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      The Blackbaud Index: The Go-To Resource for Charitable and Online Giving Trends

      The Blackbaud Index reported that overall charitable giving to nonprofits increased 2.2 percent while online giving increased 10.3 percent for the three months ending August 2018 compared to the same period in 2017.

      The Blackbaud Index provides the most up-to-date information on charitable giving today. Tracking approximately $23 billion in US-based charitable giving, the Index is updated on the first of each month (or the next business day) and is based on a three-month moving average of year-over-year percent change. Featuring overall and online giving, the Index can be viewed by size and subsets of the nonprofit industry via an interactive online chart. The Index also features a fundraising benchmark calculator that allows users to easily chart their own results against the Index and historical data to provide a fuller view of charitable giving.

      To access The Blackbaud Index, subscribe to monthly email alerts, read about the methodology, or access special reports, visit www.blackbaud.com/blackbaudindex.

      Media Contact
      Nicole McGougan
      Public Relations Manager
      843.654.3307
      nicole.mcgougan@blackbaud.com 

      About Blackbaud
      Blackbaud (NASDAQ: BLKB) is the world’s leading cloud software company powering social good. Serving the entire social good community—nonprofits, foundations, companies, education institutions, healthcare organizations and individual change agents—Blackbaud connects and empowers organizations to increase their impact through cloud software, services, expertise, and data intelligence. The Blackbaud portfolio is tailored to the unique needs of vertical markets, with solutions for fundraising and CRM, marketing, advocacy, peer-to-peer fundraising, corporate social responsibility, school management, ticketing, grantmaking, financial management, payment processing, and analytics. Serving the industry for more than three decades, Blackbaud is headquartered in Charleston, South Carolina and has operations in the United States, Australia, Canada and the United Kingdom. For more information, visit www.blackbaud.com.

      Blackbaud’s Cloud Fund Accounting Software Helps Organizations Improve Financial Transparency, Save Time and Effectively Manage Their Programs

      New study and nonprofit finance executives commend the value of Financial Edge NXT
      for performance, scalability, security and more

      Charleston, S.C. (September 25, 2018)Blackbaud (NASDAQ: BLKB), the world’s leading cloud software company powering social good, today announced that a Nucleus Research ROI Case Study of StarCare Specialty Health System found that by deploying Financial Edge NXT®, Blackbaud’s top-rated cloud fund accounting software, an organization could experience an annual return on investment of 102 percent and average annual benefit of $446,680 within one year.

      StarCare, based in Lubbock, Texas, deployed Financial Edge NXT to improve the efficiency of its accounting and finance department and was able to increase employee productivity, improve data quality and eliminate costs associated with its legacy system. The organization’s fiscal team could more easily prepare for audits, reconcile accounts, manage transactions, and produce reports and key information for frontline managers, as well as reduce its reliance on technical staff in the IT department for daily reporting and maintenance.

      “No other cloud fund accounting software available to the social good community offers the intelligence, security, scalability, performance and user experience that Financial Edge NXT delivers,” said Mary Beth Westmoreland, chief technology officer at Blackbaud. “We launched Financial Edge NXT with the goal of providing our customers with unparalleled functionality—from detailed, multi-scenario budgeting to fast, flexible reporting that enables timely, data-driven decisions. We’re proud to share today that nonprofit organizations have now used Financial Edge NXT to manage financials for more than one million individual projects.”

      The company also reported strong satisfaction rates with Financial Edge NXT among nonprofit finance executives seeking to manage financial reporting, monitor and track program success and support fundraising efforts in a single solution:

      • “Ultimately, we decided to partner with Blackbaud because they demonstrated the most detailed consideration of our needs throughout the selection process. They really dove in to understand our operating model and reporting requirements in a way that made us feel they were dedicated to ensuring our success on Blackbaud Financial Edge NXT.” —Jennifer Holleran, Assistant Director of Business Operations, Cornell Cooperative Extension
      • “As a Federally Qualified Health Center, the key to our financial staff’s efficiency is effective reporting for a large group of funders and other stakeholders. I’ve always seen this as the strength of Financial Edge, and now Financial Edge NXT simplifies the reporting process and allows us to easily analyze details, so we’re confident about the data.” —Chris Dons, CFO, Lawndale Christian Health Center
      • “Blackbaud is dedicated to giving their customers the best software tools in the industry, and this is evident with Financial Edge NXT. I can customize my reports to mirror grant or government reports, which makes my job easier. What used to take me days to gather information, takes me only minutes with Financial Edge NXT reporting. I am confident that my data is secure, software is error free and Blackbaud will provide the best service possible to their customers.” —Jennifer Johnson, CFO, Senior Resource Association
      • “Our Board was very passionate about not only having our finger on the pulse of our funds but also being accountable and transparent with the funds that we raise; Financial Edge NXT completely supports us in that. I see Blackbaud as the base of this Foundation—giving us all the tools, structure and transparency that we need to show our donors, so we can continue to grow and support a healthy, active community.” —Krista Linklater Executive Director, St. Mary’s Memorial Hospital Foundation
      • “We were driven for a scalable solution that would save time, increase accuracy and improve financial transparency within the organization. Financial Edge NXT’s flexible account setup and tracking options allow us to automate otherwise manual reporting processes while maintaining a simple account structure. This in turn allows managers to more effectively manage their program data, and ultimately helps us deliver more impactful programs.” —Adam Pomerantz, CFO, WINGS for Kids

      This year, Financial Edge NXT was a recipient of the 2018 Top Rated Badge for Accounting, Tax and Budgeting Software by TrustRadius, a trusted review site for business technology, and received a Five-Star rating from CPA Practice Advisor, a definitive resource for information to tax and accounting professionals in public practice.

