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Tuesday, October 09, 2007

Selling Ad Space in a Nonprofit Newsletter

Q: My 501c3 nonprofit organization is looking to sell ad space in it’s free newsletter. How should I proceed?

A: First, there are the nonprofit mail rates to consider before going forward. Any and all information you need from the United States Postal Service regarding the rules and regulations about advertising can be downloaded at: http://www.usps.com/tools/calculatepostage/nonprofitpostagerates.htm.

Also, offering outside vendors the option of posting an ad in your publication could serve useful for offsetting the costs of printing. However, please be mindful that unrelated business activity could accrue do to the advertising and subscription model preferred. Please consider the following article on unrelated business income: http://www.irs.gov/charities/article/0,,id=96104,00.html

As always, please seek the advice of your lawyer and accountant before proceeding.