What changed in this filing

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Item 1. Business

2025-02-21 compared with 2024-02-21 · 141 added, 128 removed, 315 unchanged (46% of the section changed)

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Millions of people across more than 100 countries connect, give, learn and engage through Blackbaud platforms.

During 2023, we had nearly 100,000 customers that paid Blackbaud through transactional fees and more than 40,000 customers with contractual billing arrangements.

During 2024, we had nearly 100,000 customers that paid Blackbaud through transactional fees and approximately 40,000 customers with contractual billing arrangements.

We are deeply proud to play a part in our customers’ success in their missions to provide healthcare and cure diseases, advance education, preserve and share arts and culture, protect the environment, support those in need and much more.

Market Overview

The social impact market is significant, spanning far beyond philanthropy, and our addressable market is substantial and growing

The social impact market is significant, spanning far beyond philanthropy, and our addressable market is substantial

There are millions of organizations globally focused on social impact including nonprofits, foundations, education institutions and healthcare organizations.

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Traditional methods of fundraising and organizational management are often costly and inefficient

Many social impact organizations use manual methods or software applications not specifically designed for fundraising and organizational management for institutions like theirs.

Many social impact organizations use manual methods or software applications not specifically designed for fundraising or nonprofit business operations.

Such methods are often costly and inefficient because of the difficulties in effectively collecting, sharing and using donation-related information.

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• Improve the data collection and information sharing capabilities of their employees, volunteers and donors by creating and providing distributed access to centralized databases.

Because of these challenges, we believe nonprofits, education institutions, healthcare organizations and houses of worship can benefit from software applications and services specifically designed to serve their particular needs and workflows to grow revenue, work effectively and accomplish their missions.

2024 Form 10-K

Blackbaud, Inc.

Companies, grantmaking institutions and foundations also face unique challenges

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• Cultivate new and existing donors.

Our objective is to maintain and extend our position as the leading provider of cloud software and services for the global social impact community, supporting our customers' missions from securing resources and managing their operations, to delivering their programs and measuring their impact.

Our objective is to maintain and extend our position as the leading provider of cloud software and services essential for the core business operations unique to social impact organizations, teams, and schools.

Our key strategies for achieving this objective are described below.

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In early 2023, we outlined five key operational initiatives targeted to drive innovation, bookings growth, revenue expansion and lower costs.

During 2023, we have executed on these key initiatives.

During 2024, we continued to execute on these key initiatives.

Product Innovation and Delivery

Product is core at Blackbaud, and we strive to bring increased value to our customers with improved and innovative capabilities.

We have recently announced or released a number of product enhancements as well as new solutions that enable our customers to better deliver on their missions.

To maintain our market leadership position, we are accelerating the pace of innovation and new feature delivery to our customers.

Our focus has been on two areas, artificial intelligence (AI) and enhancements that continue to improve the connectivity of our suite of solutions.

These enhancements are aimed at improving fundraising outcomes while reducing the administrative burden of our end users.

Some examples include:

• Optimized Online Donation Capabilities:

New online donation capabilities that fully integrate with Blackbaud’s payment processing and CRM software and enable customers to raise more money while reducing processing costs.

We recently began an early adopter program for the new donation capabilities with a small sample of RE NXT customers across charity, education, and arts and cultural organizations.

We expect to make them generally available in the first half of 2024.

• Prospect Insights Pro for Raiser’s Edge NXT®:

New add-on capability within Raiser’s Edge NXT® that gives fundraisers access to AI-driven insights to support planned and major gift fundraising

• Impact Edge TM :

A first-of-its-kind AI-powered, social impact reporting and storytelling solution for corporate social responsibility (CSR) and social impact teams of all sizes.

This new solution is currently in an early adopter program with our planned full roll out in the second half of 2024.

• JustGiving Storywriter:

With new generative AI capabilities, fundraisers on JustGiving are able to quickly and easily create personal stories to share with their networks.

Company research has shown that JustGiving pages that include a clear and personal story raise approximately 65% more than those that do not.

• Good Move TM :

New development transformed the Good Move activity-tracking mobile app into a powerful mobile participant center for Blackbaud TeamRaiser® peer-to-peer fundraising events.

The new expansive feature for Blackbaud TeamRaiser® became generally available in the U.S.

and Canada in March 2023.

2023 Form 10-K

Blackbaud, Inc.

• Intelligence for Good®:

In summer 2023, we launched next generation Intelligence for Good® strategy with an extensive agenda of initiatives and investments targeted at making artificial intelligence more accessible, powerful and responsible across the social impact sector

• We have released a number of AI capabilities in our solutions, including generative AI functionality for our JustGiving platform.

During 2024, we released generative AI capabilities for Raiser’s Edge NXT®, and we expect that Blackbaud Copilot will be available to our Raiser's Edge NXT customers soon.

Using Blackbaud Copilot, users can ask ad hoc questions such as “How can I improve my average donation size?” and the tool will provide intelligent responses as well as recommended actions intended to drive that outcome.

