Under statutory restrictions in Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM®), subsection 703.1.6.11, products that are mailed at the Nonprofit USPS Marketing Mail® prices must meet at least one of three exceptions. A low-cost item is one of the exceptions referenced in the Internal Revenue Code. Each year, the Internal Revenue Service determines the value of a low-cost item — the actual cost to the authorized nonprofit organization — and adjusts the value for the cost of living. For 2018, the value of a low-cost item is $10.90 or less.
Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM)
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700 Special Standards
703 Nonprofit USPS Marketing Mail and Other Unique Eligibility
1.0 Nonprofit USPS Marketing Mail
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1.6 Eligible and Ineligible Matter
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1.6.11 Products Mailable at Nonprofit USPS Marketing Mail Prices
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[Revise item a. to read as follows:]
a. Low-cost items within the meaning of 26 USC 513(h)(2), Internal Revenue Code. At the beginning of each calendar year, the value of low-cost items is adjusted for cost of living. Effective January 1, 2018, the cost of such items cannot exceed $10.90. This cost is the cost to the authorized organization that mails the items or on whose behalf the items are mailed.
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We will incorporate this revision into the January 21, 2018, update of the online DMM, which is available via Postal Explorer® at pe.usps.com.
— Product Classification, Marketing, 12-7-17
