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 with Mary Calahan, Account Executive, Lorton Data Getting to Know Each Other Survey Nonprofit Experience How many years of experience do we have working in/with nonprofits? 1 to 3 4 to 6 7 or over Depth of Current Knowledge We are thoroughly aware of mailing rules and regulations. Yes Somewhat Not at all Supervision Level We are currently the head of Mail Services. Yes No The head of Mail Services reports to us. Yes No

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 to qualify for USPS Automation Discounts, Business Reply Mail, and Confirm Service Major Accomplishments in Postal Reform (Alliance of Nonprofit Mailers) 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. Cooperative Mailings Pub. 417 Non Profit Group Mailing NP B NP C NP D NP A Registered as Non Profit Obtained Non Profit Permit to use for mailings for Non Profit customers one at a time. Ghost Non Profit Number links to Nonprofit status of NP Orgs

Cooperative Mailings Examples Non Profit O Hires Commercial Mailer Examples: Acceptable Principal-Agent Relationships Permit can be Non Profit O or Commercial Mailer s Non Profit Permit PRSRT STD US POSTAGE PAID Non Profit PERMIT NO. 32062 U of ZX Hires Big Mail Permit is U of ZX 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. 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 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 Organization O s O permit imprint number (identified with "Nonprofit Organization," "U.S. Postage Paid," etc.) OR Commercial mailing agent s s Non Profit Permit number. This arrangement is considered 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. Nonprofit Standard Mail Eligibility Pub. 471 Applicable case studies Membership renewal solicitation Publications containing advertising Mail piece containing sweepstakes entry information For extensive information on this publication, visit the following link: http://pe.usps.com/text/pub417/welcome.htm

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.

Classes of Mail First-Class Mail First-Class Mail includes: cards letters flats parcels that weigh 13 ounces or less Commercial Plus parcel weight up to 16 ounces see http://pe.usps.gov/text/qsg300/q430.htm#1009536 Prices are the same regardless of how far the mail travels Postage includes forwarding and return services Does not include address corrections unless requested

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 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 preferred term by USPS is Standard Class 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 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 CASS Certification is required for any Presort discount mailings.. Most of the savings from bulk mailing comes from presorting, not from adding a barcode to your mail piece. However, additional savings are applicable if you barcode your mail pieces. CRRT sorting does not mean mailing to every address. There is a minimum of 10 addresses in a carrier route to qualify for CRRT discount 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. 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 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 1-121 12 Mail piece is forwarded @ no charge separate notice of new address is provided Address correction fee is charged Months 13-18 18 Mail piece is returned with new address @ no charge After month 18 or UAA Mail piece is returned with reason for non-delivery attached @ no charge 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 www.usps.com for a complete listing of associated mail fees and discounts. CASS A Definition Coding Accuracy Support System CASS refers to verification that software outputs correct postal information ZIP+4 file has gone through a software that has been CASS certified. Widely used by the USPS when they refer to the verification status of an address list Running through CASS certified software 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 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 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? 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 Link, 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 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 Link National Change of Address Best-known hygiene process USPS issues updates monthly to its file of @ 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% (http://www.targetmarketingmag.com)

Intelligent Mail Barcode At some point in the future, USPS will require the IMB on each mail piece 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

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 visit https://ribbs.usps.gov/index.cfm?page=intellmailmailpieces 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

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

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 106-384 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? For questions after the webinar please contact Lynne at ldbecker1@earthlink.net

Resources United States Postal Service (USPS) - http://www.usps.com/welcome.htm?from=global_header&page=homepage Postal : Coming Clean - How to get the most impact from list hygiene By Jennifer Williams & Bill Singleton - http://www.targetmarketingmag.com/article/how-get get-most-impact-list- hygiene-150029_1.html USPS - D1RECT MA1L 3Y 7HE NUM3ER5 RIBBS - Rapid Information Bulletin Board System - http://ribbs.usps.gov/ Alliance of Nonprofit Mailers - http://www.nonprofitmailers.org/index.php/site/about/history/ NACUMS www.nacums.org