• During 2024, our Online Giving and Prospect Insights capabilities were natively integrated into Raiser's Edge NXT.

With these integrations, fundraising administrators can now drive a giving campaign, keep records of each donor interaction, identify new donation opportunities, and provide personalized messaging, all in one integrated experience.

• During 2024, we released our new optimized donation forms for Raiser's Edge NXT, Blackbaud CRM and Blackbaud Altru that fully integrate with our payment processing and CRM software.

We expect these forms to drive higher revenue for our customers and for Blackbaud.

We are delivering more innovation, evolving our products and ensuring our customers receive more value from our solutions.

Bookings Growth and Acceleration

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Our sales team is split between prospect account executives dedicated to prospecting for new clients and customer account executives who focus on selling additional products to current customers.

Given the breadth of our product portfolio, this “land and expand” model has proven successful for us over time.

2024 Form 10-K

Blackbaud, Inc.

breadth of our product portfolio, this “land and expand” model has proven successful for us over time.

As previously disclosed, there can be volatility quarter-to-quarter on bookings.

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The diversity of the underlying transaction volumes from these four sources has resulted in consistent transactional recurring revenue growth in the mid-to-high single digits over the past several years.

Strong momentum in consumer giving and tuition management, rate increases on Blackbaud Merchant Services, and increased donations tied to global events drove continued solid transactional recurring revenue growth in 2023.

Going forward we will continue to implement additional payments solutions optimization to drive enhanced donor experience.

We continue to see strong momentum in consumer giving and tuition management, we have implemented rate increases across select areas of our payments portfolio, and we continue to implement additional payments solutions optimization to drive enhanced donor experience.

Modernized Approach to Pricing and Multi-Year Contracts

Last summer, we put in place an updated pricing policy primarily for our social sector customers that directly reflects the value we provide to them, is in-line with the broader market and reflects the inflationary pressures that all businesses are facing.

In November 2022, we started notifying customers with a March 2023 contract renewal that we would be making important contract changes.

First, we are offering 3-year contract renewal terms as our standard, replacing one-year renewal terms.

This process was already being implemented outside of the pricing changes.

Second, we are implementing a more significant rate increase on the 1-year renewal option versus the 3-year renewal option.

And third, the 3-year renewal option includes embedded annual rate increases.

Our 3-year renewal options did not historically include annual rate increases.

We have now completed the 2023 renewal cohort, which represented approximately 35% of the total contractual revenue eligible for this program.

Approximately another 30% of the renewable base is up for renewal in 2024, another 25% in 2025, and the remaining 10% in the beginning of 2026.

The close day-to-day management of renewals, the mix of 3-year and 1-year contracts, and the impact of pricing are progressing well, and we expect more impact from the compounding effect of these rate increases over time as we layer in future year contract renewals and annual rate increases.

Additionally, the adoption of 3-year renewals as a standard, with more customers opting for this option than we originally expected, are expected to have an added benefit of higher retention which provides greater revenue assurance and predictability.

Looking even further ahead, the cycle starts fresh in 2026 as the 2023 signed contracts will begin to renew.

We expect that this will be a sustainable and meaningful revenue growth stream for us.

In the summer of 2022, we put in place an updated pricing policy primarily for our social sector customers that directly reflects the value we provide to them, is in-line with the broader market and reflects the inflationary pressures that all businesses are facing.

This program is designed to deliver sustained revenue growth beyond the initial three-year renewal cycle and will provide us with improved revenue visibility.

As previously disclosed, this new approach has three main components:

offering 3-year contract renewal terms as our standard, which the vast majority of customers are adopting;

embedded annual price increases within the 3-year renewal term, which we have not had previously and are beginning to take effect;

and a larger first year price increase to bring our pricing in-line with the broader market.

The first two components, as well as a portion of the third, will continue on beyond the initial renewal cycle, creating what we believe will be a sustainable source of revenue growth.

We have now completed the 2023 and 2024 renewal cohorts, which represented approximately 65% of the total contractual revenue eligible for this program.

Approximately another 25% of the renewable base is up for renewal in 2025, and the remaining 10% in the beginning of 2026.

The close day-to-day management of renewals, the mix of 3-year and 1-year contracts, and the impact of pricing are progressing well.

Additionally, the adoption of 3-year renewals as a standard, with more customers opting for this option than we originally expected, is expected to have an added benefit of higher retention which provides greater revenue assurance and predictability.

Keen Attention to Cost Management

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• Reduced our real estate footprint as part of the shift to a remote-first workforce

During 2024, we continued to run the business at about the same headcount level, while continuing to drive efficiencies in other areas of the business.

After the divestiture of EVERFI on December 31, 2024, we had approximately 2,600 employees.

As a remote-first workforce company, we can be strategic about selecting the appropriate geographic region for various functions in order to reduce costs without negatively impacting the quality of our products and services.

