Hi, IfOnly, and welcome to WriteWords
I'm not sure I have an answer to your question. Am I right in assuming the newsletter is something you pass around a small group of fellow writers in a writing group? While strictly speaking any stories in it would be considered 'published' and thud ineligable for a competition, if there is only a very small distribution and is not online for anyone to google, then you might get away with it. There must be members of your group who have submitted stories for competitions which have not been placed, and so they are looking for somewhere else to published them? In such cases then your newsletter would seem to be the ideal place?
- NaomiM