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Mailing Non-Profit Means Substantial Postage Savings

By: Andrew Glover
December 10, 2019
Categories: ,

Nonprofit postage is lower than regular postage prices. Organizations that want to mail with nonprofit USPS marketing prices must first meet the Postal Service eligibility requirements. You can cut your postage spending from $0.291 per piece to as low as $0.173 per piece, which is an $11,800 postage savings on a direct mail campaign with 100,000 mailers. You need the nonprofit mailing permit before you receive the discounted mailing rates.

Guidelines For Shipping

Nonprofit postage prices are only available through domestic mail. Rates do not apply for international mailers. A nonprofit status from the IRS doesn’t automatically qualify your organization to mail at nonprofit rates.

Organizations that typically are eligible for nonprofit privileges include agricultural, educational, fraternal, labor, philanthropic, religious, scientific, veterans, and some political committees.

Your organizations may apply and receive nonprofit authorization, but there are restrictions as to what you can mail at not-for-profit prices. There are restrictions on the amount of advertising you do and the kind of advertising.

How to Apply for Nonprofit Mailing Prices

Get a copy of PS Form 3624, Application to Mail at Nonprofit USPS Marketing Mail Prices, and fill it out.

Lines 1-8 and 10-17 are self-explanatory. But for line 9, check only one category under which you are applying.

You need to provide some additional documentation to support your claim for nonprofit pricing. You can include formative papers like articles of incorporation, constitution, or charter. An IRS letter of exemption from payment of federal income tax may help support your claim. Also, other evidence of nonprofit status is helpful, including a financial statement prepared by a responsible party like a certified public accountant. Financial statements can include balance sheets or income statements.

Once you submit your documentation, a postal specialist will contact you directly if they have any additional questions. Applying online can expedite this process. Sending a hardcopy application usually takes two weeks for your application approval.

You can read the full list of application steps here.

USPS Postage Fees

There isn’t a fee to apply for nonprofit status.

There is an annual mailing fee when you submit a mailing. Paying the annual mailing fee permits you to mail a particular class of mail from individual postal facilities for a year. As an example, you need to have two different permits to send First-Class Mail and USPS Marking Mail commercial mailings from the same postal service location. You can’t mail in bulk at commercial prices until you pay our annual mailing fee.

A mailing permit is a permission to use a particular postage payment method for commercial mailings. There isn’t a price to apply for a permit to mail with precanceled stamps or a postage meter.

According to USPS, there is a fee to apply for a permit to mail with permit imprint. There is a one-time fee for setting up your permit imprint account. The permit imprint application fee is due when you turn in your application for a permit imprint. You need a permit and must pay an annual mailing fee at every Post Office location where you want to enter and pay for commercial mail.

Helpful Tips

You don’t need to pay your annual mailing fee until you bring in your first mailing. The yearly mailing fee is good for 365 days from the day you pay the price. If you aren’t going to mail anything for five weeks, wait to pay the fee until you take your mail to the Post Office. Waiting until you send out your first mail allows you to start your 365 at that moment instead of ahead of time.

To keep a permit imprint account active, you need to mail commercially at least once every two years. If your account becomes inactive, you need to pay the application fee again to make the account active again.

A postal employee can help you make sure you are taking the right steps in the correct order. Don’t let the process overwhelm you.

Sales Tax

Each state is different when it comes to sales tax. Some states don’t have sales tax at all. Other states will require documentation of tax exemption status. Here’s a look at each state’s sales tax information.

Mailing Pieces with Valtim

Valtim coordinates mailing with USPS. We assist our clients by helping them receive the best possible shipping rates. We also help with scheduling a delivery time that coordinates with the rest of your marketing campaign. We understand efficiency is critical. Contact Valtim with any shipping and postage concerns you may have, and we will guide you in the right direction.

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