For example, we are currently expanding our operations in India, which we expect will give us greater access to talent, and increase the number of our employees, including management, in India.

We have rented office space in India to accommodate those new operations, although we do not currently expect to generate revenue in India in the foreseeable future.

There are two remaining legacy data centers that we are currently working towards closing in the future.

2024 Form 10-K

Blackbaud, Inc.

Going forward, our goal is to run the business at about this headcount level for the foreseeable future, while continuing to drive efficiencies in other areas of the business.

Delight Our Customers

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We will continue to focus on providing the highest level of solution support, enhancing our existing solutions, extending our solutions through open APIs and developing new solutions and services designed to help our customers be more effective and achieve their missions.

(See “Solutions and Services” below for additional information regarding the development and integration of AI into our solutions and services.)

Attract and Retain Top Talent and Actively Engage Employee Base

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We strive to hire, develop and retain the best employees and provide a supportive and inclusive environment where their talents and potential are realized.

In 2021, we formally adopted a "Remote First" model as a company, which supports Blackbaud's goal to attract top talent globally.

In 2021, we formally rolled out a remote work strategy as a company, which supports Blackbaud's goal to attract top talent globally.

For additional information, see “Human Capital Resources” below.

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We augment our software with a range of payment processing, analytic and business intelligence services, consulting, training and professional services, as well as maintenance and technical support.

The Blackbaud portfolio is delivered primarily through cloud solutions tailored to the unique needs of nonprofits and foundations, educational institutions, individual change makers and corporate social impact programs built specifically for fundraising and relationship management, marketing and engagement, financial management, grant and award management, education management, ticketing, social responsibility, payment services and analytics.

Our solutions are built specifically for fundraising and relationship management, marketing and engagement, financial management, grant and award management, education management, ticketing, social responsibility, payment services and analytics.

We are developing and implementing AI features in certain of our solutions and services as a key element of our strategy to delight our customers and remain a market leader in the social impact sector.

For example, our “Intelligence for Good” program integrates several machine learning and AI capabilities that help our customers streamline workflows, enhance efficiency and achieve better outcomes.

We have introduced generative AI features across multiple products, mainly for composing outreach communications, and will soon be offering the ability for our customers to provide contextual responses to question and answer actions.

We are also leveraging AI to transform the way we work at Blackbaud and intend to continue

2024 Form 10-K

Blackbaud, Inc.

to identify, experiment and scale a range of solutions across marketing, customer success and engineering through applied AI.

We are committed to developing and using AI responsibly and in accordance with rapidly developing laws and regulations, including with regard to the processing of personal data.

The technologies underpinning these features are in the early stages of commercial use, and we are mindful that the success of any enhancements or new products depends on many factors, including its relevance to our customers, timely implementation and market acceptance.

In addition, we regularly monitor new regulatory developments in applicable jurisdictions in order to identify and mitigate ethical and legal issues presented by our use of AI.

Furthermore, many of our AI features may rely on third-party service providers, which requires that we continuously evaluate the quality and legality of their products and operations, as well as copyright and intellectual property issues.

Our commitment to new and emerging AI technologies requires that we invest in the development and maintenance of various models, approaches and processes, as well as the development of protections and safeguards for the use of AI technologies and requires that we hire persons with specialized expertise.

As a result, we regularly monitor all aspects of our AI strategy to ensure that it is implemented in a manner consistent with our enterprise risk management processes and other company policies and procedures.

(See “Risk Factors” below for more information regarding the risks associated with our use of AI and the description below of our current uses of AI in our solutions and services.)

Our specific solutions and services include:

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Blackbaud Raiser's Edge NXT® is our flagship fundraising and relationship management solution.

Raiser's Edge NXT is the first and only cloud fundraising and relationship management solution that is all-inclusive, fully integrated with data health, analytics, email marketing, donation forms, event management, payment processing and process automation to create tailored, user-specific experiences.

Built on our Blackbaud SKY Platform, Raiser's Edge NXT is, we believe, the most advanced technology available to nonprofits seeking to operate more efficiently and raise more support for their missions.

Raiser’s Edge NXT includes access to Blackbaud Online Express™, a simple, efficient, cloud-based fundraising and marketing tool designed for smaller nonprofit organizations.

Raiser's Edge NXT is the first and only cloud fundraising and relationship management solution that is all-inclusive, fully integrated with data health, predictive analytics, email marketing, donation forms, event management, payment processing and process automation to create tailored, user-specific experiences.

We believe Raiser's Edge NXT is the most advanced technology available to nonprofits seeking to operate more efficiently and raise more support for their missions.

Blackbaud CRM™ is a comprehensive, configurable fundraising and relationship management solution.

It is our lead offering for enterprise-level organizations seeking a powerful, yet adaptable solution for fundraising, marketing and program management across the engagement lifecycle, specializing in supporting sophisticated major giving, membership and high-volume direct marketing programs.

