperative mail rule and are not denied entry at nonprofit rates under that provision, but remain subject to all other eligibility standards for Nonprofit Standard Mail.

Nonprofit Standard Mail is not subject to the cooperative mail rule if it meets each of the following criteria:

• It is mailed on or after November 13, 2003.

• It solicits monetary donations for the authorized nonprofit mailer.

• It does not promote or otherwise facilitate the sale or lease of any goods or service.

• The authorized nonprofit mailer is given a list of each donor, contact information (e.g., address, telephone number) for each, and the amount of the donation, or waives in writing the receipt of this list.

5-2.2 Eligibility Factors

In order to determine whether a mailing is eligible for nonprofit rates, the USPS evaluates the answers to these questions (see CSR PS-209):

• Who devised, designed, and paid for the mailpiece?

• Who paid the postage on the mailing, either directly or indirectly?

• How are the profits and revenues divided from the mailing or an enterprise it supports?

• What risks are entailed with the mailing or with an enterprise it supports and who bears these risks?

• Who makes managerial decisions about the content of the mailing or the enterprise it supports?

• What are the participants' intentions and interests?

5-2.3 Commercial Mailing Agent

A commercial mailing agent (or other unauthorized entity) may enter mail at the nonprofit rates for an authorized organization, if the organization can show that the relationship is a legitimate principal-agent relationship.

If a question arises whether a mailing is eligible for nonprofit rates, the authorized organization must provide, on request, documentation of the relationship that includes all contracts between the organization and other parties to the mailing and any other information requested by the Postal Service.

Examples: Acceptable Principal-Agent Relationships

Authorized organization O hires commercial mailing agent C at a fixed fee to print and mail organization O's newsletter at nonprofit rates. Organization O's name and return address appear on the envelope containing the newsletter. The envelope shows agent C's permit imprint number (identified with "Nonprofit Organization," "U.S. Postage Paid," etc.). This arrangement is considered an acceptable principal-agent relationship.

Authorized university U enters into an agreement with agent A (a for-profit company) to handle university U's conference. Agent A's sole function is to plan and manage the conference. For this function, agent A receives $2,500 (a fixed payment that is consistent with the amount agents typically receive for such services in that city). According to the agreement, agent A enters conference-related mailings for university U at nonprofit rates. This arrangement is considered an acceptable principal-agent relationship.