Many Nonprofits find the application process for a nonprofit mailing permit confusing and unclear. The United States Postal Service requires several steps to apply for a nonprofit mailing permit. While the savings are huge, the application process can be difficult. So, in today’s post, we will cover this process in detail.

First, the United States Postal Service gives certain 501(c)(3) organizations the ability to send mail at significantly reduced rates. Using this program, your Nonprofit will apply directly to the Postmaster for a special postage account, bulk mailing permit and reduced nonprofit rates. Small nonprofits, especially many churches often have small budgets, so taking advantage of these reduced mailing rates can save a small fortune over time — money that can be put to use elsewhere to further your mission.

Does my organization qualify?

Organizations that typically are eligible for Postal Service nonprofit privileges include:

  • Agricultural
  • Educational
  • Fraternal
  • Labor
  • Philanthropic
  • Religious
  • Scientific
  • Veterans
  • Some political committees

Individuals are NOT eligible for nonprofit prices; also, not every organization is eligible, even though you may think it qualifies based on the list above. For example, business leagues, chambers of commerce, social and hobby clubs, and certain political organizations usually are NOT eligible.

Are there restrictions on what kind of mail I can send?

Yes, for instance, there are restrictions on the amount and kind of advertising you can do. Publication 417, Nonprofit Standard Mail Eligibility provides complete information about nonprofit eligibility, including the types of materials that may be mailed at the Nonprofit prices and instructions for applying for nonprofit mailing privileges

How to Apply for Authorization to Mail at Nonprofit Prices?

1. Get a copy of Form 3624, Application to Mail at Nonprofit Standard Mail Prices

2. Fill out Form 3624. Lines 1-8 and Lines 10-17 are self-explanatory. For Line 9, check the category (ONLY ONE) under which you are applying.

3. Required documentation. You must submit some documentation with your application to support your claim for nonprofit prices:

• Formative papers—e.g., articles of incorporation, constitution, or charter.

• IRS letter of exemption from payment of federal income tax.

• Other evidence of nonprofit status—e.g., a financial statement prepared by a responsible party such as a certified public accountant substantiating organization’s nonprofit status (statement must include balance sheets, income statement, notes, etc.).

 

4. Some mailers provide additional supporting documentation:

• List of the organization’s activities during the past 12 months.

• Financial statement showing receipts and expenditures for the past fiscal year, plus the budget for the current year.

• Other documents of operation—e.g., the organization’s bulletins, minutes of meetings, brochures.

 

5, Submit the completed form and supporting documentation to your postmaster or at the business mail entry unit. Applications may be submitted online by obtaining a logon and password at Business Customer Gateway at usps.com

6. Your application will be reviewed by the Postal Service. If there are any questions about the application or if additional supporting documentation is needed, a postal specialist will contact you directly. Hardcopy usually takes about two weeks for your application to be approved.

7. You can mail your organization’s material while the nonprofit application is pending. Until you receive nonprofit authorization, you must pay postage at the regular (higher) Standard Mail prices. Then, if your nonprofit application is approved, you can request a refund of the difference between the regular and nonprofit price.

8. To request a refund, complete Form 3533, Application for Refund of Fees, Products and Withdrawal of Customer Accounts.

10. Submit Form 3533 with a copy of your dated nonprofit application and copies of your postage statements. Be sure to keep copies of your postage statements to expedite the refund process. It takes about two weeks to receive your refund check.

Once you have been approved to mail at nonprofit privileges, in order to keep that authorization, you must make a nonprofit mailing at least once during a two-year period. Otherwise, your authorization could be revoked.

Your Nonprofit is now on the way to saving money you can put to use for better things.