Blackbaud CRM helps organizations build deeper and more personalized relationships with constituents, build their brands through online engagement and multichannel communication tools, and more effectively fundraise, leveraging campaign management, business intelligence and analytics.

Blackbaud CRM can be sold as an integrated solution with our enterprise online solutions to enable multi-channel marketing, online engagement and event fundraising.

Blackbaud CRM can be integrated with enterprise online solutions to enable multi-channel marketing, online engagement and event fundraising.

Blackbaud eTapestry® is a simple, cloud fundraising and donor management solution built specifically for smaller, developing nonprofits in need of a cloud solution to support basic fundraising needs.

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This technology provides a system that is simple to maintain, efficient to operate and is intuitively easy to learn without extensive training.

Blackbaud Luminate Online®, delivered in the cloud, helps our customers better understand their online supporters, make the right ask at the right time and raise money online.

Blackbaud Luminate Online®, delivered in the cloud, helps our customers better understand their online supporters, make the right ask at the right time and raise more money online.

It includes tools to build online fundraising campaigns as part of an organization's existing website or as a stand-alone fundraising site.

Donation forms, gift processing and tools for communicating through web pages and email give our customers the essentials for building sustainable donor relationships.

Blackbaud TeamRaiser® is the industry’s most comprehensive cloud solution designed specifically for peer-to-peer event fundraising.

Blackbaud TeamRaiser® is the industry’s most comprehensive peer-to-peer fundraising event solution.

Powering thousands of major events each year, TeamRaiser allows nonprofits’ supporters to create personal or team fundraising web pages and send email donation appeals in support of events such as walks, runs and rides.

JustGiving® from Blackbaud® is one of the world's leading social platforms for giving.

JustGiving provides world-class technology and innovative tools to connect people with the causes they care about.

By making giving more simple, social and rewarding, this platform helps all causes, charities and people in need to reach more people and raise more money.

Blackbaud Fundraiser Performance Management™ is a multi-pronged solution that combines easy to use data-driven software for fundraisers and managers, predictive modeling insights, and high-touch strategic consulting.

Built for higher education institutions, healthcare and large nonprofit organizations, the SaaS tools increase transparency into fundraising performance, and direct fundraiser and talent manager action.

Both fundraisers and leaders benefit from the tailored consulting to address weaknesses and enhance strengths to comprehensively improve the fundraising team performance.

JustGiving® from Blackbaud® is a world-class social fundraising platform for online peer-to-peer giving.

JustGiving provides innovative tools enabling individuals to engage their own peer networks to raise donations directly for the causes they care most about.

By making giving simpler and putting storytelling in the hands of fundraisers, JustGiving helps individuals reach more people to raise more money for charities of all sizes.

Blackbaud Fundraiser Performance Management™ is a multi-pronged solution that augments the capabilities of an organization’s primary database with flexible, detailed and transparent goal and action tracking.

Built for higher education institutions, healthcare and large nonprofit organizations with structured gift officer teams, the solution combines a dedicated SaaS platform for gift officer tracking with a dedicated business consultant.

Both fundraisers and leaders benefit from tailored consulting to address weaknesses and enhance strengths to comprehensively improve fundraising team performance.

2024 Form 10-K

Blackbaud, Inc.

Blackbaud Altru® is a cloud solution that helps arts and cultural organizations consolidate admissions, membership, fundraising, merchandise, marketing and more, giving users a comprehensive view of their supporters.

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Blackbaud Volunteer Network Fundraising helps institutions manage volunteer fundraising campaigns with tools for project management, communication and reporting.

2023 Form 10-K

Blackbaud, Inc.

Financial Management

Blackbaud Financial Edge NXT® is the first-of-its-kind cloud accounting solution for nonprofits that is intuitive, fully integrated, and built the way nonprofits need it.

Blackbaud Financial Edge NXT is advanced technology with powerful reporting tools to help accounting teams drive transparency, stewardship, and compliance while enabling them to seamlessly manage transactions and eliminate manual processes.

It seamlessly integrates with Raiser's Edge NXT to simplify gift entry processing and relates information from both systems in an informative manner to eliminate redundant tasks and manual processes.

Financial Edge NXT provides nonprofit organizations with the means to help manage fiscal and fiduciary responsibility, enabling them to be more accountable to their constituents.

Blackbaud Financial Edge NXT® is the market leading solution for fund and sub fund accounting to ensure stewardship for donated funds and compliance for government grants and contracts.

Blackbaud Financial Edge NXT has powerful reporting tools to help finance teams drive transparency and open modern APIs to support data integrations or enhanced workflows.

It seamlessly integrates with multiple Blackbaud products including Raiser's Edge NXT, Blackbaud Tuition Management, Blackbaud Billing Management and Blackbaud Grantmaking so nonprofit organizations can connect their business offices and workflows across the organization.

Financial Edge NXT eliminates redundant tasks and manual processes across the organization and within the financial office itself through Payment Assistant, native functionality for automated bill pay and Expense Management, functionality for submission of expenses.

