Blackbaud Ticker Symbol: BLKB Names: Kyle Wallace, Amar Amin, Mari Djeljaj Spring, 2015

Executive Summary ●Market Capitalization: $2.1 billion ●Ticker: BLKB ●Fair Value (Base Case): $61.16 ●Current Price: $45.30 ●Upside: 16.71% ●Recommendation: Buy

Company Overview ●Founded in 1981 by Michael Gianoni, an experienced professional within the financial services industry ● World’s leading provider of cloud-based and on-site fundraising services specifically designed for non-profit organizations ○Have helped 29,000+ customers reach their donation benchmark

Investment Thesis ●BLKB has a strong competitive position within the technology solutions industry by offering diversified products for a specific sector ●Developing high performance cloud software for services ranging from analytics to direct marketing to fundraising ●Targeting new applications for existing transaction software to expand into broader markets and geographic locations ●Online engagement in the non-profit sector grew 8.9% in 2014, and is poised to grow 14% in 2015

Macro Overview ●Cloud-based services provide a more diverse customer target market ○36% CAGR through 2016, reaching $19.5B market cap (by 2016) ●Capitalizes on online payment transactions, revenue through payment processing (transaction fees) ○Online engagement in the non-profit sector grew 8.9% in 2014, and is poised to grow 14% in 2015 ●Utilizes convenient payment methods, such as mobile phones ●Develops software to synthesize large quantities of data, and offering analytics for clients ○From industry growth of 58% to $18.6B, projected to be at $45.3B by 2016

Operational Overview Software development solutions include: Nonprofit fundraising and relationship management Raiser's Edge, Blackbaud CRM, & eTapestry Analytics Target Analytics Grant Management With their acquisition of MicroEdge Professional Services Implementation services, Technology services

Products & Services Revenue By Segment Revenue Growth Per Year ●Revenue Growth has been focused on subscriptions and services, because companies are struggling develop and maintain their information technology platform. ●The company has consolidated 24 legacy systems into six best-of-breed platforms, which are expected to drive increasing operating efficiency and contribute to the margin improvement plan being executed through 2017.

End Markets Animal Welfare Arts & Culture Faith-Based Foundations Healthcare Higher Education Human Services K-12 & Independent Schools Public Broadcasting

Customer Base Blackbaud controls 11.4% of a total addressable market of $4.4 billion. Notable established customer base –Heart Foundation –Unicef –Special olympics –YMCA –Ronald McDonald House of Charities Customers reach across all continents

Risks & Mitigates Risks 1.End Markets 2.Disruptive Technology 3.Security Breach Potential Mitigates 1.Management 2.Cash Flow 3.Lack of Competition 4.Retention Rate

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Summary ●Market Capitalization: $2.1 billion ●Ticker: BLKB ●Fair Value (Base Case): $61.16 ●Current Price: $45.30 ●Upside: 16.71% ●Recommendation: Buy Questions!

Sources ●Morningstar ●Bloomberg ●CNBC ●BamSec ●Forbes