      For more information about Financial Edge NXT, go to www.blackbaud.com/nonprofit-accounting-software/financial-edge-nxt. To download the Nucleus Research ROI Case Study of StarCare Specialty Health System, go to https://nonprofitaccounting.blackbaud.com/assets/starcare-roi.

      Click to Tweet: #Nonprofit finance execs commend the value of @Blackbaud Financial Edge NXT for performance, scalability, security and more! Read what they have to say: http://bit.ly/2oYVZip

      About Blackbaud
      Blackbaud (NASDAQ: BLKB) is the world’s leading cloud software company powering social good. Serving the entire social good community—nonprofits, foundations, companies, education institutions, healthcare organizations and individual change agents—Blackbaud connects and empowers organizations to increase their impact through cloud software, services, expertise and data intelligence. The Blackbaud portfolio is tailored to the unique needs of vertical markets, with solutions for fundraising and CRM, marketing, advocacy, peer-to-peer fundraising, corporate social responsibility, school management, ticketing, grantmaking, financial management, payment processing, and analytics. Serving the industry for more than three decades, Blackbaud is headquartered in Charleston, South Carolina and has operations in the United States, Australia, Canada and the United Kingdom. For more information, visit www.blackbaud.com.

      Blackbaud Media Contact
      Nicole McGougan
      Public Relations Manager
      843.654.3307
      media@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, including statements regarding expected benefits of products and product features. 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 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.

      The Blackbaud Index: The Go-To Resource for Charitable and Online Giving Trends

      The Blackbaud Index reported that overall charitable giving to nonprofits increased 0.3 percent while online giving increased 11.4 percent for the three months ending July 2018 compared to the same period in 2017.

      The Blackbaud Index provides the most up-to-date information on charitable giving today. Tracking approximately $23 billion in US-based charitable giving, the Index is updated on the first of each month (or the next business day) and is based on a three-month moving average of year-over-year percent change. Featuring overall and online giving, the Index can be viewed by size and subsets of the nonprofit industry via an interactive online chart. The Index also features a fundraising benchmark calculator that allows users to easily chart their own results against the Index and historical data to provide a fuller view of charitable giving.

      To access The Blackbaud Index, subscribe to monthly email alerts, read about the methodology, or access special reports, visit www.blackbaud.com/blackbaudindex. 

      Media Contact
      Nicole McGougan
      Public Relations Manager
      843.654.3307
      nicole.mcgougan@blackbaud.com 

      About Blackbaud
      Blackbaud (NASDAQ: BLKB) is the world’s leading cloud software company powering social good. Serving the entire social good community—nonprofits, foundations, corporations, education institutions, healthcare institutions and individual change agents—Blackbaud connects and empowers organizations to increase their impact through software, services, expertise, and data intelligence. The Blackbaud portfolio is tailored to the unique needs of vertical markets, with solutions for fundraising and CRM, marketing, advocacy, peer-to-peer fundraising, corporate social responsibility, school management, ticketing, grantmaking, financial management, payment processing, and analytics. Serving the industry for more than three decades, Blackbaud is headquartered in Charleston, South Carolina and has operations in the United States, Australia, Canada and the United Kingdom. For more information, visit www.blackbaud.com.

      Healthcare Organization Yields Impressive Fundraising Results Using Blackbaud Raiser’s Edge NXT with Grateful Patient Solution

      Independent study shows how a healthcare organization can more efficiently identify patients who
      want to give back as thanks for exceptional care

      Charleston, S.C. (August 28, 2018)Blackbaud (NASDAQ: BLKB) today announced the results of a commissioned Total Economic Impact™ (TEI)1 study conducted by Forrester Consulting, which examines the return on investment that a healthcare organization may experience by deploying Blackbaud’s smart cloud fundraising and relationship management solution along with its wealth and asset screening solution. Forrester found that over a three-year period, a healthcare organization can achieve a 90 percent return on investment, increase the volume of grateful patient gifts raised by gift officers by 40 percent and increase the average size of grateful patient donations by 28 percent.

      To evaluate the economic impact, Forrester took a comprehensive approach to its study, interviewing Blackbaud subject matter experts, Forrester analysts and a hospital foundation (Inova Health Foundation) currently using Blackbaud Raiser’s Edge NXT™ and Grateful Patient Solution. Using the data, Forrester analysts constructed a financial model representative of the interview using its TEI methodology to identify the cost, benefit, flexibility and risk factors that affect the investment decision.

      “For over 35 years, Blackbaud’s innovation, industry expertise and value-added services have helped healthcare organizations excel in fundraising and constituent relationship management,” said Page Bullington, president and general manager of Blackbaud Healthcare Solutions. “The ROI that Blackbaud Raiser’s Edge NXT and Grateful Patient Solution brings Inova goes further than its financial results. Our innovations allow Inova to learn more about its constituents and leverage the combination of better data and enhanced functionality to focus its fundraising efforts, ultimately increasing its efficiency and effectiveness.”

      Inova Health Foundation (“Inova”), based in Falls Church, Va., is part of the Inova Health System, a large nonprofit health organization that employs over 17,000 staff throughout five hospitals, 25 assisted living and long-term care facilities, 26 primary care locations and a variety of other health-related services. Previously struggling to identify and target ideal donor prospects, Inova turned to Blackbaud to enhance the technology powering its research, direct mail and gift officer outreach.

