Nonprofits and Working with the Postal Service
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1 Nonprofits and Working with the Postal Service CASE Online Speaker Series June 9, 2011 Presented by: Lynne Becker Founding Member National Association of College and University Mail Services Today s s Agenda Nonprofit Standard Mail Eligibility Publication 417 Classes of Mail CASS File Certification NCOA - Data Hygiene Techniques/List Scrubbing Intelligent Mail Barcoding **Mandatory beginning May, 2011 (to qualify for USPS Automation Discounts, Business Reply Mail, and Confirm Service Major Accomplishments in Postal Reform (Alliance of Nonprofit Mailers)
2 55% of Americans read the newspaper 95% have telephones 98% have television sets But everybody s got a mailbox. Nonprofit Standard Mail Eligibility Publication 417 Congress authorized these reduced rates back in 1951 Discusses eligibility, authorization, and the rules for mailing at the Nonprofit Standard Mail (nonprofit) rates. Application process Legal responsibilities for qualified mailings Civil and criminal penalties apply to false, fictitious, or fraudulent statements made in connection with a Nonprofit Standard Mail mailing
3 Pub. 417 Cooperative Mailings Cooperative Mailings Mailing produced by an authorized organization that "cooperates" with one or more organizations to share the cost, risk, or benefit of the mailing. May not be entered at the Nonprofit Standard Mail (nonprofit) rates unless all cooperating organizations are authorized to mail at these rates at the Post Office of mailing 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 ion can show that the relationship is a legitimate principal-agent 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 s to the mailing and any other information requested by the Postal Service. Cooperative Mailings - Examples 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 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 c an acceptable principal-agent 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 agent relationship.
4 Nonprofit Standard Mail Eligibility Pub. 471 Applicable case studies Membership renewal solicitation Publications containing advertising Mailpiece containing sweepstakes entry information For extensive information on this publication, visit the following link: Classes of Mail The Postal Service divides mail into different services, called "classes." Each class of mail has different features, service levels, postage prices, and presort requirements. For most mailings, the content of the material and postage will determine the class of mail you select
5 Classes of Mail First-Class Mail First-Class Mail includes: cards letters flats parcels that weigh 13 ounces or less Prices are the same regardless of how far the mail travels Postage includes forwarding and return services Does not include address corrections Classes of Mail Periodicals aka aka Second-Class Mail Newspapers, magazines, and other periodical publications whose primary purpose is transmitting information to an established list of subscribers or requesters Must be published at regular intervals, at least four times a year from a known office of publication
6 Classes of Mail Bulk Mail aka aka Third-Class Mail Refers to larger quantities of mail prepared for mailing at reduced postage Postal Service uses the terms "bulk" and "presorted" interchangeably Postal Service offers discounts for bulk mailings because you do some of the work that otherwise would have to be done by the Postal Service Sorting by ZIP Code Transporting mail to another postal facility Classes of Mail - Bulk In order to mail at commercial prices, you must: Get a mailing permit and pay an annual mailing fee Pay postage using one of the following methods: Pre-canceled stamps Postage meter Permit imprint (indicia) Make smart choices about the size, shape and weight of your mail piece
7 Classes of Mail - Bulk Ensure that your addresses are correct Sort by Zip Take your mail to the Post Office where you hold your mailing permit Minimum Quantities for a Bulk Business Mailing 500 pieces for First-Class Mail 200 pieces (or 50 pounds of mail) for Standard Mail Classes of Mail - Bulk IF you are not barcoding, you generally do NOT need CASS certification for bulk mailing. Most of the savings from bulk mailing comes from sorting, not from barcoding. If you don't barcode, you don't need 9-digit 9 zip codes, so you do not need CASS! Exception If you are sending a "carrier route" mailing, (mailing to every house or business on a mail carrier's route) This type of mailing needs special sorting, and CASS certification must be done to make sure your list has current mail route information. Most mailers do NOT do carrier route mailings.
8 The choices you make can result in significant postage savings!! USPS Endorsements Return Service Requested Temp-Return Service Requested Address Service Requested Change Service Requested
9 USPS Endorsements Return Service Requested Temp-Return Service Requested If undeliverable-as as-addressed addressed (UAA), the mail piece is returned with the new address or reason for non- delivery No charge If UAA and a temporary change-of of-address has been filed, the mail piece is forwarded at no charge No separate notice of a new temporary change-of of- address is provided USPS Endorsements Address Service Requested Months Mail piece is no charge separate notice of new address is provided Address correction fee is charged Months Mail piece is returned with new no charge After month 18 or UAA Mail piece is returned with reason for non-delivery no charge
10 USPS Endorsements Change Service Requested Separate notice of new address or reason for non-delivery provided Address correction fee is charged Mail piece is then disposed of by USPS Available for First-Class Mail only when used in conjunction with electronic ACS Service Please visit for a complete listing of associated mail fees and discounts.
