5-2.3 Commercial Mailing Agent | Postal Explorer

5-2.3 Commercial Mailing Agent

A commercial mailing agent (or other unauthorized entity) may enter mail at nonprofit prices for an authorized organization, if the organization can show that the relationship is a legitimate principal-agent relationship.

If a question arises whether a mailing is eligible for nonprofit prices, the authorized organization must provide, on request, documentation of the relationship that includes all contracts between the organization and other parties to the mailing and any other information requested by the Postal Service.

Examples: Acceptable Principal-Agent Relationships

Authorized organization O hires commercial mailing agent C at a fixed fee to print and mail organization O’s newsletter at nonprofit prices. Organization O’s name and return address appear on the envelope containing the newsletter. The envelope shows agent C’s permit imprint number (identified with “Nonprofit Organization,” “U.S. Postage Paid,” etc.). This arrangement is considered an acceptable principal-agent relationship.
Authorized university U enters into an agreement with agent A (a for-profit company) to handle university U’s conference. Agent A’s sole function is to plan and manage the conference. For this function, agent A receives $2,500 (a fixed payment that is consistent with the amount agents typically receive for such services in that city). According to the agreement, agent A enters conference-related mailings for university U at nonprofit prices. This arrangement is considered an acceptable principal-agent relationship.