Target Analytics Report Finds Online Giving Growing, Integrated Marketing Key to Retention

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Online giving is growing rapidly, and many online donors have a tendency to also give offline, so fundraisers face increasing complexity in managing an integrated direct marketing program that maximizes donor value

Cambridge, MA (Vocus) March 18, 2009

Target Analytics, a Blackbaud (Nasdaq: BLKB) company, today released the 2008 donorCentrics™ Internet Giving Benchmarking Analysis. Key findings from the Analysis indicate that over the past few years, online giving has become an increasingly significant source of new donor acquisition, and integrating online and offline fundraising channels is key to long term success.

"Online giving is growing rapidly, and many online donors have a tendency to also give offline, so fundraisers face increasing complexity in managing an integrated direct marketing program that maximizes donor value," said Rob Harris, Target Analytics' vice president of analytics. "With direct mail, the blueprints for success are well-known, but in this new multi-channel world everything is new and many strategies are still unproven."

The donorCentrics Internet Giving Benchmarking Analysis provides participating organizations the information needed to benchmark their own online fundraising program performance against that of peer organizations and provides a forum for sharing best practices about online fundraising and integrated marketing techniques. In addition, the Analysis highlights key trends in online giving in the context of an overall fundraising program.

Key findings from the 2008 donorCentrics Internet Giving Benchmarking Analysis include:

• Online giving still represents a relatively small portion of donors and revenue at most organizations, but it is growing rapidly and is becoming an important source for new donor acquisition.
• Online donors are younger and have higher incomes than traditional direct mail donors. These are important constituents that nonprofits very much want to attract and keep, given the older average donor age in many files.
• Online donors give larger gifts and, as a result, have a higher overall long-term value than donors to more traditional giving channels like direct mail, but they are less loyal in terms of repeat giving. Higher average gifts mask the lower retention rates of online donors, which may present an opportunity for improvement at many organizations.
• The online giving channel must be an integrated part of an entire direct marketing program because although offline donors do not generally migrate to online giving, online donors do migrate to offline channels in large numbers. In addition, online donors tend to downgrade when they move offline, further evidence that online donors are not cultivated to their full potential.

About Target Analytics
Target Analytics, a Blackbaud company, delivers data-driven, collaborative solutions designed to help nonprofit organizations maximize their fundraising potential. Target Analytics was the first company to bring forward-thinking nonprofit organizations together to establish industry-standard benchmarking and openly discuss successful strategies and practices. For more information, visit
http://www.blackbaud.com/targetanalytics.

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 22,000 organizations -- including University of Arizona Foundation, American Red Cross, Cancer Research UK, The Taft School, Lincoln Center, InTouch Ministries, Tulsa Community Foundation, Ursinus College, Earthjustice, International Fund for Animal Welfare, and the WGBH Educational Foundation -- 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, Blackbaud'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 Canada, the United Kingdom, and Australia. For more information, visit http://www.blackbaud.com.

Media Contact:

Melanie Mathos
Blackbaud
843.654.3307

Source: Target Analytics, a Blackbaud company

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 SEC's website at http://www.sec.gov or upon request from Blackbaud's investor relations department.

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