Postal costs top mailers' agenda.

With 14 different "Do Not Mail" or "Do Not Contact" bills introduced last year, there is a recurring theme in legislation around the country. But only two measures appear likely to be passed by the states, according to Charles Nave, regulatory counsel to the DMA Nonprofit Federation, which recently held its 13th annual Critical Issues conference in Washington, D.C.

Legislation in Hawaii will require charities to be registered by the end of this year. The measure, passed by the state Senate and now in the state's House, is almost certain to pass, said Nave, who also is counsel to American Charities For Reasonable Fundraising Regulation (ACFRC).

Annual reports, including federal Form 990s and audits if revenue is $100,000 or more, will be due when the 990 is filed with the Internal Revenue Service ORS), Nave said. Hawaii would institute the highest filing fee in the country ($750) if gross revenue is $5 million or more. Exempt from the filing would be charities that receive $25,000 or less in gross revenues and religious organizations.

The only other state legislation Nave said has a chance of passing this year is in Oklahoma, where the state's Senate passed S.B. 1955, which would have minor changes for charities and professional fundraising counsels. The measure would require a $25,000 bond instead of a $2,500 bond, annual filing of financial statements including balance sheet and fundraising figures, as well as annual criminal background checks on officers, directors or anyone with a controlling interest in the business, or anyone the fundraisers employs to solicit.

Nave said the bill is in a "strange" House committee, one that he's not sure if the bill will die in or be approved.

If Do Not Mail legislation were passed in states, mailers would have to remove names of individuals or face fines and other penalties. Most proposals exclude charities from the law--mainly focusing on "commercial" solicitations--but not all.

According to the DMA, states have been driven to introduce this legislation by organizations both for-profit and nonprofit and consumer groups, such as StopTheJunkMail.com, Greendimes.com, 41Pounds.org, Earth911.org and JunkMailFreeze.com, among others.

The DMA's Commitment to Consumer Choice (CCC) adds new ethics requirements for all DMA members, including nonprofits, approved by the Board of Directors last year. The CCC requires a "higher level of self-regulation by members" and compliance monitored by the DMA's Ethics Committees and its Board of Directors to ensure that members remain in good standing.

NATIONAL AUTHORIZATION NUMBER

A new national authorization number, tentatively scheduled to be introduced this summer, will replace the primary and additional office authorizations required to mail at Nonprofit Standard Mail prices.

The national number will simplify the process for the issuance and administration of an authorization to mail at the nonprofit rates, allowing authorized nonprofits to enter a mailing at that rate at any post office, according to Jerry Lease, classification specialist, mailing standards, United States Postal Service (USPS).

The PostalOne! System will provide a seven-digit national number for nonprofits, which will no longer have to submit a Form 3623 for nonprofit privileges at additional post offices, he said.

The primary authorization number issued to existing nonprofits will become the national number for the organization. Prior to implementing the new system, USPS will send a letter to the address of record for each mailer authorized at additional offices to enter Nonprofit Standard Mall, reminding them of the new national number, according to Lease.

The new process is supported by the PostalOne! System, Lease said, but there are still a few post offices not in the system. To enter Nonprofit Standard Mail at those locations, he said mailers must submit an updated version of Form 3623, Confirmation of Authorization. Nonprofits also will be able to apply for privileges online after obtaining a PostalOne! ID and password. Organizations can apply for PostalOne! Accounts at their local Business Mail Entry (BME) office.

Introduced in 1951, Nonprofit Standard Mail required an organization to submit an application (Form 3624) to mail at each post office where they wanted to mail at Nonprofit Standard rates. The Postal Service introduced "additional mailing office" authorization during the 1980s, allowing nonprofits already authorized to enter the Nonprofit Standard Mail to submit an application to mail at another post office without submitting another application.

The additional office revocation was subject to revocation if not used at least once every two years and each additional authorization was issued its own seven-digit USPS number.