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5-3 Ineligible Mailings

Mail matter associated with joint enterprises between an authorized organization and a commercial enterprise (or other unauthorized mailer) is ineligible for the Nonprofit Standard Mail rates. Typically, ineligible cooperative mailings are arranged as follows:

Both parties contribute something to the mailing such as:

- A list of names and use of the Nonprofit Standard Mail authorization by the authorized organization.

- Payment of printing or mailing costs by the commercial enterprise.

Both parties take something out of the mailing (a share of the proceeds or profits).

Example: Ineligible Cooperative Mailing

Authorized organization B and grocery store G agree to prepare mailpieces for distribution to organization B's members. Organization B provides its membership list and uses its Nonprofit Standard Mail authorization to enter the mailpieces at nonprofit rates. Grocery store G pays the postage and donates to organization B two percent of the sales to organization B's membership during a 1-year period. Because grocery store G pays the cost of the mailing and derives benefits from it, this cooperative mailing is ineligible for nonprofit rates.

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