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Nonprofit postage stamps are a special “precanceled” postage stamp used by nonprofit organizations that qualify for nonprofit postage rates. They are only used on nonprofit marketing mail (also known as bulk mail) in place of an indicia.
They are not to be used for first-class mail.
If this sounds confusing, it’s because it is.
Nonprofit stamps are a type of precanceled stamp. Here’s a useful article on the USPS website about precanceled stamps.
Nonprofit stamps, along with all other precanceled stamps, are for decoration. That’s it!
They are used in place of an indicia to make a piece of marketing mail look more personalized and appealing like a first-class letter.
They increase the perceived value of the mail piece allowing you to get the open rates and response rates that a first-class letter might receive but only paying nonprofit marketing mail rates.
Genius, right?
You can purchase precanceled stamps in denominations of $0.05, $0.10, or $0.25 and apply them to your marketing mail letters or flats (large envelopes), subtract the nominal value of the stamps you used from the total postage cost of your campaign and pay the difference in the balance owed to the USPS.
Precanceled stamps do not increase or decrease the cost of a marketing mail campaigns postage cost but it does increase the mail processing and handling cost.
Unlike an indicia which is simply printed on every envelope, you must apply the stamps to each piece of mail, either by machine or by hand, which increases the labor and complexity. Your postage rate may be the same but your printing and mailing cost will increase.
However, the benefit and value increase of sending a stamped piece of mail to your donors can greatly outweigh the increased cost. It make the piece seem much more valuable, endearing, and personalized
You can purchase nonprofit stamps and other precanceled stamps from your local USPS GMF (general mail facility) or you can arrange to have your mail service provider who specialize in nonprofit mailing like us, Print Shoppe, to acquire and use them on your behalf.
It is a very niche and specialized thing. Not every post office or mail service provider can help you with this. Many will look at you bewildered for even asking about nonprofit stamps or precanceled stamps in general. Trust me…
Unless you’re a very large non-profit with your own mailing equipment and department, it’s likely you do not have the expertise on staff to do marketing mail campaigns yourself at all.
You could try to do it yourself, but I would suggest you stub your pinky toe on the fireplace before putting yourself through the pain of navigating and complying with the bureaucracy and regulations of the Unites States Postal Service.
Nonprofit stamps are a wonderful and very unique way to increase the value of your nonprofit marketing mail.
Whether it’s for appeal letters, newsletter, or event invitations, you should certainly try them out. So few people even know about them, much less how to use them, which would really make you stand out from the crowd.
Q: What are nonprofit postage stamps?
A: Nonprofit postage stamps are a special type of “precanceled” stamp used exclusively by qualifying nonprofit organizations for their marketing mail (also known as bulk mail). They are not for use on first-class mail.
Q: Why would a nonprofit use these stamps?
A: The primary reason to use nonprofit stamps is for aesthetic appeal. They are a decorative element used in place of a printed indicia to make a piece of marketing mail look more like a personalized, first-class letter. This can increase the perceived value of the mailpiece, potentially leading to higher open and response rates.
Q: Do nonprofit stamps reduce the cost of postage?
A: No, nonprofit stamps do not decrease the actual postage rate for a marketing mail campaign. They are a substitute for an indicia, and the nonprofit still pays the established nonprofit marketing mail rate. Go to this article “Nonprofit Postage Rates in 2025” to learn more.
Q: How do nonprofit stamps affect the total cost of a mailing campaign?
A: While the postage rate remains the same, using nonprofit stamps can increase the overall cost of a campaign due to increased labor and handling. The stamps must be physically applied to each piece of mail, either by machine or by hand, which is more complex and costly than simply printing an indicia.
Q: How do you pay for postage when using these stamps?
A: You can purchase precanceled stamps in various denominations (e.g., $0.05, $0.10, or $0.25). You then apply these stamps to your mailpieces and subtract the total face value of the stamps used from the total postage cost of the campaign. The remaining balance is paid to the USPS.
Q: Where can a nonprofit organization get these stamps?
A: Nonprofit stamps and other precanceled stamps can be purchased from a local USPS General Mail Facility (GMF). Alternatively, many nonprofits work with specialized mail service providers, who can acquire and use the stamps on their behalf.
Q: Is it easy to do this on my own?
A: It is a very niche and specialized process. The article suggests that unless a nonprofit is very large and has its own mailing department, it is often more practical and less complicated to work with a professional mail service provider who has expertise in navigating the regulations and bureaucracy of the USPS.
Q: Can nonprofit stamps be used on all types of mail?
A: No. They are specifically for nonprofit marketing mail, such as appeal letters, newsletters, or event invitations. They are strictly prohibited for use on first-class mail.
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