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Nonprofits pay much lower postage rates with the USPS for marketing mail (bulk mail) than anyone else. Starting at just $0.138 for saturation letters compared to commercial rates of $0.227, that’s a 39% discount.
With some types of mail, nonprofits enjoy a discount of well over 50% compared to their commercial counterparts.
Considering postage is the largest cost of direct mail, that means that non-profit organizations have a considerable discount in the cost of doing direct mail.
Here is a table of nonprofit marketing mail postage rates for letters weighing 3.5 oz. or less that qualify for carrier route and automation discounts:
| Entry Discount | Saturation | High Density Plus | High Density | 5-Digit | AADC | Mixed AADC |
| None | $0.155 | $0.171 | $0.175 | $0.178 | $0.213 | $0.239 |
| DSCF | $0.138 | $0.154 | $0.158 | $0.161 | $0.196 | – |
Here is a table of the nonprofit marketing mail postage rates for flats (large envelopes) weighing 4 oz. or less:
| Entry Discount | Saturation | EDDM | High Density Plus | High Density | Basic |
| None | $0.180 | $0.181 | $0.214 | $0.332 | $0.415 |
| DSCF | $0.142 | $0.143 | $0.176 | $0.294 | $0.377 |
| DDU | $0.131 | $0.132 | $0.165 | $0.283 | $0.366 |
For comparison, below are the same postage pricing tables for commercial organizations.
Here is a table of commercial marketing mail postage rates for letters weighing 3.5 oz. or less that qualify for carrier route and automation discounts:
| Entry Discount | Saturation | High Density Plus | High Density | 5-Digit | AADC | Mixed AADC |
| None | $0.244 | $0.275 | $0.365 | $0.372 | $0.407 | $0.433 |
| DSCF | $0.227 | $0.258 | $0.348 | $0.355 | $0.390 | – |
Here is a table of the commercial marketing mail postage rates for flats (large envelopes) weighing 4 oz. or less:
| Entry Discount | Saturation | EDDM | High Density Plus | High Density | Basic |
| None | $0.290 | $0.291 | $0.351 | $0.418 | $0.501 |
| DSCF | $0.252 | $0.253 | $0.313 | $0.380 | $0.463 |
| DDU | $0.241 | $0.242 | $0.302 | $0.369 | $0.452 |
While all the terms in these tables such as “Entry Discount” and “High Density” are likely gibberish to you, you can still look at the differences in price to understand how much postage savings nonprofits receive.
Also, these rates are by no means comprehensive. However, they are the most relevant rates for referencing nonprofit postage rates and a good starting point.
There are many more postage rates for various circumstances. It would be too convoluted to include all of them. To view the most comprehensive rates, you would need to refer to the official USPS documentation.
There’s all kinds of postal programs, discounts, and incentives that are changing all the time. Also, the United States Postal Service is frequently changing prices and regulations, often multiple times a year now.
Unless this is your full-time job, it’s best to leave the details up to a competent mail service provider that you trust like Print Shoppe to help navigate it all.
In order to receive nonprofit postage rates on marketing mail with the USPS, you must receive an authorization letter by filling out PS Form 3624.
To qualify for nonprofit postage rates, you must provide the following information:
The types of organizations who qualify for nonprofit rates include:
It’s important to understand that nonprofits only receive a discount on marketing mail; not first-class mail.
Even if you’ve achieved your nonprofit status with the USPS, it doesn’t mean that all of your marketing mail automatically qualifies for nonprofit rates. It must be aligned with the mission of your organization and there are limits to the amount of advertising and the type of advertising that you can include.
For the most comprehensive explanation of the regulations around qualifying for nonprofit postage rates, refer to Publication 417 – Nonprofit USPS Marketing Mail Eligibility.
If your nonprofit is not taking advantage of direct mail and their deep discounts on postage rates, you’re missing out.
Not only is direct mail much cheaper for nonprofits, it’s also the most effective channel for raising funds from individual donors.
If you’re not at least keeping in contact with previous donors to your organization with direct mail, you’re leaving a lot of money on the table.
Not just money, but the best kind of money for nonprofits: unrestricted individual donor funds.
If you’d like to learn more about how direct mail can transform your nonprofit, schedule a free consultation with one of our USPS Certified Direct Mail Experts today.
Q: What is the main benefit of being an authorized nonprofit mailer with the USPS? A: The primary benefit is a significant discount on postage rates for marketing mail. As the article states, these discounts can be well over 50% compared to commercial rates, making direct mail a much more cost-effective fundraising and communication channel for nonprofits.
Q: How much can a nonprofit save on postage? A: The amount saved depends on the type of mail and the level of presorting. The article highlights that a saturation letter with a DSCF (Destination Sectional Center Facility) entry discount costs a nonprofit just $0.138, which is a 39% discount compared to the commercial rate of $0.227. In other cases, the savings can be even greater.
Q: Does having a 501(c)(3) status with the IRS automatically qualify my organization for nonprofit postage rates? A: No, an IRS 501(c)(3) status is a necessary component but does not automatically grant you nonprofit mailing privileges with the USPS. You must apply separately to the Postal Service and receive authorization.
Q: How does a nonprofit get authorized for the special postage rates? A: To get authorized, your organization must submit PS Form 3624, “Application to Mail at Nonprofit USPS Marketing Mail Prices,” along with supporting documentation, including your formative papers, your IRS exemption letter, and other evidence of your nonprofit status.
Q: What kinds of mail qualify for nonprofit rates? A: Nonprofit rates apply to “Marketing Mail” (formerly known as Standard Mail). This includes things like fundraising appeals, newsletters, and promotional materials. First-class mail, such as invoices, bills, and handwritten or typed letters, does not qualify for these discounted rates.
Q: Are there any restrictions on the content of mail sent with nonprofit rates? A: Yes. The content must be related to your organization’s mission. The USPS has rules about the amount and type of advertising that can be included. For a detailed explanation of these restrictions, you should refer to Publication 417, “Nonprofit USPS Marketing Mail Eligibility.”
Q: Do I have to use a special stamp or indicia for nonprofit mail? A: Yes. Mailpieces must be marked to indicate they are being sent at a nonprofit rate. This can be done through an imprint indicia, a nonprofit precanceled stamp, or as part of a meter impression. The words “NONPROFIT ORGANIZATION,” “NONPROFIT ORG,” or “NONPROFIT” must be clearly visible.
Q: What are the terms like “DSCF” or “Saturation” in the rate tables? A: These terms refer to postal discounts based on how the mail is prepared and where it is entered into the mailstream. “Saturation” and “High Density” refer to the concentration of mail in a specific delivery area, while “DSCF” (Destination Sectional Center Facility) is an “Entry Discount” for mail delivered directly to a regional sorting center, which reduces the USPS’s handling costs. Working with a mail service provider can help you navigate these complex terms and ensure you get the best possible rates.