Blackbaud Purchase Cards provide an efficient and convenient alternative to traditional procurement methods and paper-based payables processes such as checks, purchase orders and invoices for travel and operational purchases.

Organizations can also set spend controls for individual cardholders, track business expenses across the organization and ensure that policies are being enforced—all managed online and integrated with Blackbaud Financial Edge NXT.

Blackbaud Tuition Management™ benefits schools by giving administrators better access to financial data and payment services, and by giving parents more ways to remit tuition payments.

The solution helps ease the burden for administrative staff by offering invoicing, payment processing, customer service, enhanced communication with parents and later payer follow-up services.

The solution is fully integrated with Blackbaud Financial Edge NXT and helps ease the burden for administrative staff by offering invoicing, payment processing, customer service, enhanced communication with parents and later payer follow-up services.

Blackbaud Financial Aid Management™ offers schools the ability to accept online, customized applications for financial aid and to make better financial aid decisions with a proprietary Hobbies, Interest and Lifestyles ("HIL") profile.

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Grant and Award Management

Blackbaud Grantmaking™ is a modern cloud solution, built on our Blackbaud SKY Platform, that supports the end-to-end grantmaking process from application through review and resolution.

Blackbaud Grantmaking™ is a modern cloud solution that supports the end-to-end grantmaking process from application through review and resolution.

Blackbaud Grantmaking provides core functionality to efficiently disperse funds, maintain compliance with due diligence requirements and measure and demonstrate impact.

The system has collaborative tools to help strengthen relationships with grantees and other community partners.

Coupled with Blackbaud Outcomes™, funders and nonprofits are empowered to collaborate around their intended outcomes and work together to achieve impact.

Blackbaud Grantmaking supports collaboration between funders and nonprofits around intended outcomes to drive desired impact.

Both the funder and the nonprofit can tell an impact story using ROI-focused results and a common outcomes measurement language.

Blackbaud Award Management™ is a comprehensive, integrated scholarship management platform for higher education and K-12 institutions and foundations, allowing students to apply for all awards using one intuitive and streamlined application process and eliminating many time-consuming administrative tasks.

2024 Form 10-K

Blackbaud, Inc.

process and eliminating many time-consuming administrative tasks.

This leads to improved awarding, reporting, compliance, communication and stewardship.

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It allows users to share material and contribute content across an entire school community.

2023 Form 10-K

Blackbaud, Inc.

Social Responsibility and ESG

Social Responsibility, Employee Giving and Volunteering

YourCause GrantsConnect® and YourCause CSRconnect® are cloud solutions for employee giving, volunteering, and grantmaking used to support corporate philanthropy by building meaningful connections between corporations, employees and nonprofits.

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overall ability to attract employees and customers alike by strengthening a company's reputation.

EVERFI® from Blackbaud ® delivers educational content that transforms what is possible for learners while enabling companies to achieve their social impact and business goals.

EVERFI’s robust library of courses connect students with real-world skills to navigate life’s most important challenges, from financial capability to mental wellness — all made possible through the generous support of brands that believe in the lasting results of community investment.

Trusted by educators at over 25,000 K-12 schools, EVERFI’s curriculum reaches over 7 million students a year.

Thousands of the world’s leading brands have engaged with their communities and achieved their social impact goals by sponsoring EVERFI’s trusted courses to empower students with the knowledge they need to succeed in life.

Blackbaud Impact Edge™ is an AI-powered solution designed for social impact reporting and storytelling, tailored for corporate social responsibility (CSR) and social impact teams of all sizes.

This innovative technology utilizes responsible generative AI to help impact professionals create a compelling picture of their organization’s social impact.

It seamlessly integrates data captured safely and securely from employee engagement programs, philanthropic initiatives, educational projects, and other trusted external sources.

Payment Services

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We also provide our K-12 private school customers with student tuition payment processing services.

Data Intelligence

Our data intelligence offerings provide solutions for data health, insights and performance, enabling nonprofits to define effective campaign strategies and maximize fundraising results.

Our data intelligence offerings provide solutions for data health, predictive insights and fundraising performance, enabling nonprofits to define effective campaign strategies and maximize fundraising results.

These services either integrate with or are already integrated into our software solutions to give our customers a comprehensive view of their supporters and the market and provide information essential to making well-informed operating decisions.

Blackbaud’s Intelligence for Good® is our comprehensive strategy to deliver artificial intelligence that is accessible, powerful and responsible.

Our artificial intelligence capabilities enable social impact organizations to transform data into insights and outcomes.

Blackbaud’s Intelligence for Good® is our comprehensive strategy to deliver AI that is accessible, powerful and responsible.

Our AI capabilities enable social impact organizations to transform data into insights and outcomes.

Blackbaud's data intelligence solutions and services use data science and AI to turn customer data into valuable insights that inform decision-making and help them achieve their goals efficiently.

