House Government Reform Committee Chairman Rep. Dan Burton (R-IN) has introduced legislation overriding a U.S. Postal Service rule denying reduced rates to nonprofit mailers based on their business relationships with commercial entities. Burton’s bill was introduced Thursday, March 22.
The measure, HR-1169, is the first major piece of postal-related legislation introduced by a member of the House Government Reform Committee member since the elimination of its postal subcommittee earlier in the year.
Under existing postal service rules a mailing that is jointly developed by nonprofit and commercial entities is ineligible to be mailed at reduced-rate postage if both "contribute something" to it, such as combining mailing lists; sharing printing and mailing costs or any profits generated by the mailing.
The USPS, according to Burton, has been misinterpreting the rules laid down by Congress years ago when it granted reduced-rate postage status to charities and other nonprofit groups.
The rules, he explained, were "originally designed to prevent commercial parties that do not have a nonprofit postal permit from entering into cooperative arrangements with nonprofit permit holders to mail commercial matter at reduced nonprofit rates."
Burton said the bill would permit qualified nonprofit groups to mail at reduced rates "regardless of whether they employ commercial companies to help them to prepare and mail their letters or engage in other commercial arrangements."
But, he added that a nonprofit mailing cannot "promote or advertise products or services on behalf a commercial entity."
The legislation rectifies a problem that has plagued charitable and other nonprofit organizations for years because "it defines the relationship between nonprofits and commercial entities in getting their appeals in to the hands of potential donors," according to Neal Denton, Alliance of Nonprofit Mailers executive director.
The measure, he added "does not widen or expand the [postal service's] eligibility requirements for nonprofit, reduced rate postage."