      Blackbaud Raiser’s Edge NXT and Grateful Patient Solution helped Inova identify grateful patient prospects with high giving potential. “It would be impossible to identify the right patients to talk to without Blackbaud because of the volume coming into our system every day,” said Paige Moses, associate vice president, Foundation Services at Inova Health Foundation. “We’ve been able to set up a process that can handle the volume of constituents Inova sees every day with a very lean staff. Before, we couldn’t get through this volume of constituents.”

      After deploying Raiser’s Edge NXT with the Grateful Patient Solution, Inova experienced:

      • Raised an additional $429,511 from grateful patients. Gift officers leveraged better data and technology to target prospects, increasing the number of gifts from grateful patients by 40 percent and the average gift value by 28 percent.
      • Increased direct mail donations, raising an additional $142,300. Inova built highly-targeted direct mail efforts to grateful patients based on data from daily screenings and quarterly modeling.
      • Saved more than $113,000 per year. By replacing legacy solutions and upgrading to the cloud solution, Inova has also been able to greatly improve its efficiencies and productivity.
      • Recaptured $32,000 of increased foundation employee productivity annually. Foundation staff streamlined regular processes to save over 2,000 hours annually with Blackbaud’s solutions.

      “Being able to establish a direct mail program that drove over 800 donors in one year versus a former program that only drove 78 donors in 2015 and 105 donors in 2016 is a huge win,” said Jeff Johnson, senior director of Inova Health Foundation.

      Learn how Inova increased patient donations while improving productivity using the Blackbaud solutions by downloading the full study at https://hello.blackbaud.com/12227_Healthcare_Forrester_Report.html. Hosted by Blackbaud, join Inova Health Foundation and guest Forrester on September 19 at 2 p.m. ET to learn more about this report in webinar form.

      Click to tweet: .@InovaHealth increased its volume of grateful patient gifts by 40% with @blackbaud’s help – learn how! http://bit.ly/2wt0LYB

      About Blackbaud
      Blackbaud (NASDAQ: BLKB) is the world’s leading cloud software company powering social good. Serving the entire social good community—nonprofits, foundations, companies, education institutions, healthcare organizations and individual change agents—Blackbaud connects and empowers organizations to increase their impact through cloud software, services, expertise, and data intelligence. The Blackbaud portfolio is tailored to the unique needs of vertical markets, with solutions for fundraising and CRM, marketing, advocacy, peer-to-peer fundraising, corporate social responsibility, school management, ticketing, grantmaking, financial management, payment processing, and analytics. Serving the industry for more than three decades, Blackbaud is headquartered in Charleston, South Carolina and has operations in the United States, Australia, Canada and the United Kingdom. For more information, visit www.blackbaud.com.

      Blackbaud Media Contact
      Nicole McGougan
      Public Relations Manager
      843.654.3307
      media@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 SEC’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.

      The Blackbaud Index: The Go-To Resource for Charitable and Online Giving Trends

      The Blackbaud Index reported that overall charitable giving to nonprofits increased 0.7 percent while online giving increased 8.1 percent for the three months ending June 2018 compared to the same period in 2017.

      The Blackbaud Index provides the most up-to-date information on charitable giving today. Tracking approximately $23 billion in US-based charitable giving, the Index is updated on the first of each month (or the next business day) and is based on a three-month moving average of year-over-year percent change. Featuring overall and online giving, the Index can be viewed by size and subsets of the nonprofit industry via an interactive online chart. The Index also features a fundraising benchmark calculator that allows users to easily chart their own results against the Index and historical data to provide a fuller view of charitable giving.

      To access The Blackbaud Index, subscribe to monthly email alerts, read about the methodology, or access special reports, visit www.blackbaud.com/blackbaudindex. 

      Media Contact
      Nicole McGougan
      Public Relations Manager
      843.654.3307
      nicole.mcgougan@blackbaud.com

      About Blackbaud
      Blackbaud (NASDAQ: BLKB) is the world’s leading cloud software company powering social good. Serving the entire social good community—nonprofits, foundations, companies, education institutions, healthcare organizations and individual change agents—Blackbaud connects and empowers organizations to increase their impact through cloud software, services, expertise, and data intelligence. The Blackbaud portfolio is tailored to the unique needs of vertical markets, with solutions for fundraising and CRM, marketing, advocacy, peer-to-peer fundraising, corporate social responsibility, school management, ticketing, grantmaking, financial management, payment processing, and analytics. Serving the industry for more than three decades, Blackbaud is headquartered in Charleston, South Carolina and has operations in the United States, Australia, Canada and the United Kingdom. For more information, visit www.blackbaud.com.

      Blackbaud Announces 2018 Second Quarter Results

      Second Quarter Recurring Revenue Grows 16% Representing 90% of Total Revenue;
      Reaffirms 2018 Full Year Financial Guidance

      Charleston, S.C. (July 30, 2018) – Blackbaud (NASDAQ: BLKB), the world’s leading cloud software company powering social good, today announced financial results for its second quarter ended June 30, 2018.