Blackbaud's data intelligence portfolio consists of three key outcome areas:

2024 Form 10-K

Blackbaud, Inc.

Data Health solutions enhance and maintain constituent data so the customer is always working with accurate and up-to-date information.

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identifying outdated or invalid constituent addresses in the database and making corrections based on United States Postal Service data and using name and address matching to append additional contact or demographic data points to constituent records to support better segmentation and engagement.

Insights inform strategic decision-making and actions that increase efficiency and drive successful outcomes.

Predictive Insights inform strategic decision-making and actions that increase efficiency and drive successful outcomes.

Insights are extracted by combining customer data with licensed and proprietary data before leveraging advanced AI capabilities and expertise from Blackbaud’s dedicated team of data scientists.

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predictive modeling that indicates the likelihood and capacity of a constituent making a gift, wealth screening software that uses publicly available records to build detailed wealth profiles of constituents and persona cluster segmentation that groups constituents based on shared traits with guidance for optimizing messaging to each group.

2023 Form 10-K

Blackbaud, Inc.

Performance solutions help customers to assess their fundraising performance across donor segments, benchmark themselves against peer organizations and understand industry trends.

Fundraising Performance solutions help customers to assess their fundraising performance across donor segments, benchmark themselves against peer organizations and understand industry trends.

These solutions provide a holistic view of donor performance that goes beyond standard campaign-based reporting, with key performance indicators related to acquisition, upgrading, retention and reactivation.

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Our Customer Success organization is responsible for ensuring our customers achieve their desired outcomes through Blackbaud solutions, starting at onboarding and continuing through the customer lifecycle.

Our Customer Success team develops and fosters relationships within all levels of the customer organization to build more demonstrated value in our solutions and services, while helping customers achieve their desired outcomes.

Our Customer Success team develops and fosters relationships within all levels of the customer organization to help ensure that customers get the most value out of our solutions and services, while helping them achieve their desired outcomes.

Our customer success resources work to proactively communicate to drive overall satisfaction and retention of our customers' business.

They work to collect and analyze actionable information, whether that is through direct customer relationships or through aggregated analytics that drives future one-to-one or one-to-many interactions.

They work to collect and analyze actionable information, whether that is through direct customer relationships or through aggregated analytics that drive future one-to-one or one-to-many interactions.

Their goal is to partner with customers to ensure that they are fully engaged and have an advocate within Blackbaud who works to meet their needs.

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• Data conversion, business process analysis and application customization;

• Database merging and enrichment, and secure credit card transaction processing;

• Database merging and enrichment;

• Secure credit card transaction processing;

• Database production activities;

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• Outcome-based and prescriptive services.

In addition, we, and our delivery partners, apply our industry knowledge and experience, combined with expert knowledge of our solutions, to evaluate an organization's needs and consult on how to improve a business process.

We provide a variety of onsite, instructor-led online and on-demand training services to our customers on our solutions and application of best practices.

This includes our highly-rated Blackbaud University curriculum.

Blackbaud University provides certifications for our products and industry best practices.

These certifications serve as important catalysts for professional growth in the nonprofit industry.

Our instructors and designers have deep knowledge in the social impact arena and in the use of our solutions.

Instructor-led courses are designed to include hands-on lab exercises, as well as course materials with examples and problems to solve.

2024 Form 10-K

Blackbaud, Inc.

Blackbaud University helps organizations unlock the full potential of their solutions.

Our training emphasizes newly released features and real-world application, to help customers build confidence and optimize the use of Blackbaud solutions.

Our array of learning modalities makes it easy for users to take training that fits their schedule, whether quickly upskilling new hires or expanding the knowledge and efficiency of existing staff.

This expertly designed product training empowers users to learn fast and work smart!

Millions of people across more than 100 countries connect, give, learn and engage through Blackbaud platforms.

During 2023, we had nearly 100,000 customers that paid Blackbaud through transactional fees and more than 40,000 customers with contractual billing arrangements.

During 2024, we had nearly 100,000 customers that paid Blackbaud through transactional fees and approximately 40,000 customers with contractual billing arrangements.

Our largest single customer accounted for less than 1% of our 2024 consolidated revenue.

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In addition, lead generation is supplemented by our customer success organization via employee-generated sales leads.

These sales and customer success professionals are primarily located throughout the United States, the U.K., Canada and Australia.

Our partner program also includes optional engagements around referrals, technical integrations, and implementation services which also support and supplement our go-to-market efforts by promoting customer choice and facilitating extensible capabilities.

These sales, partners and customer success professionals are primarily located throughout the United States, the U.K., Canada and Australia.

As of December 31, 2024, we had approximately 210 direct sales employees.

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Our digital demand generation motion focuses on targeted account-based marketing plays, as well as intent-based programs including paid search, retargeting, social and content syndication programs.

We supplement the digital motion with our annual user conference, bbcon ® (which was held in November 2023 in-person for the first time since the pandemic), select participation at virtual and in-person third-party trade shows, technical conferences, and technology seminars.

