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The Blackbaud Index Reports 1.4% Increase in Overall Charitable Giving and 20.4% Increase in Online Giving

^{Published on 2010-10-15 09:11:10 - Market Wire}
 

CHARLESTON, S.C.--([ BUSINESS WIRE ])--Blackbaud, Inc. (Nasdaq: [ BLKB ]) today announced the release of a report focused on fundraising trends based on monthly findings from [ The Blackbaud Index ] and featuring commentary from Lynn Edmonds, president of [ LW Robbins ]. Additionally, Blackbaud announced the release of a new specialty index focused on the human services sector.

"Most donors give to five to seven like-minded organizations."

aWith the exception of the months immediately following the Haiti earthquake, the Index shows that human services organizations have struggled to maintain positive year-over-year growth in 2010,a said [ Steve MacLaughlin ], Blackbauda™s director of Internet solutions. aOnline fundraising has been the exception to this trend and has continued to have year-over-year growth for the past 12 consecutive months. As nonprofits enter the final months of the year, it will be important to watch for signs of recovery and stability. The vast majority of online fundraising takes place during the final three months of the year, and year-over-year growth during this timeframe will be very important to organizations.a

The Blackbaud Index of Charitable Giving launched in June 2010 and was followed by the release of The Blackbaud Index of Online Giving in July. These indices are updated on the 15^th of each month and are based on a three-month moving average of year-over-year percent changes in revenue. They represent the most comprehensive and timely sources of charitable giving available. (Read more about the methodology at [ www.blackbaud.com/blackbaudindex ].)

The Blackbaud Index of Charitable Giving

The Blackbaud Index of Charitable Giving reports that overall revenueincreased by1.4% for the 3 months ending August 2010 as compared to the same period in 2009. This was a move back into positive territory from July's 4.5% decline. This trend is based on $2.2 billion in 12-month revenue accumulated from 1,364 nonprofit organizations.

Blackbaud also provides additional data and analysis that reports on organizations by size. Here, the Index found that three-month overall revenue for small organizations (prior year revenue of < $1 million) increased 11.2 percent during the 3 months ending August 2010, while overall revenue at medium organizations (prior year revenue of $1 a" 10 million) decreased 1.9 percent, and overall revenue at large organizations (prior year revenue > $10 million) decreased 0.2% percent during the same period.

The newly released Blackbaud Index of Charitable Giving for human services organizations reports an overall revenuedecrease of19.3% for the 3 months ending August 2010 as compared to the same period in 2009. This trend is based on $640 million in 12-month revenue from 431 human services organizations.

The Blackbaud Index of Online Giving

The Blackbaud Index of Online Giving reports that overall revenueincreased by20.4% for the 3 months ending August 2010 as compared to the same period in 2009. This was an increase over July's positive trend of 12.4% growth. This trend is based on $407 million in 12-month online revenue from 1,676 organizations.

The Index found that three-month online revenue for small organizations (prior year revenue of < $1 million) increased 28.7 percent in August, while revenue at medium organizations (prior year revenue of $1 a" 10 million) increased 14.3 percent, and revenue at large organizations (prior year revenue > $10 million) increased 23 percent.

The Blackbaud Index of Online Giving reports that human services organizations had an overall revenueincrease of20.5% for the 3 months ending August 2010 as compared to the same period in 2009. This trend is based on $48 million in 12-month revenue from 511 human services organizations and was an increase from July's 10.3% growth trend.

Lynn Edmonds, president of LW Robbins, a direct response fundraising agency serving national and regional nonprofits, provided commentary on The Blackbaud Index in a [ report ] that accompanied this montha™s update. aThe summer months were particularly difficult as the economy took a hit and peoplea™s attention was brought back to the economy,a said Edmonds. aThe economy was starting to show some good signs, and then in May through July, the market dropped thousands of points, people stopped spending, and unemployment hit a high; that particular period was very difficult. The economy is bouncing back a little now. People who have some discretionary income will hopefully support their charities in the final months of 2010.a

According to Edmonds, online giving in general (without emergency giving) is a small percent of overall giving, but is becoming a channel that donors are becoming more comfortable with. aFor a while, it was almost optional, but now, it is essential,a she said. aMost donors give to five to seven like-minded organizations.a She commented that organizations need to stay in front of the donor in multiple channels to keep their awareness and brand front and center.

Mark Crozet, Habitat for Humanity Internationala™s senior vice president of resource development reported that the organization did see a spike in revenue earlier this year, largely around its Haiti response. aWe havena™t seen the dip over the last few months although revenue has flattened,a he said. aIn direct mail, wea™re still up over last year at this time, although our corporate and major gift numbers are definitely down. Wea™re hoping year-end giving reverses that trend.a

Visit [ www.blackbaud.com/blackbaudindex ] for further data on The Blackbaud Index, for monthly updates on the 15^th, to view a [ video about benchmarking and metrics ], and to download the latest report.

About Blackbaud

Blackbaud is the leading global provider of software and services designed specifically for nonprofit organizations, enabling them to improve operational efficiency, build strong relationships, and raise more money to support their missions. Approximately 24,000 organizations a" including University of Arizona Foundation, American Red Cross, Cancer Research UK, The Taft School, Lincoln Center, Tulsa Community Foundation, Ursinus College, Earthjustice, International Fund for Animal Welfare, and the WGBH Educational Foundation a" use one or more Blackbaud products and services for fundraising, constituent relationship management, financial management, website management, direct marketing, education administration, ticketing, business intelligence, prospect research, consulting, and analytics. Since 1981, Blackbauda™s sole focus and expertise has been partnering with nonprofits and providing them the solutions they need to make a difference in their local communities and worldwide. Headquartered in the United States, Blackbaud also has operations in Australia, Canada, Hong Kong, the Netherlands, and the United Kingdom. For more information, visit [ www.blackbaud.com ].

Forward-looking Statements

Except for historical information, all of the statements, expectations, and assumptions contained in this news release are forward-looking statements that involve a number of risks and uncertainties. Although Blackbaud attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the following: general economic risks; uncertainty regarding increased business and renewals from existing customers; continued success in sales growth; management of integration of acquired companies and other risks associated with acquisitions; risks associated with successful implementation of multiple integrated software products; the ability to attract and retain key personnel; risks related to our dividend policy and share repurchase program, including potential limitations on our ability to grow and the possibility that we might discontinue payment of dividends; risks relating to restrictions imposed by the credit facility; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organization; technological changes that make our products and services less competitive; and the other risk factors set forth from time to time in the SEC filings for Blackbaud, copies of which are available free of charge at the SECa™s website at [ www.sec.gov ] or upon request from Blackbaud's investor relations department. All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.

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