      “We’ve continued moving the business toward a subscriptions-based revenue model with our mix of recurring revenue now standing at 90 percent of total, a new all-time high for us,” said Mike Gianoni, Blackbaud’s president and CEO. “We announced our Cloud Solution for Faith Communities with the introduction of Blackbaud Church Management™ which is a massive market for us and a tremendous opportunity to deliver integrated, end-to-end cloud capabilities through a single, connected experience. Our Cloud Solution for Faith Communities takes full advantage of the rapid innovation, modern user experience and enhanced capabilities made possible by our Blackbaud SKY® platform. No one in the industry has taken this approach with a modern platform and customers are lining up to be a part of our early adopter program.”

      Second Quarter 2018 Results Compared to Second Quarter 2017 Results:

      • Total GAAP revenue was $213.7 million, up 11.5%, with $192.7 million in GAAP recurring revenue, representing 90.2% of total GAAP revenue. GAAP recurring revenue was up 15.8%.
      • Total non-GAAP revenue was $214.6 million, up 11.8%, with $193.6 million in non-GAAP recurring revenue, representing 90.2% of total non-GAAP revenue. Non-GAAP recurring revenue was up 16.2%.
      • Non-GAAP organic revenue increased 4.8% and non-GAAP organic recurring revenue increased 8.0%.
      • GAAP income from operations decreased 31.2% to $11.4 million, with GAAP operating margin decreasing 330 basis points to 5.3%.
      • Non-GAAP income from operations increased 11.9% to $45.2 million, with non-GAAP operating margin increasing 10 basis points to 21.1%.
      • GAAP net income decreased 40.2% to $6.6 million, with GAAP diluted earnings per share of $0.14, down $0.09.
      • Non-GAAP net income increased 28.8% to $33.0 million, with non-GAAP diluted earnings per share of $0.69, up $0.15.
      • Non-GAAP free cash flow was $41.6 million, an increase of $9.8 million.

      “We’ve been diligently executing a workplace strategy to better align our organizational objectives with our geographically diverse workforce in the second quarter,” said Tony Boor, Blackbaud’s executive vice president and CFO. “We moved into our new state-of-the-art world headquarters in Charleston, SC, and continued upgrading and expanding our satellite office locations to be more centrally located for employees and closer to customers. We expect to incur near-term before tax restructuring charges from $6 to $8 million through 2019 with future expected annual before-tax savings of between $3 and $4 million beginning in 2020. We’ve also seen solid gains in our sales productivity and plan to ramp sales hiring heading into the second-half of 2018 with the expectation that we won’t see material top-line return on these investments until 2019 and more fully in 2020.”

      An explanation of all non-GAAP financial measures referenced in this press release is included below under the heading “Non-GAAP Financial Measures.” A reconciliation of the company’s non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.

      Recent Company Highlights:

      Visit www.blackbaud.com/press-room for more information about Blackbaud’s recent highlights.

      Dividend
      Blackbaud announced today that its Board of Directors has declared a third quarter 2018 dividend of $0.12 per share payable on September 14, 2018 to stockholders of record on August 28, 2018.

      Financial Outlook
      Blackbaud today reaffirmed its 2018 full year financial guidance:

      • Non-GAAP revenue of $870 million to $890 million
      • Non-GAAP operating margin of 20.6% to 21.0%
      • Non-GAAP diluted earnings per share of $2.75 to $2.88
      • Non-GAAP free cash flow of $165 million to $175 million

      Blackbaud has not reconciled forward-looking full-year non-GAAP financial measures contained in this news release to their most directly comparable GAAP measures, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliations would require unreasonable efforts at this time to estimate and quantify with a reasonable degree of certainty various necessary GAAP components, including for example those related to compensation, acquisition transactions and integration, tax items or others that may arise during the year. These components and other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ significantly from their non-GAAP counterparts.

      Reclassifications
      Our revenue from “subscriptions” and “maintenance” and a portion of our “services and other” revenue have been combined within “recurring” revenue beginning in 2018. In order to provide comparability between periods presented, those amounts of revenue have been combined within “recurring” revenue in the previously reported consolidated statements of comprehensive income to conform to presentation of the current period. Similarly, “cost of subscriptions” and “cost of maintenance” and a portion of “cost of services and other” have been combined within “cost of recurring” in the previously reported consolidated statements of comprehensive income to conform to presentation of the current period. “Services and other” revenue has been renamed as “one-time services and other” and consists of revenue that did not meet the description of “recurring” revenue in the consolidated statements of comprehensive income. “Cost of services and other” has been renamed as “cost of one-time services and other” and consists of costs that did not meet the description of those related to “recurring” revenue in the consolidated statements of comprehensive income.

      Adoption of New Revenue Accounting Standard
      On January 1, 2018, we adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), using the full retrospective method of transition, which requires that the standard be applied to all periods presented. The impacts of adoption are reflected in the financial information herein. We have provided more detailed information regarding the impact of our adoption of ASU 2014-09 in a Form 8-K filed with the Securities and Exchange Commission on April 30, 2018. We have also made that information accessible via the Investor Relations section of our website.

      Conference Call Details

      What:           Blackbaud’s 2018 Second Quarter Conference Call

      When:          July 31, 2018

      Time:           8:00 a.m. (Eastern Time)

      Live Call:    800-289-0462 (US/Canada); passcode 367579.

      Webcast:     Blackbaud’s Investor Relations Webpage

      About Blackbaud
      Blackbaud (NASDAQ: BLKB) is the world’s leading cloud software company powering social good. Serving the entire social good community—nonprofits, foundations, companies, education institutions, healthcare organizations and individual change agents—Blackbaud connects and empowers organizations to increase their impact through cloud software, services, expertise, and data intelligence. The Blackbaud portfolio is tailored to the unique needs of vertical markets, with solutions for fundraising and CRM, marketing, advocacy, peer-to-peer fundraising, corporate social responsibility, school management, ticketing, grantmaking, financial management, payment processing, and analytics. Serving the industry for more than three decades, Blackbaud is headquartered in Charleston, South Carolina and has operations in the United States, Australia, Canada and the United Kingdom. For more information, visit www.blackbaud.com.