11 CASS A Definition Coding Accuracy Support System Widely used by the USPS when they refer to the verification status of an address list CASS improves the accuracy of carrier route, five-digit ZIP,, ZIP + 4, and delivery point codes that appear on mail pieces CASS File Certification CASS Stage I - Optional A self-test that helps developers measure and diagnose the performance of their address-matching software when it is applied to a CASS test address file Contains approximately 150,000 test addresses extracted from the City State and ZIP + 4 files with samples of all types of addressing used around the country Stage I results assist developers with software debugging and troubleshooting in preparation for Stage II of the CASS certification process
12 CASS File Certification CASS Stage II Required for certification Graded by NCSC and is used to evaluate address- matching software performance by processing a test address file File contains approximately 150,000 test addresses that are extracted and presented in the same makeup and mixture as Stage I-only I no answers are provided Customers use their address-matching software to apply the correct codes CASS File Certification Match rates using CASS Certified software vary greatly depending on address hygiene, the quality of addresses used, and the timeliness of the customer database update applications An address with an incorrect five-digit ZIP Code, ZIP + 4 code, carrier route code, or an address with no ZIP + 4 code can contribute to delays in processing mail
13 CASS File Certification To be CASS Certified, participants must: pass with a minimum score of 98.5% for ZIP + 4, carrier route, five-digit and LACSLink 100% for delivery point coding, elot, DPV, RDI and Perfect Address Certification is valid until the end of the current annual period (i.e., from August 1 of one year through July 31 of the next) To remain CASS certified for each annual period, developers must reapply for certification and meet the minimum accuracy requirements during Stage II testing What is File Scrubbing? Scrubbing?
14 Data Hygiene File Scrubbing Scrubbing your mailing files consists of applying various procedures intended to decrease the number of undeliverables, in turn, increasing your overall revenue. Increased revenue = SUCCESS!! Data Hygiene File Scrubbing At minimum, need to apply address standardization, NCOA, and sort your file to receive discounts Beginning Nov. 23, 2008, it became mandatory to update the change-of of- address information on your file within 95 days of your actual mailing to get the maximum postal discounts from USPS
15 Data Hygiene File Scrubbing Address Standardization Fully compliant with USPS standards Required in order to apply other scrub techniques Moves name and address elements into correct fields Formats address & adds ZIP+4 Confirms whether or not address is in a valid U.S. address delivery range Data Hygiene File Scrubbing NCOA National Change of Address Best-known hygiene process USPS issues updates monthly to its file 160 million change-of of-address records Database consists of names and addresses for individuals, families and businesses Average rate of updating records in your file to current deliverable addresses is 3% (
16 Intelligent Mail Barcode* *Mandatory beginning May, 2011 (to qualify for USPS Automation Discounts, Business Reply Mail, and Confirm Service) To date, mailers have deposited more than 50 billion mailpieces with Intelligent Mail barcodes. Combines the data of the existing POSTNET and the PLANET Code barcodes, as well as other data, into a single barcode. Imb is used to sort and track letters and flats as they move through the postal sorting equipment. Intelligent Mail Barcode - Advantages The Intelligent Mail barcode is the result of the Postal Service s s efforts to develop more robust codes capable of encoding more information, while minimizing the space used on the mailpiece. Greater overall data capacity than existing barcodes Provides mailers with more digits for their use, allowing for unique identification of up to a billion mailpieces per mailing
17 Intelligent Mail Barcode - Advantages Provides more accurate and detailed information about mailings which can enable better decision making. Eliminates the need for multiple barcodes. At any given time you can access tracking reports that will let you know how many of your reply envelopes are on their way back to you with a gift! For more Q&A on Intelligent Mail Barcode, see attached handout or o visit gui des/uspsimb_qanda.pdf Alliance of Nonprofit Mailers Accomplishments in Postal Reform Alliance of Nonprofit Mailers sharing a vested interest in nonprofit postal policy Established in 1980 with a handful of nonprofits Incorporated in 1984 with eight original Board member organizations: American Association of Retired Persons American Cancer Society American Lung Association National Catholic Development Conference National Easter Seal Society National Wildlife Federation March of Dimes Birth Defects Foundation St. Jude Children s s Research Hospital The only organization to solely represent nonprofit mailers in every rate case proceeding since 1980
18 Alliance Accomplishments in Postal Reform 2006: Postal Reform Legislation Prevents Massive Postage Rate Increases Instrumental in passage of The Postal Accountability and Enhancement Act of 2006, which protects nonprofit mailers from excessive postage rate increases and provides increased flexibility in shipping services. Secured continuation of preferred nonprofit postage rates in the new law and strongly promoted the new ratemaking process that caps postage rate increases at the rate of inflation. Alliance - Accomplishments in Postal Reform 2005: USPS Personalization Rule Alliance Stops Effort to Limit Content A Postal Service proposal to require First-Class postage rates on nonprofit mail that contained personalized information was defeated through an aggressive Alliance campaign 2003: Testimony Before President s Commission on the Postal Service Testimony at Commission hearings and direct discussion with Commission Members and staff led to the decision that existing preferences for favorable rates for the mailing of periodicals and a non-profit correspondence should be maintained
19 Alliance Accomplishments in Postal Reform 2000: Perfecting the Preferred Rate Structure Alliance Leads Passage of S.2686 With nonprofit rates set to increase faster than commercial categories, legislation was needed to correct the problem. The Alliance led the negotiations over corrective legislative language ge resulting in Public Law which linked nonprofit rates to commercial rates: Nonprofit Standard: Nonprofit rates revenue per piece 40% less than commercial mail. Nonprofit Periodicals: Rates set 5% below commercial editorial rate. Wrap-up/Questions?
20 Resources United States Postal Service (USPS) - Postal : Coming Clean - How to get the most impact from list hygiene By Jennifer Williams & Bill Singleton - get-most-impact-list- hygiene _1.html USPS - D1RECT MA1L 3Y 7HE NUM3ER5 RIBBS - Rapid Information Bulletin Board System - Alliance of Nonprofit Mailers - NACUMS
Nonprofits and Working with the Postal Service
Nonprofits and Working with the Postal Service CASE Online Speaker Series June 9, 2011 Presented by: Lynne Becker Founding Member National Association of College and University Mail Services In collaboration
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