We supplement the digital motion with our annual user conference, bbcon ® , select participation at virtual and in-person third-party trade shows, technical conferences, and technology seminars.

We also target publication of our thought leadership content and position our subject matter experts in industry journals and publications.

We have a large base of loyal customers and strategic partners that provide references and recommendations often featured in our advertising and promotional activities.

2024 Form 10-K

Blackbaud, Inc.

The market for software and related services targeting philanthropic-focused for-profit and nonprofit organizations is competitive and highly fragmented.

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In parallel, as software development evolves from a highly-complex tradecraft with nuanced understanding of architectural patterns and discrete languages, to click-to-code and drag-and-drop development with natively cloud-based infrastructure, it becomes easier for competitors to quickly spin up basic applications to solve common problems.

However, once basic needs are met, programs unique to social impact organizations like the stewardship of relationships and partnerships critical to major gift fundraising, community and employee education;

the cultivation and management of gifts, grants and K12 digital education sponsorship;

However, once basic needs are met, programs unique to social impact organizations like the stewardship of relationships and partnerships critical to major gift fundraising and community education;

the cultivation and management of gifts and grants sponsorship;

the intricacies of not-for-profit specific fund accounting;

the multi-level networking required for peer-to-peer activism and employee engagement;

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These are typically offered by vendors who may have deep industry expertise but may not have the resources to expand beyond a specialized area.

We believe we compete against these solutions by offering a set of integrated solutions rather than a single point solution, which we believe improves the overall customer experience.

We believe we compete against these solutions by offering a set of integrated solutions rather than a single point solution, which we believe improves the overall customer experience and reduces organizational risk.

In addition, our open platform allows integration to specialized applications so the opportunity for disruption from these competitors is minimized.

2023 Form 10-K

Blackbaud, Inc.

• Vertical-specific solutions are offered by competitors seeking to meet the enterprise-wide needs of a specific sub-segment of the social impact community.

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These products generally do not satisfy the needs of nonprofits from end-to-end as they were not designed to support the specific needs of nonprofits during the original architecture, design, and requirements elicitation phases;

therefore, we believe that because these products were not originally designed for nonprofits, they are not yet fully capable of meeting market needs without significant customization.

The significant customization required to transform general business products into nonprofit solutions often requires the use of consultants to guide the implementation, without which, leave the adoption of general business software limited to very basic operations and simple needs.

and several of the products introduced by general business software vendors have been subsequently pulled from market based on lack of adoption and customer satisfaction.

We believe that the products that remain are not yet fully capable of meeting market needs without significant customization to transform general business products into nonprofit solutions often requiring the use of consultants to guide the implementation, without which, leave the adoption of general business software limited to very basic operations and simple needs.

We believe our solutions compete successfully against general business software as a nonprofit’s needs grow more complex.

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We believe we compete well in this market through a combination of positive brand recognition among all three of these groups and the combination of our consumer- and organization-oriented tools relative to those of the competition.

2024 Form 10-K

Blackbaud, Inc.

Less frequently, we compete with providers of traditional, non-automated fundraising service providers, including parties providing services in support of traditional direct mail or email campaigns, special events fundraising, peer-to-peer, telemarketing and personal solicitations.

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SKY UX allows developers to create applications with the same consistent, cohesive user interface as Blackbaud’s native solutions using an open-source framework that implements Blackbaud design patterns and provides guidelines and tooling for the entire application lifecycle.

Our Intelligence for Good® strategy affirms our commitment to AI that is convenient, powerful and responsible.

The development strategy for all Blackbaud cloud solutions emphasizes:

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Scalable architecture and the performance, capacity and load balancing of our customers' industry-standard web servers and databases ensure that applications can scale to meet the needs of large organizations.

2023 Form 10-K

Blackbaud, Inc.

Intellectual Property and Other Proprietary Rights

To protect our intellectual property, we rely on a combination of patent, trademark, copyright and trade secret laws in various jurisdictions, as well as employee and third-party nondisclosure agreements and confidentiality procedures.

We maintain many trademarks, including, but not limited to “Blackbaud,” “Raiser's Edge NXT” and “Luminate.” We currently have two active patents on our technology and have one pending patent application.

We maintain many trademarks, including, but not limited to “Blackbaud,” “Raiser's Edge NXT” and “Luminate.” We currently have one active patent on our technology and have one pending patent application.

Human Capital Resources

As of December 31, 2024, we had approximately 2,600 employees, none of whom are represented by unions or are covered by collective bargaining agreements.

This number reflects the decrease in headcount following our disposition of our EVERFI business in December 2024.

We are not involved in any material disputes with any of our employees, and we believe that relations with our employees are strong.

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Blackbaud also attracts and promotes talented employees through effective and targeted recruiting strategies.

In 2020, Blackbaud announced the launch of a temporary workforce strategy, allowing employees to work from home or other geographic locations within the country to further support their overall well-being during the COVID-19 pandemic.

