U.S. Postal Service Explains How Charities Should Comply With New Restrictions

The U.S. Postal Service last week clarified what type of information charities may include in bulk mailings sent at nonprofit postage rates.

The service’s announcement was designed to clear up several months of confusion among nonprofit organizations over what type of information about recipients is allowed in mailings sent at reduced postage rates.

The confusion arose after the Postal Service issued a rule last fall that takes effect on June 1: Other than a recipient’s name and address, it says, additional personal information — such as the amount of the person’s previous donations, the date on which his or her membership will expire, or descriptions of the geographic region where that person lives — may be included only when used “in support of an advertisement or charitable solicitation.”

Many charity officials feared that wording meant they could no longer include personal information in letters asking people to volunteer, complete a survey, participate in an educational event, visit a charity’s Web site, or take part in other such activities.

But by clarifying what constitutes a solicitation, last week’s announcement allayed those concerns: A solicitation is defined as a request for any type of support related to an organization’s mission, whether it includes a financial donation or not.

The Postal Service noted that charities that use nonprofit rates must refrain from using certain types of language in mailings that acknowledge donors’ gifts. Effective June 1, charities may no longer refer to such acknowledgments as a “receipt” unless they mail at standard postal rates. Charities also cannot use nonprofit rates to send gift acknowledgments that urge donors to “keep this notice as a receipt for tax purposes” or “keep this for your records.”

Even so, as long as nonprofit groups avoid characterizing gift acknowledgments as receipts, they can allude to tax deductions donors may receive for their donation. Statements such as “your contribution may be tax deductible,” “no goods or services were provided in exchange for this gift,” or “the IRS requires written substantiation of gifts of $250 or more” are allowed — provided that nothing else in the mailing is portrayed as a receipt.

An online copy of the announcement, “Computer-Prepared Mailpieces Entered by Nonprofit Organizations,” is available at http://pe.usps.gov/text/CSR/PS-323.htm.