Re: TAG

[Neil Frank <nfrank@mindspring.com>]

At 09:03 AM 5/14/2002 -0400, Karen Randall wrote:
>>    - what did Mary use for 1st class postage?
>
>I'm not sure what you mean.

I seem to remember an indicia on the envelope and not a stamp. I did not
know if she payed 1st class per item, or got a discount of some sort
because of the quantity involved?
>
>>    - is there something for non-profit organizations that similar or even
>> better than "periodical rate"
>
>Periodical rate covers non-profit organizations as well as for profit.  The
>amount you pay is based on the percentage of paid advertising in the
>magazine.  For non-profit periodical status, you can have almost no paid
>advertising.  The next category is up to 25% paid advertising, and I don't
>think we'd ever have more than that. Above 25%, you can still use periodical
>rate, but they charge you commensurately more for a higher percentage of
>advertising.

I agree that it is complicated!! 

>
>>    - what, if anything, does the printer provide? that will eliminate the
>> AGA hassle?
>
>The printer does nothing as far a mailing is concerned.  (although for $20
>extra they deliver the magazines to the mailer) We have an outside mailing
>company, Step Direct, that does the actual mailing. 


The reason I asked is that when I was doing TAG, the printer (or its
subsidiary mailer) had its own indicia. That eliminated the need to
continue our own bulk printing permit. 

>
>>    - for each of the above alternatives, what are the differences in the
>> per issue or annual cost?
>
>David can fill us in on the postage costs for both 1st class and bulk.  I
>don't have the records for either.  I haven't been able to get a firm number
>for the periodical rate, because it is set based on ratio of advertising
>pages, and we don't have those yet.

For planning purposes, why not assume "up to 25%," since you say we will
probably not ever get above that.

>  My understanding is that as long as the
>ratio remains at or below 25% advertising, the rates are slightly higer than
>bulk.  The difference is that you get ALMOST the same service as 1st class.
>I guess it can be bumped in a crunch period, but it definitely gets higher
>priority than bulk mail, which is the last to go.

Periodical rate (< 25%) sounds like a good deal, as long as you can figure
out how to deal with the paperwork.

>> i.e. "adopt a method of bookkeeping that is available for postal
>inspection
>> that clearly shows that payment or promises to pay have been made by the
>> persons the publishers claim as subscribers to their publications."  



> You have to account for all magazines that are sent out that are
>NOT paid for by subscription, and those sold over the counter one way or
>another.  

This can be tricky. I wonder why they need to know that. Clearly if AGA
prints more than they mail, and does not sell all they print, there will be
a variable number left over. I really wonder why they need to know it.
[Maybe to be sure you are not just mailing out advertising to sell stuff.]
Sounds like you have already thought this through, but what about using a
fixed number of mailouts which are not paid, and assume all the others will
be sold (over counter or thru AGA store)

They also want access to all financial records at the same site.
>They actually come out and do an on-site audit annually. (it's not a
>surprise audit like a bank audit... they set up an appointment, and we would
>have time to gather the information into one place)

Doesnt the USPS have better things to do. If they audit every 1000 member
organization, I am surprised that they did not go broke long ago.

>
>As Erik mentioned, we'd also have to change our membership form and masthead
>to correspond with their regulations. 

That is probably the easiest part.

> The biggest change is that we have to
>specifically state what portion of dues goes to the "subscription" for the
>magazine, and be able to prove that these funds are actually used in this
>way.  The membership form and masthead would need to be changed to reflect
>this.

I still think a reasonable accounting of the numbers would be sufficient.
As long as AGA is staying within the spirit of the rules, I cant see why it
would bother the USPS if we adopt a reasonable approach to record keeping.
There own regs say: "adopt a method of bookkeeping that is available for
postal inspection that clearly shows that payment or promises to pay have
been made by the persons the publishers claim as subscribers to their
publications."   I really believe this is beauocratize to say that if we
are a legitimate organization with dues paying members and we are not just
sending out advertising at the expense of the USPS, then it will be fine
with them. 

Use this advice as you see fit and make a decision that works for you.

Neil

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