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Despite Global Economic Uncertainty, Nonprofits Are Optimistic Heading into 2012

^{Published on 2011-10-19 09:35:57 - Market Wire}
 

CHARLESTON, S.C.--([ BUSINESS WIRE ])--Blackbaud, Inc. (Nasdaq: [ BLKB ]) today announced the release of the 2011 Global State of the Nonprofit Industry report, featuring survey results from 2200 international respondents covering nonprofit general operations, fundraising, technology and Internet usage, and impact reporting and board performance. The results were also released today at the International Fundraising Congress (IFC) in the Netherlands.

"Nonprofits need to do more to integrate the online with their offline and their fundraising with their advocacy and campaigning. Donors wantone coherent relationship with the organizations they support, not multiple relationships with half a dozen different teams."

• To download the complete report, visit [ www.blackbaud.com/industryanalysis ].

Key findings include:

• There is a growing sense of optimism in the global nonprofit sector regarding growth in staffing and earned and charitable income in 2012. Organizations also anticipate an increased demand for services and increased expenditures.
  
  aThere is a very real sense of optimism growing in the sector,a said Andrew Watt, president and CEO, Association of Fundraising Professionals (AFP), who provided commentary in the report. aRising giving levels are what is driving the sense of optimism and, in turn, anticipated growth in staffing. Part of that optimism is the nature of our missionsa"nonprofits work to create change and inspire the public. We tend to be optimists, but with a healthy dose of realism.a

• Most organizations continue to leverage traditional channels, even while they are increasingly using new interactive channels. More than half of the organizations surveyed raise funds online and in most countries have shown growth in percentage raised online from 2010 to 2011. While most respondents use social media tools, they are directing their efforts towards potential donors, not communications with other constituent groups.
  
  aDirect mail fundraising is at the core of most nonprofits,a said Holly Ross, executive director of the Nonprofit Technology Network (NTEN), who provided commentary in the report. aEntire institutions, processes and support systems have been built to support the direct mail empire in our sector. It's baked into our DNA, and changing that is tough.
  
  aDirect mail has been around for a century now. By comparison, this online stuff is still really new. Nonprofits are still experimenting, finding what does work, and our donors are still getting used to the idea of giving online. So at the end of the day, nonprofits aren't replicating the success of offline fundraising, but they are defining success in a new venue.a

• Nonprofit organizations throughout the world feel that managing relationships with supporters, new donor recruitment, and impact reporting arecritical; however,they do not feel they are doing a great job with these practices.
  
  aThe single biggest challenge with supporter management is campaign integration,a said Adrian Sargeant, fundraising professor and consultant, who provided commentary in the report. aNonprofits need to do more to integrate the online with their offline and their fundraising with their advocacy and campaigning. Donors wantone coherent relationship with the organizations they support, not multiple relationships with half a dozen different teams.a
  
  Regarding donor recruitment, Sargeant said that smarter acquisition is the key. aWe should move away from short term measures of acquisition performance such as the cost per donor, response rate, average donation etc. and focus on spending a little more to recruit in donors that will have a higher lifetime value.a
  
  Lastly, when it comes to impact reporting, he advises nonprofits to look to their peer organizations to create their own dashboards of relevant performance metrics to provide stakeholders with a rounded picture of organizational impact.

About the survey

The State of the Nonprofit Industry survey is disseminated via a unique collaborative worldwide network of nonprofit country institutes, associations and NGOs including: L'Association Franaise des Fundraisers, Centro Studi Philanthropy, Fundraising Institute of New Zealand (FINZ), The Resource Alliance, and Deutscher Fundraising Verband. This yeara™s SONI survey was fielded in June, 2011 and reports on data from 2200 respondents in the UK, France, Germany, Holland, Italy, USA, Canada, Australia and New Zealand. Conducted annually for seven of the past eight years, the SONI Survey uncovers the degree to which nonprofits anticipate changes in their organizations this year and next. The survey report provides an overview of information that can help nonprofits assess their operations and compare their performance with that of other nonprofit organizations while offering valuable commentary from experts in the field. To download the complete report, visit [ www.blackbaud.com/industryanalysis ].

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 The American Red Cross, Cancer Research UK, Earthjustice, International Fund for Animal Welfare, Lincoln Center, The Salvation Army, The Taft School, Tulsa Community Foundation, Ursinus College, the WGBH Educational Foundation, and Yale University 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.