      Investor Contact: Media Contact:
      Mark Furlong Nicole McGougan
      Director of Investor Relations Public Relations Manager
      843-654-2097 843-654-3307
      mark.furlong@blackbaud.com nicole.mcgougan@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 which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding: the predictability of our financial results, expectations that our revenue will continue to grow, and expectations that we will achieve our projected 2018 full-year financial guidance. These statements 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: management of integration of acquired companies; uncertainty regarding increased business and renewals from existing customers; a shifting revenue mix that may impact gross margin; continued success in sales growth; risks related to our dividend policy and stock repurchase program, including the possibility that we might discontinue payment of dividends; 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 www.sec.govor upon request from Blackbaud’s investor relations department. Blackbaud assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

      Trademarks
      All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.

      Non-GAAP Financial Measures
      Blackbaud has provided in this release financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP revenue, non-GAAP recurring revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income and non-GAAP diluted earnings per share. Blackbaud has acquired businesses whose net tangible assets include deferred revenue. In accordance with GAAP reporting requirements, Blackbaud recorded write-downs of deferred revenue to fair value, which resulted in lower recognized revenue. Both on a quarterly and year-to-date basis, the revenue for the acquired businesses is deferred and typically recognized over a one-year period, so Blackbaud’s GAAP revenues for the one-year period after the acquisitions will not reflect the full amount of revenues that would have been reported if the acquired deferred revenue was not written down to fair value. The non-GAAP measures described above reverse the acquisition-related deferred revenue write-downs so that the full amount of revenue booked by the acquired companies is included, which Blackbaud believes provides a more accurate representation of a revenue run-rate in a given period. In addition to reversing write-downs of acquisition-related deferred revenue, non-GAAP financial measures discussed above exclude the impact of certain items that Blackbaud believes are not directly related to its performance in any particular period, but are for its long-term benefit over multiple periods.

      In addition, Blackbaud uses non-GAAP organic revenue growth, non-GAAP organic revenue growth on a constant currency basis and non-GAAP organic recurring revenue growth, in analyzing its operating performance. Blackbaud believes that these non-GAAP measures are useful to investors, as a supplement to GAAP measures, for evaluating the periodic growth of its business on a consistent basis. Each of these measures excludes incremental acquisition-related revenue attributable to companies acquired in the current fiscal year. For companies acquired in the immediately preceding fiscal year, each of these measures reflects presentation of full-year incremental non-GAAP revenue derived from such companies as if they were combined throughout the prior period, and it includes the non-GAAP revenue attributable to those companies, as if there were no acquisition-related write-downs of acquired deferred revenue to fair value as required by GAAP. In addition, each of these measures excludes prior period revenue associated with divested businesses. The exclusion of the prior period revenue is to present the results of the divested businesses within the results of the combined company for the same period of time in both the prior and current periods. Blackbaud believes this presentation provides a more comparable representation of its current business’ organic revenue growth and revenue run-rate.

      Non-GAAP free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software development, and capital expenditures for property and equipment.

      As previously disclosed, beginning in 2018, Blackbaud applies a non-GAAP effective tax rate of 20.0% when calculating non-GAAP net income and non-GAAP diluted earnings per share. The non-GAAP tax rate will be reviewed annually to determine whether it remains appropriate in consideration of Blackbaud’s financial results including its periodic effective tax rate calculated in accordance with GAAP, its operating environment and related tax legislation in effect and other factors deemed necessary. All 2017 measures of non-GAAP net income and non-GAAP diluted earnings per share included in this news release are calculated under Blackbaud’s historical non-GAAP effective tax rate of 32.0%.

       

      Blackbaud uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Blackbaud’s ongoing operational performance. Blackbaud believes that these non-GAAP financial measures reflect Blackbaud’s ongoing business in a manner that allows for meaningful period-to-period comparison and analysis of trends in its business. In addition, Blackbaud believes that the use of these non-GAAP financial measures provides additional information for investors to use in evaluating ongoing operating results and trends and in comparing its financial results from period-to-period with other companies in Blackbaud’s industry, many of which present similar non-GAAP financial measures to investors. However, these non-GAAP financial measures may not be completely comparable to similarly titled measures of other companies due to differences in the exact method of calculation between companies. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures.

       

      Blackbaud and Facebook Scale Online Giving to Bolster Event Fundraising

      Leading tech companies team up to help social good organizations
      extend the reach of their peer-to-peer fundraising events

      Charleston, S.C. (July 26, 2018) — Blackbaud (NASDAQ: BLKB), the world’s leading cloud software company powering social good, today announced the general availability of the integration of its cloud fundraising and engagement solutions with Facebook’s fundraising solution. Blackbaud’s integration seamlessly enables the publication of Blackbaud TeamRaiser® fundraisers to Facebook, allowing event supporters to simultaneously solicit donations directly via their own social networks and their TeamRaiser webpages while helping nonprofits view and manage Facebook transactions within TeamRaiser.

      Both companies announced this new capability last November, with early adopters JDRF, National Multiple Sclerosis Society and Susan G. Komen working alongside Blackbaud and Facebook.

