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Blackbaud Highlights Key Nonprofit Sector Trends to Watch in 2013

Blackbaud (Nasdaq: BLKB) today shared trends that will have the biggest impact on the nonprofit sector in 2013: charitable giving is not likely to grow much; a revaluing of the nonprofit sector will occur; technology will play an increasingly important role for both organizations and supporters; and the world will continue to shrink as philanthropic borders broaden.

“In 2013, nonprofits must adjust to operate within the new normal of uncertainty created by persistent economic and regulatory challenges amidst a shifting supporter demographic,” said Marc Chardon, Blackbaud’s president and chief executive officer. “But while challenges certainly exist for the nonprofit sector, there are also opportunities for organizations to use technology to deliver on their missions in a very effective, scalable and real-time way.”

Key Nonprofit Sector Trends in 2013:

  • Increase in charitable giving will not be dramatic
    Charitable giving in 2012 was relatively flat, according to The Blackbaud Index, and given the slow economic recovery, is not likely to dramatically increase in 2013. For the past 40 years, fundraising in the United States has remained fairly static at around 2 percent of GDP; and that’s not expected to change over the next few years. There will be a "flight to quality" with donors choosing to support fewer organizations in 2013. To be successful, nonprofits must increase their focus on donor retention while also investing in cost-effective donor acquisition.
  • The nonprofit sector will go through a revaluing process
    There are cultural shifts occurring in how nonprofits are being viewed, which will ultimately benefit the sector. The debate about the charitable deduction puts the value of the sector’s contribution squarely in the public consciousness. A growing number of people are seeking careers with meaning as Baby Boomers start second careers in the nonprofit sector, and Millennials seek degrees in nonprofit management. “Nonprofit” is increasingly being viewed as just a tax status, not a business model. There is a merging of nonprofit and for-profit business practices—bringing together sustainability and effectiveness in operations along with mission-driven passion.
  • Technology will play a major role for both nonprofits and their supporters
    Mobile, cloud computing, Big Data and CRM will steal the spotlight in 2013 from a technology perspective and provide nonprofits a full 360-degree view of supporters. This will be the year nonprofits go from testing the mobile experience to delivering the mobile experience, as most nonprofits plan to double their use of mobile technologies in 2013 according to Blackbaud’s recent State of the Nonprofit Industry report. Today's mobile and "in the cloud" experiences are driving a transformational change in what people expect from organizations in terms of response and interaction. Delivering a tailored experience to each supporter—enabled by these technologies and Big Data—will be essential for success.
  • The world is shrinking and philanthropic borders are broadening
    Disasters across the globe are no longer viewed simply as an event that occurred “over there.” Supporters and donors are starting to react in a very similar fashion regardless of the location of the disaster. There is a shift in wealth taking place in the world toward developing nations and the BRIC (Brazil, Russia, India and China) countries, and that means nonprofits need to rethink how they raise money and “go where the donors are.” Competition for resources will increase as the world flattens.

“In many ways, this is an exciting time to be a nonprofit professional,” said Chardon. “With the evolution of mobile, social and cloud-based technologies, organizations can interact in very meaningful ways with both supporters and beneficiaries around the world. And the increased efficiency will ensure greater delivery of missions in real time.”

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 27,000 customers in over 60 countries that support higher education, healthcare, human services, arts and culture, faith, the environment, independent K-12 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 operations in the United States, Australia, Canada, Mexico, 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 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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