University of Michigan Selects Blackbaud Enterprise CRM and Target Analytics

Blackbaud, Inc. (Nasdaq: BLKB), the leading global provider of software and related services designed specifically for nonprofit organizations, today announced that the University of Michigan, one of the world’s premiere research universities, has selected Blackbaud Enterprise CRM^™ and Target Analytics^® to replace its system-wide fundraising technology and prospect research services.

"We are pleased to partner with the University of Michigan to enhance its development efforts and build even stronger relationships with its many constituents,” said Marc Chardon, Blackbaud’s chief executive officer. "Working together, we will centralize and optimize data from over 40 fundraising units, increase the effectiveness of 1,000 users, and ultimately achieve the University’s goals of better serving constituents, increasing support, and improving the overall user experience.”

Founded in 1817, the University of Michigan has stood as the national model for large public universities for more than a century. With an enrollment of more than 41,000 undergrad and graduate students, it is Michigan's oldest university system. The University’s endowment is the 7th largest in the country and 2nd largest among public institutions according to data compiled by the National Association of College and University Business Officers.

Last year, the University selected Blackbaud Enterprise CRM to undergo a comprehensive assessment to ensure that the solution could support its complex needs. Blackbaud completed the assessment successfully and demonstrated that the solution’s future development path fit the University’s evolving needs.

On August 28, 2009, the University contracted with Blackbaud for a full implementation. Blackbaud Enterprise CRM will provide the University with enhanced capabilities in fundraising, marketing, prospect research, volunteer and event management, and website administration. In addition, the solution will provide highly flexible reporting and analytical capabilities, strong data security and end-user access administration, and out-of-the-box technical tools to support configuration and customization options.

Blackbaud Enterprise CRM will centralize data from more than 40 University fundraising units located on three different campuses and from more than 1,000 users that access constituent information in different ways and require different views of the data. In addition, the solution will provide improved reporting and information deployment, integration with other University systems, streamlined accounting, and technical support activities.

Additionally, the University’s prospect research team will partner with Blackbaud’s Target Analytics division to provide the University’s gift officers with real-time data and prospect information. The University’s team will use the prospect research functionality powered by ResearchPoint^™ in Blackbaud Enterprise CRM to build comprehensive prospect profiles. The University will also use Target Analytics services including ProspectPoint^® and its complete giving set of custom modeling to assess prospects’ ability and likelihood to make gifts, and WealthPoint^® for ongoing wealth updates and individual searching.

From a financial perspective, Blackbaud expects to recognize revenue related to this contract over the next two to three years and does not expect a material revenue impact during 2009.

With more than 25 years of experience serving higher education institutions, Blackbaud has partnered with over 1,900 universities, colleges, and foundations worldwide by providing solutions that help secure funding, demonstrate accountability, and build strong relationships with alumnae/alumni, students, parents, and supporters. For more information about Blackbaud’s solutions for higher education organizations, visit www.blackbaud.com/highered.

About the University of Michigan

Founded in 1817, the University of Michigan is a leading public university known for research, interdisciplinary programs, international outreach, academics, and athletics. The University is renowned for its interdisciplinary research initiatives, such as nanoscience and technology, energy, and life sciences. It includes an award-winning health care system, which consistently ranks high on the Honor Roll of America's Best Hospitals compiled by U.S. News and World Report and three regional campuses (Ann Arbor, Flint, and Dearborn). Last year, U-M completed an historical $3.2 billion campaign, called the Michigan Difference. At the time, it was the largest amount ever raised by a public university. www.umich.edu.

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, In Touch 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 Australia, Canada, 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.