      “Blackbaud is the first and only cloud software company to leverage Facebook’s Fundraising API, which provides added value for our Luminate Online™ and TeamRaiser customers,” said Mary Beth Westmoreland, chief technology officer at Blackbaud. “We understand that managing fundraising between Facebook and other nonprofit technologies can be challenging for nonprofits, especially reconciling data with existing campaigns. Through this integration, Blackbaud delivers features to give nonprofits seamless access and centralized control over their Facebook fundraising tools, driving campaign awareness, maximizing participant fundraising and maintaining momentum even after events conclude.”

      Facebook expands organizations’ fundraising networks while Blackbaud optimizes their fundraising strategy—all in one purpose-built place.

      Using the Facebook integration, Blackbaud customers now have a simplified way to manage, process and record Facebook donations in Blackbaud TeamRaiser. The integration helps customers:

      • Improve participant and donor experience – participants can easily reach out to friends and family to reach their goals faster, with donations being made without leaving Facebook.
      • Raise more money, more efficiently – participants can fundraise simultaneously in both Facebook and TeamRaiser; donations will sync between both.
      • Increase reach and efficiency – Facebook Fundraisers are native content and given higher priority on newsfeeds; data is automatically updated in TeamRaiser.

      “We’re excited to partner with Blackbaud to help nonprofits optimize their fundraising strategies,” said Emily Dalton Smith, director, Social Good Partnerships, Facebook. “Expanding to peer-to-peer fundraising events will help people generate more impact and even further support the causes they care about.”

      Early feedback indicates improved donor experience, increased dollars raised and increased efficiency in managing campaigns across platforms:

      “Being able to provide our Ride For Roswell participants with the option to integrate their personal fundraising pages with Facebook Fundraisers was a game changer for our 2018 event,” said Cindy Eller, executive director at Roswell Park Alliance Foundation. “One of our new riders received more than 20 gifts through Facebook within three days of integrating her fundraising page and another received more than 50 gifts and became one of our top fundraisers. These are just two examples that proves this new option was allowing our participants to better leverage their social networks in their fundraising efforts. We are also truly pleased that Facebook donations are processed within Luminate Online and update our participants’ TeamRaiser thermometers in real time. We’re excited by the possibilities of this tool and look forward to incorporating it into our other peer-to-peer fundraising events.”

      This integration addresses an important need for Blackbaud customers: an automated, cost-effective and efficient way to leverage the reach of the Facebook platform to activate fundraisers while also managing, processing, and recording those donations directly in their Blackbaud solutions. Blackbaud intends to expand integration capabilities to its entire portfolio of cloud fundraising and engagement solutions in the future.

      Discover best practices and case studies of nonprofits who are successfully using Facebook Fundraisers by watching the on-demand Blackbaud webinar.

      Click to tweet: .@Blackbaud and @Facebook team up to help #socialgood orgs extend the reach of their P2P #fundraising events https://blkb.co/2LbOh1a

      About Blackbaud
      Blackbaud (NASDAQ: BLKB) is the world’s leading cloud software company powering social good. Serving the entire social good community—nonprofits, foundations, companies, education institutions, healthcare organizations and individual change agents—Blackbaud connects and empowers organizations to increase their impact through cloud software, services, expertise, and data intelligence. The Blackbaud portfolio is tailored to the unique needs of vertical markets, with solutions for fundraising and CRM, marketing, advocacy, peer-to-peer fundraising, corporate social responsibility, school management, ticketing, grantmaking, financial management, payment processing, and analytics. Serving the industry for more than three decades, Blackbaud is headquartered in Charleston, South Carolina and has operations in the United States, Australia, Canada and the United Kingdom. For more information, visit www.blackbaud.com.

      Blackbaud Media Contact
      Nicole McGougan
      Public Relations Manager
      843.654.3307
      media@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 SEC’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.

      Blackbaud Unveils Innovative New Benchmarking Capabilities in Raiser’s Edge NXT

      Social good software leader leverages unmatched data and insight to add the market’s most
      comprehensive benchmarks to flagship fundraising solution

      Charleston, S.C. (July 25, 2018)Blackbaud (NASDAQ: BLKB), the world’s leading cloud software company powering social good, today announced the release of new benchmarking capabilities in Raiser’s Edge NXT™, its flagship cloud fundraising and relationship management solution. Since announcing its unique approach to AI, analytics, big data and expertise—Intelligence for Good®—in 2017, Blackbaud has continued to deliver powerful analytical capabilities and resources by harnessing the power of its exclusive data assets.

      “Blackbaud is committed to enabling our customers to thrive and be as effective as possible within the Ecosystem of Good,” said Kevin McDearis, chief products officer at Blackbaud. “This commitment is not just about enhancements to software—it’s about equipping the entire social good community to drive more impact. Impact starts with data, and Blackbaud offers the industry’s most robust, proven set of data analytics designed specifically for social good that drive meaningful outcomes for our customers. The new benchmarking capabilities within Raiser’s Edge NXT are another way we’re committed to leveraging our unmatched data and insights to equip our customers to work more effectively and capitalize on more opportunities.”

      Raiser’s Edge NXT’s prescriptive and predictive analytics have already served up over $4.5 billion in potential fundraising opportunities for Blackbaud customers. The new benchmarking capabilities complement the existing SKY Reporting™ functionality in Raiser’s Edge NXT, giving customers the ability to compare their performance in key aggregated fundraising metrics against  like peer organization profiles. These benchmark capabilities will provide customers insight into their performance and help quantify the value of improving performance, referencing specific tools in Raiser’s Edge NXT to help drive growth. Additionally, the interactive benchmarks will guide users to built-in reports as well as best-practice resources published by the Blackbaud Institute for Philanthropic Impact™.

