Blackbaud, Inc. : Target Analytics Offers New Services to Provide Nonprofits Insights into Donor Behavior

Blackbaud, Inc. (Nasdaq: BLKB) today announced the availability of Loyalty Insights and Lapsed Insights data services, designed to help nonprofits better understand their prospective donors based on behavioral segmentation. The services are the first of their kind available to the nonprofit market and are the latest offerings from Target Analytics, a Blackbaud company, which offers solutions for donor acquisition, prospect research, donor benchmarking, custom modeling, and data enrichment services to more than 6,000 nonprofits.

"With an understanding of the loyalty characteristics of prospective donors, nonprofits are able to optimize their direct marketing fundraising strategies around donors with high long term value potential," said Richard Becker, president of Target Analytics. "Our unique ability to generate a holistic view of a donor's historical giving allows Target Analytics to provide our clients insight to more effectively target high value prospects and significantly improve campaign return-on-investment."

**Identifying the most engaged donors **Target Analytics has the largest nonprofit cooperative database of giving behavior based on actual transactions from hundreds of participating organizations and billions of donations. The new Insights data services leverage this database to assess an organization's prospective donors against all other organizations they support, using numerous statistical measures and rankings.

"Our great enthusiasm for Loyalty Insights stems from a long-held conviction that loyalty, as the key predictor of donor and donor base value, is far more important to planning near- and long-term fundraising than even cumulative annual giving value," said Christopher Dann, president of Drakes Bay Fundraising, who is piloting the service with several clients. "This value goes well beyond fundraising to knowledge today's CEOs, CFOs, and even board members should have."

Loyalty Insights helps nonprofits understand who their most active loyal donors are so they can provide more focused time and attention to maximize fundraising results. A nonprofit's donors are assessed against the cooperative database and segmented into one of seven actionable, behavioral groupings called "Loyalty Insights," ranging from "Not that Into You" to "Best of the Best" providing the organization a clear understanding of which donors have the strongest affinity for its cause. The result is a report that highlights donors' specific level of support to a particular organization compared against all the others, enabling fundraisers to determine how to develop ongoing engagement strategies.

"Target Analytics Loyalty Insights couldn't come at a better time - as acquisition efforts stagnate, recognizing, cultivating and holding on to the donors you already have is more important than ever," said Susie DeCarlo, senior strategist with Mal Warwick Associates. "Loyalty Insights gives us a new tool to enhance traditional RFM strategies and identify targeted segments of donors ripe for a sustainer invitation, planned giving ask and upgrade strategies."

Lapsed Insights helps nonprofits identify and target lapsed donors (36-120 months) providing a basis from which to develop specific campaign strategies to reactivate those donors. Like Loyalty Insights, a nonprofit's file is assessed against the cooperative database and is segmented into actionable, behavioral groupings based on their likelihood to reactivate. The resulting groups highlight a combination of current giving behavior to other organizations as well as past giving to that particular nonprofit, enabling insight into strategies on how to reengage those donors.

For more information about Target Analytics direct marketing services, visit www.blackbaud.com/makeamatch.

**About Blackbaud **Serving the nonprofit and education sectors for 30 years, Blackbaud (NASDAQ: BLKB) combines technology and expertise to help organizations achieve their missions. Blackbaud works with more than 25,000 customers in more than 60 countries that support higher education, healthcare, human services, arts and culture, faith, the environment, independent education, animal welfare, and other charitable causes. The company offers a full spectrum of cloud-based and on-premise software solutions, and related services for organizations of all sizes including: fundraising, eMarketing, social media, advocacy, constituent relationship management (CRM), analytics, financial management, and vertical-specific solutions. Using Blackbaud technology, these organizations raise more than $100 billion each year. Recognized as a top company by Forbes, InformationWeek, and Software Magazine and honored by Best Places to Work, Blackbaud is headquartered in Charleston, South Carolina and has employees throughout the US, and in Australia, Canada, Hong Kong, Mexico, the Netherlands, and the United Kingdom.

**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 Melanie Mathos, 843-216-6200 x3307 media@blackbaud.com