As non-profit leaders, you are expected to stretch every dollar, negotiating printing costs and obsessing over the “ask.” But in 2026, one of the biggest drains on a nonprofit’s budget isn’t the printing—it’s the $1.93 “Weighted Fee” hiding in your mail carrier’s pouch when a mail piece is returned if you use an ancillary address service.
One of my customers asked why they are receiving so much returned mail and then getting charged for it. It was the same question I had ten years ago when I was working in advancement. I thought my blog for April might be a good opportunity to look at each of the “Ancillary Services” provided by USPS for standard rate mail.
As you read on, you will see that the devil is in the details. Depending on what you hope to get, there is something else you will have to give up. Should you decide to consider any of these options—or if you already use them—you can review your mail campaign plans to decide if, and when, you should use them.
Address Service Requested (The “Forwarder”)
Best for: Donor acquisition where contact is vital.
- What happens: USPS forwards the mail to the new address within the first 12 months after a forwarding report is submitted.
- How you get info: If the piece is undeliverable or the forwarding order has expired (after one year), the physical mail piece is returned to you.
- Cost: See “Cons” bullet below.
- Pros: Maximized Reach; ensures your message actually reaches the recipient.
- Cons: Expensive return fees. If the forwarding order is expired or the address is “Undeliverable as Addressed” (UAA), the piece is returned to you. For Nonprofit Standard Mail, you are charged a “weighted fee” for these returns.
Note: The Weighted Fee exists because USPS essentially charges you to “upgrade” your 18-cent nonprofit letter to a First-Class return trip, plus a penalty for handling. It is calculated as the Single-Piece First-Class price x 2.472.
- Returned Postcard: $0.61 x 2.472 = $1.51
- Returned Letter: $0.78 x 2.472 = $1.93
Return Service Requested (The “Boomerang”)
Best for: High-value mailers or sensitive documents (e.g., tax receipts).
- What happens: The mailing is not delivered or forwarded; it is sent back to you immediately.
- How you get info: The new address or reason for failure is printed directly on the returned mail piece.
- Cost: You pay the same weighted fee per return as detailed above.
- Pros: Cleaner database; physical mail pieces come back quickly with info printed on them.
- Cons: Zero Forwarding. The donor never sees the mail piece if they have moved.
Pro Tip: If you are sending something that may include a premium item, such as stickers, luggage tags or magnets, that could be repurposed instead of discarded, you may wish to consider this option. If sending a tax receipt or other essential information to alumni or donors, first-class postage should be considered.
Change Service Requested (The “Data Only” Option)
Best for: Large-scale newsletters or “low-stakes” updates where budget is the priority.
- What happens: The mail piece is destroyed/recycled by the USPS. It is never delivered or returned.
- How you get info: You receive a separate physical notice with the new address.
- Cost: A flat $0.75 fee per physical notice.
- Pros: Cheapest strategy; avoids expensive “weighted fees.”
- Cons: Waste (you paid to print and mail a piece that was recycled); no physical return.
Pro Tip: This is a good option with bulky items that would have additional costs attributed to them as a first-class piece. Magazines (flats) face an even steeper penalty; a returned flat can cost $4.02 per piece. ($1.63 x 2.472 = $4.02).
The Reality of Modern Mail
The USPS does provide something called “Full-Service ACS” that an organization can qualify for. While it offers free data, the “cost” is often measured in staff hours. In an industry with high turnover, the time spent training a new team member to navigate the Business Customer Gateway can far outweigh the few hundred dollars saved in manual fees.
At the end of the day, the “cheapest” option on paper isn’t always the best in practice. Whether you choose to prioritize reach, data, or savings, knowing these options ensure your budget isn’t unexpectedly impacted after your piece is mailed out.
JHL provides an NCOA report to its customers on every mail project. Updating your CRM with the details in these reports helps to minimize these fees, making the “budget killer” feel more like a “scratch.”
Confused by these codes? Let JHL help you choose the right strategy. Contact our team today!
Dan Krueger
4/1/2026