      With Blackbaud’s Benchmarking Capabilities in Raiser’s Edge NXT, customers can:

      • Measure their fundraising performance with a standardized set of common fundraising metrics, including automated data analysis, calculation and presentation.
      • Understand the revenue opportunity associated with improving performance so they can focus efforts on the highest return-on-investment opportunities.
      • Work more effectively with integrated performance metrics that are completely automated at their fingertips.

      Satisfaction for Blackbaud’s flagship cloud innovation continues to climb with social good organizations correlating positive mission impact to Raiser’s Edge NXT’s advanced capabilities:

      • “Having the benchmarks and recommendations right inside of Raiser’s Edge NXT is very helpful; we can use it to help our fundraisers focus on the right areas,” said Christopher LeBlanc at Maricopa Community Colleges Foundation in Tempe, Ariz.
      • “The capability to compare our performance to other nonprofits is an exciting, useful resource for our sector,” said Nell Saunders-Scott at The Parenting Place in La Crosse, Wis.

      Learn more about benchmarking for Raiser’s Edge NXT by watching the on-demand Blackbaud webinar.

      Click to tweet: Blackbaud adds industry’s largest and most diverse group of fundraising benchmark capabilities to Raiser’s Edge NXT https://blkb.co/2uQ9Drk

      About Blackbaud
      Blackbaud (NASDAQ: BLKB) is the world’s leading cloud software company powering social good. Serving the entire social good community—nonprofits, foundations, companies, education institutions, healthcare organizations and individual change agents—Blackbaud connects and empowers organizations to increase their impact through cloud software, services, expertise, and data intelligence. The Blackbaud portfolio is tailored to the unique needs of vertical markets, with solutions for fundraising and CRM, marketing, advocacy, peer-to-peer fundraising, corporate social responsibility, school management, ticketing, grantmaking, financial management, payment processing, and analytics. Serving the industry for more than three decades, Blackbaud is headquartered in Charleston, South Carolina and has operations in the United States, Australia, Canada and the United Kingdom. For more information, visit www.blackbaud.com.

      Media Contact
      Nicole McGougan
      Public Relations Manager
      843.654.3307
      media@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, including statements regarding expected benefits of products and product features. 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 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 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.

      Blackbaud Named to Forbes Best Employers for Women 2018 List

      Charleston, S.C. (July 24, 2018)Blackbaud (NASDAQ: BLKB), the world’s leading cloud software company powering social good, today announced it has been named to Forbes America’s Best Employers for Women 2018 list. Blackbaud was specifically recognized in the IT/Internet software category for excellence in diversity, pay equity, professional development, family support and more.

      “On behalf of our 3,400 employees around the world, we are honored to be named by Forbes to this important list,” said John Mistretta, executive vice president, Human Resources at Blackbaud. “This recognition is an encouraging acknowledgement of our committed focus on diversity and validates Blackbaud’s steadfast efforts to create an environment that enables women—and all employees—to realize their full potential, feel valued and do their best work. As a technology company, we are proud of the equal gender balance in our workforce, yet we know there is still progress to be made. By fostering a culture in which we live our values and promote diversity, inclusion and equality in the workplace, we are able to better support the diverse ecosystem of social good that we serve.”

      Blackbaud’s diversity program has been a focused and continually expanding effort, spanning education, awareness, recruitment, empowerment, community involvement and financial support. Many of Blackbaud’s female leaders give back to their communities, sharing their expertise in support of many important organizations and causes, including participation in the Global Women’s Mentorship Partnership program facilitated by the U.S. State Department and Fortune magazine; Camp Blackbaud STEM program for undeserved youth; Charleston Women in Tech; Impact Austin, a women’s philanthropic giving circle making major grants to nonprofits; the Women’s Impact Initiative; and more.

      The Forbes Best Employers for Women list is based on an independent survey from a sample of 40,000 U.S. employees working for companies employing at least 1,000 people in their U.S. operations. Earlier this year, Forbes also named Blackbaud one of “America’s Best Employers for Diversity.” Blackbaud has also been recognized as one of Forbes’ “Best Mid-Size Employers” for three consecutive years and one of Forbes’ “Most Innovative Growth Companies.” In 2017, Blackbaud was named a Rising Star on Fortune’s prestigious “Change the World” list.

      To hear from some of the women who make Blackbaud great, click here.

      Click to tweet: .@blackbaud named to @Forbes’ “America’s Best Employers for Women 2018” list. https://blkb.co/2uOXZMp

      About Blackbaud
      Blackbaud (NASDAQ: BLKB) is the world’s leading cloud software company powering social good. Serving the entire social good community—nonprofits, foundations, companies, education institutions, healthcare organizations and individual change agents—Blackbaud connects and empowers organizations to increase their impact through cloud software, services, expertise, and data intelligence. The Blackbaud portfolio is tailored to the unique needs of vertical markets, with solutions for fundraising and CRM, marketing, advocacy, peer-to-peer fundraising, corporate social responsibility, school management, ticketing, grantmaking, financial management, payment processing, and analytics. Serving the industry for more than three decades, Blackbaud is headquartered in Charleston, South Carolina and has operations in the United States, Australia, Canada and the United Kingdom. For more information, visit www.blackbaud.com.

