Understanding Fundraising Law: Postal Regulations
The U.S. Postal Service is enforcing nonprofit postal regulations more vigorously than in the past, perhaps because of the increasing difficulty in getting nonprofit postal subsidies funded by Congress. The Postal Service - authorized to spot-check bulk mail and to impose fines if abuses are uncovered - is concerned primarily with two areas:
fraudulent or misleading direct-mail pieces, and,
misuse of nonprofit postal permits by allowing the permit to be used in cooperative mailings with for-profit firms.
Restrictions on direct mail. For example, in one well-known case the Postal Service took action against a firm raising money for a nonprofit using a sweepstakes mailing. The mailing appeared to be a legal prize notification; however, the prize won by most recipients was only 10 cents. In that case, the Postal Service required that any future sweepstakes appeals include the value of any prizes and the odds of winning.
Some legislators would like to see further restrictions on direct-mail appeals, including requiring the real name and address of the organization or professional fundraiser to be included on the reply envelope and prohibiting fundraising appeals that resemble invoices.
The bulk mail coordinator at your local or regional post office is generally very helpful in answering questions bout the proper use of your nonprofit postal permit. Another source of information is the Alliance of Non-Profit Mailers (www.nonprofitmailers.org).
Return To:
Fundraising: Understanding Fundraising Law