Cooperative Mailing

Nonprofit Mail Agreements May be Revisited
Recent hearings by the House Oversight and Government Reform Committee have raised awareness of abuses by some commercial fundraisers who are profiting by conducting direct-mail campaigns at the lower nonprofit mail rate and then keeping the lion’s share of the proceeds. As a follow up to the hearings, the Committee is now looking into postal regulations, known as the “cooperative mail rule,” that govern agreements between charities and commercial fundraisers for such mailings. When these rules were last modified in 2003, Independent Sector and others supported safeguards to limit the circumstances under which abuse typically occurs, and to ensure that the nonprofit, and not a for-profit entity, controls a nonprofit mailing. IS recently sent a letter (PDF) to Oversight Committee Chairman Henry Waxman (D-CA) reiterating our support for reforming the cooperative mail rules.

Study Announced
The Postal Regulatory Commission announced a study in April 2008 to determine whether the cooperative mail rule contains adequate safeguards to protect against abuses of the nonprofit rate and deception of consumers.  The Commission requested comments on a number of questions, including to what extent abusive practices have occurred in connection with mailings sent under the rule. Independent Sector signed onto comments filed by the Alliance of Nonprofit Mailers and four other organizations —Association of Direct Response Fundraising Counsel, Association of Fundraising Professionals, DMA Nonprofit Federation, and National Catholic Development Conference— to propose changes in postal rules that would provide greater protection against abusive or deceptive fundraising practices, yet preserve the flexibility of small and start-up nonprofit organizations to enter into effective and affordable fundraising arrangements with for-profit fundraisers.

See Postal Regulatory Commission Study Notice (PDF)

Last Updated: June 24, 2008