      Blackbaud Media Contact
      Nicole McGougan
      Public Relations Manager
      843.654.3307
      media@blackbaud.com

      Award-Winning Actor and Humanitarian Blair Underwood to Headline bbcon 2018

      Premier tech gathering for social good promotes best practices, innovative thinking
      and radical collaboration with leading experts from across the industry

      Charleston, S.C. (July 24, 2018)Blackbaud (NASDAQ: BLKB), the world’s leading cloud software company powering social good, today announced that Blair Underwood will join the keynote lineup for bbcon 2018, the premier tech gathering for organizations and change agents driving social good that will be held October 9-11 at the Gaylord Palms Resort & Convention Center in Orlando, Fla.

      “We are thrilled to have Blair Underwood join us for bbcon 2018,” said Catherine LaCour, Blackbaud’s chief marketing officer. “Each year bbcon convenes thousands of change agents to share the latest insights, trends and innovation—from fundraising and marketing strategies, to best practices for accounting and stewardship, to technology advancements and more. Blair’s involvement in numerous charitable organizations genuinely reflects a passion to help good take over and attendees will benefit from his unique perspective as a public advocate and spokesperson, producer of the philanthropy-centered NBC series ‘Give,’ and philanthropist and co-founder of international nonprofit organization Artists for a New South Africa.”

      A true multi-hyphenate, Blair Underwood is enjoying success in film, television and theatre as an actor, director and producer. Onscreen, he was most recently seen as a series regular on ABC series, Quantico. Prior to his role on “Quantico,” Blair recurred on another hit ABC drama, “AGENTS OF S.H.I.E.L.D.” His past television credits feature several series, including “L.A. Law”, “New Adventures of Old Christine,” “In Treatment,” “Dirty Sexy Money,” and “The Event.” His film credits include “Rules of Engagement,” “Madea’s Family Reunion” and “Full Frontal.” He co-starred opposite Cicely Tyson in the Lifetime telefilm, “A Trip To Bountiful,” based on the Tony award winning play. In 2012 he made his acclaimed Broadway debut in the iconic role of Stanley in Tennessee Williams’ “A Streetcar Named Desire,” for which he earned a 2012 Drama League Distinguished Performance Award nomination.

      He will next be seen in two feature films, both debuting on Netflix later in 2018: “The After Party,” for writer/director Ian Edelman, and “Juanita,” for director Clark Johnson, in which he stars opposite Alfre Woodard. Underwood also has several projects in the development pipeline as a director, including “Patch,” an elevated genre feature based on a Gregg McBride script.  In 2010 Underwood made his feature film directing debut with “The Bridge to Nowhere,” which starred Ving Rhames, Danny Masterson, Bijou Phillips and Alex Breckenridge.

      Underwood is an Emmy Award winner (as producer of the philanthropy-centered NBC Saturday morning series, “Give”), a two-time Golden Globe Award nominee, and has been nominated for 17 NAACP Image Awards (three wins). He won a Grammy for Best Spoken Word as co-narrator of “An Inconvenient Truth” and is a newly minted member of the Academy of Motion Picture Arts and Sciences. Underwood received the Humanitarian Award for his work with the Los Angeles chapter of the Muscular Dystrophy Association. He co-founded Artists for a New South Africa and also served as a spokesperson for YouthAIDS. Underwood is on the Board of Governors of Love Our Children USA, and appeared in a public service announcement for the Fulfillment Fund.

      “Blackbaud’s bbcon 2018 conference is an inspiring event that unites thousands of people who share a commitment to using technology to make a powerful impact in the world,” said Underwood. “I’m honored to join this important event and look forward to trading stories with this inspiring community of professionals who dedicate their day jobs to making the world a better place.”

      Attendees will also have access to dedicated content for various roles and markets—from nonprofits and arts and cultural organizations to faith communities to education institutions, healthcare organizations, foundations, companies and more. “Data, catalyzing the power of the individual and true collaboration—we believe these three factors will drive momentum in the social economy, ultimately making it possible for organizations and individuals working for good to do so more effectively,” LaCour added. “We are excited to focus on these themes throughout the conference so attendees leave even more prepared to tackle the world’s biggest problems.”

      For more information or to register, visit www.bbconference.com. Follow the conference news on Twitter with #bbcon or on Facebook at www.facebook.com/blackbaud.

      Click to tweet: Award-Winning Actor and Humanitarian @BlairUnderwood to Headline Premier Tech Gathering for Social Good #bbcon @blackbaud https://blkb.co/2KS6UYA

      About Blackbaud
      Blackbaud (NASDAQ: BLKB) is the world’s leading cloud software company powering social good. Serving the entire social good community—nonprofits, foundations, companies, education institutions, healthcare organizations and individual change agents—Blackbaud connects and empowers organizations to increase their impact through cloud software, services, expertise, and data intelligence. The Blackbaud portfolio is tailored to the unique needs of vertical markets, with solutions for fundraising and CRM, marketing, advocacy, peer-to-peer fundraising, corporate social responsibility, school management, ticketing, grantmaking, financial management, payment processing, and analytics. Serving the industry for more than three decades, Blackbaud is headquartered in Charleston, South Carolina and has operations in the United States, Australia, Canada and the United Kingdom. For more information, visit www.blackbaud.com.

      Media Contact
      Nicole McGougan
      Public Relations Manager
      843-654-3307
      media@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 SEC’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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