Deems a conflict of interest creating a presumption against eligibility for use of such non-profit postage rates any contractual relationship between a qualified nonprofit organization with a commercial entity for solicitation of funds for or on behalf of the nonprofit organization, or for counseling services for the solicitation of funds. Exempts from this rule any such contract if the parties act severally and independently in forming it, or it is approved in advance: (1) by the governing body of the nonprofit organization, the controlling voting percentage of which is composed of persons other than officers, board members, principals, or employees of the commercial entity; or (2) by other persons authorized by such governing body to act on its behalf.
Allows a rebuttal of the presumption against eligibility even if a conflict of interest is found to exist, if it can be demonstrated to the Postal Service that the contract meets certain standards of the Internal Revenue Service under the Internal Revenue Code establishing a rebuttable presumption that a transaction is not an excess benefit transaction.
Introduced in Senate
Read twice and referred to the Committee on Governmental Affairs.
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