Nonprofit Federation - Current Issues

THE BUDGET DEBATE

DMA NONPROFIT FEDERATION BANDS TOGETHER WITH OTHER ASSOCIATIONS TO OPPOSE LIMITS ON CHARITABLE TAX DEDUCTIONS
The DMA Nonprofit Federation has joined with the American Society of Association Executives, Association of Fundraising Professionals, Alliance of Nonprofit Mailers and National Catholic Development Conference in opposition to the proposal from the President’s budget that would impose new limits on charitable tax deductions. Letters were sent to the following: Chair and ranking Member of the Senate Finance Committee, Senators Max Baucus and Charles Grassley; Chair and ranking Member of the House Ways and Means Committee, Representatives Charles Rangel and Dave Camp; House Speaker and House Minority Leader, Representatives Nancy Pelosi and John Boehner; Senate Majority Leader and Senate Minority Leader, Senators Harry Reid and Mitch McConnell; Representative Roy Blunt (since he has spoken out against the provision and has been a key supporter of the nonprofit sector); The Philanthropy Caucus Co-Chairs, Representatives John Lewis (who also is Chair of the House Ways and Means Subcommittee on Oversight) and Patrick J. Tiberi; Senators Charles Schumer and Richard Burr **Sample Letter

THE RECORD — NEW JERSEY
ESTATE TAX A KEY FACTOR IN BEQUESTS
The outcome of a dispute among congressional Democrats over the future of the estate tax will have serious implications for nonprofits here and across the country. Impact

POSTAL

USPS Official Organizational Chart

DIRECT
POSTCOM RUNS NUMBERS FOR SUMMER POSTAGE DISCOUNT PROGRAM
Never mind the woodchucks: How much mail would a mailer have to mail for proposed summer postage discounts to take effect? The USPS is mulling temporary postage discounts for high-volume mailers who schedule drops between June 15 and Sept. 15. But mailers would have to reach certain thresholds based on previous activity in order to qualify, and only the pieces above the thresholds would be mailed at the discount rate, according to one proposal. Details such as which mailers will qualify have yet to be hammered out. According to the Direct Marketing Association, only the 4,000 largest standard mail users will qualify for the discounts, which could amount to 20%-30% for mail volumes above thresholds established for each marketer. But the U.S.P.S. itself has said nothing definite about the program including whether it will happen at all. The Postal Service has, however, released one formula which might be used to calculate thresholds. PostCom.org, the Association for Postal Commerce, has plugged hypothetical numbers into the formula. Pencils ready? Crunching the Numbers

DMM ADVISORY (USPS)
MAY 11 PRICE CHANGE UPDATED PRICE LIST
An updated version of Notice 123, the Price List, reflects the final prices effective on May 11. The new list eliminates separate mailing agent and mail owner Confirm subscription prices and provides the nonautomation flats prices for Standard Mail nonmachinable letters over 3.3 ounces. It also contains the Bulk Weight Averaged Nonletter-Size Business Reply Mail (BRM) prices and fees. Details

USPS Announces Incentive Program for Saturation Mailers
This program will allow for a per-piece credit for any organization that meets the USPS eligibly requirements for their new Standard Mail Saturation initiative. There will be two categories, Total Market and Market Specific. According the USPS these markets are defined as:

Total Market — Mailers demonstrate increased volume of Saturation mail letters and flats over the base year for their total market.
Market Specific — Mailers demonstrate increased volume, over the base year, of Saturation Enhanced Carrier Route mail destinating in specific USPS Sectional Center Facility(ies) (SCF). Mailers select in which SCF’s they want to participate.

The actual per-piece credit for Nonprofits would be 2.2 cents per piece on nonprofit letters and 2.4 cents per piece on nonprofit flats. The deadline to apply is Thursday, June 11, 2009.

For more details including how to participate and eligibility requirements, please see the FAQ Sheet.

DMM ADVISORY (USPS)
MAY 11 PRICE CHANGE — FINAL MAILING STANDARDS
We posted our final mailing standards on Postal Explorer to support the May 11 Mailing Services price change. We also posted final standards for Intelligent Mail services and Move Update, in a separate notice. Among the revisions:
— We eliminated the tray-based preparation requirement for First-Class Mail commercial (automation and nonautomation) flats. Mailers will continue to use the current mail preparation options.
— We clarified that Standard Mail nonmachinable letters over 3.3 ounces pay nonautomation flats prices.
— We postponed the Move Update noncompliance charge for Standard Mail until January 4, 2010. Standard Mail still needs to comply by May 2009, however. For questions, please contact Robert Tigner of the Nonprofit Federation at 202.293.9640.
Don’t forget, you can find all of the new prices, postage statements, downloadable price files, and other information to help you prepare for the pricing change here.

POSTAL NEWS
USPS LOST $658 MILLION IN FEBRUARY
The US Postal Service reported a loss of $658 million in February, bringing the year-to-date loss for the fiscal year to $1.8 billion. The agency continued to aggressively cut employee work hours, which were down 12% from the prior year. That translated to a 7.3% decrease in wages and benefits. (The savings are inflated by 3-4% because 2008 was a leap year, so there was an extra weekday compared with 2009.) Revenue, meanwhile, was down 12.8%. The slide in revenue accelerated from January’s 11.8% decline, but that number is also slightly inflated. The sharpest drop was in standard mail, down 22% from February 2008. The decrease meant that there was actually less Standard Mail than First Class in the system for the month, reversing recent trends. First Class Mail volume was down 12.7% compared with last year. Year to date, the USPS has processed about 11 billion fewer pieces of mail than it had at this point a year ago. February

IRS

THE WALL STREET JOURNAL
IRS PROBES NONPROFIT PAY PRACTICES
An Internal Revenue Service official warned nonprofits to be mindful of executive-compensation practices amid public ire over large bonuses at insurer American International Group Inc. and other Wall Street firms that have received federal aid. Lois Lerner, the IRS's director of tax-exempt organizations, told a gathering of lawyers representing charities that scrutiny of nonprofits' pay practices is likely to increase. Nonprofit leaders should be sure to practice due diligence in making sure their executive pay can be justified through data on comparable practices at similar organizations, she said. "If you're not looking, we're looking," Ms. Lerner said at Georgetown University Law Center's Representing & Managing Tax-Exempt Organizations conference. Probe

DO NOT MAIL

DO NOT MAIL INITIATIVES & THEIR POTENTIAL EFFECTS
A Congressional Research Service report for Congress that examines all the state legislation that would create do-not-mail registries and analyzes their potential effects on the economy and environment. View the Report