In 2021, we formally rolled out our Remote First Work-strategy as a company which expanded our pool of qualified applicants for roles and internal career progression and enabled Blackbaud's goal to attract and develop talent globally.

In 2021, we formally rolled out a remote work strategy which expanded our pool of qualified applicants for roles and internal career progression and enabled Blackbaud's goal to attract and develop talent globally.

We continue to find top talent that want the flexibility of this work strategy, and it serves as a cornerstone of our culture focused on trust and productivity.

Employee engagement is a focus at Blackbaud, and we continually work to understand what matters and to make our workplace better to attract, develop, and retain talent.

Every manager at Blackbaud is required to take a multi-course "Engagement Labs" training designed to equip them with the practical skills to ensure their teams are highly engaged.

Every manager at Blackbaud is required to take a multi-course

2024 Form 10-K

Blackbaud, Inc.

"Engagement Labs" training designed to equip them with the practical skills to ensure their teams are highly engaged.

We assess and measure progress on engagement and growth opportunities at the individual level through quarterly check-ins focused on impact and learnings, as well as through a global career framework that guides employee progression on both management and individual contributor career paths.

We also assess engagement on the team and company level through regular employee surveys as well as "Ask Anything" sessions with senior leaders and dedicated Q&A sessions during our global, company-wide Connect and Engage meetings.

We enable employees to have opportunities for career development through on-demand and company-led trainings in our Learning Management System platform:

Our compensation framework is designed so that employees are compensated equitably and competitively, including through base salary, variable pay, equity award opportunities and comprehensive benefit offerings.

We enable employees to have opportunities for career development through on-demand and company-led trainings via our Learning Management System platform, DevelopU.

Our compensation framework is designed so that employees are compensated equitably and competitively, through base salary, variable pay, equity award opportunities and comprehensive benefit offerings.

We also seek to support the whole person, through increased benefits and focus on overall well-being.

Our employee population has embraced a digital first mindset, and we continue to enhance our offerings and education to drive employees to make consumer driven decisions to be proactive in their healthcare journey.

Ultimately, we believe that Blackbaud is an excellent place to work because we are energized by our opportunity to fuel social impact and committed to running our business in a way that amplifies the difference we make in the world.

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We pursue sustainability, and we work every day to ensure our workplace is supportive, inclusive and engaging.

We offer an array of philanthropy programs aimed at engaging our employees as agents of good, including matching gifts, competitive grants that honor noteworthy examples of volunteerism, employee-led grant committees, skills-based volunteerism initiatives, as well as science, technology, engineering and mathematics (STEM) focused community programs.

We offer an array of philanthropy programs aimed at engaging our employees in fueling social impact, including matching gifts, competitive grants that honor noteworthy examples of volunteerism, employee-led grant committees, skills-based volunteerism initiatives, as well as science, technology, engineering and mathematics (STEM) focused community programs.

Our commitment to inclusion and sustainability supports our efforts to attract, develop and retain a high-performing employee base.

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a focus on allyship, mentoring and affinity groups.

We have 11 employee-led affinity groups, including, but not limited to those that represent veterans, LGBTQ+, women in technology, women in sales, Black employees, those interested in sustainability and those with a disability.

2023 Form 10-K

Blackbaud, Inc.

We believe we have a responsibility to act in the fight against climate change—it is both the right thing to do and necessary to ensure the future stability of our business and customers.

For these reasons, Blackbaud takes proactive measures to protect the environment, both in our internal sustainable business practices and our external engagements.

We have 11 employee-led affinity groups, including, but not limited to those that represent veterans, LGBTQ+, women in technology, women in sales, people of color, sustainability and/or those with a disability.

Blackbaud takes proactive measures to protect the environment, both in our internal sustainable business practices and our external engagements.

As we did in 2021, 2022 and 2023, in 2024 we plan to achieve carbon neutrality across our business operations.

We are committed to our continued efforts to reduce our emissions footprint and provide transparent annual social responsibility and sustainability reporting.

Blackbaud was recognized by Newsweek as one of America's Most Responsible Companies 2024, Built In's Best Places to Work, Forbes' list of America's Best Employers 2023 and won Governance Team of the Year for small to mid-cap companies in Governance Intelligence's annual Corporate Governance Awards.

Additional information related to our human capital strategy can be found in our 2022 ESG Report which is available on the Corporate Social Responsibility section of our website.

Blackbaud was recognized by USA Today as one of America’s Climate Leaders in 2024.

Blackbaud was recognized by Newsweek as one of America's Most Responsible Companies 2024, Built In's Best Places to Work 2024, Time’s list of America’s Best Mid-size Companies 2024 and was distinguished as an OutLeadership Certified Supporter and 2024 Disability Employer by Disability Solutions.

Our People and Culture Team was recognized by Phenom highlighting our talent experience with the 2024 award for Best Use of Talent Acquisition.

Additional information related to our human capital strategy can be found in our 2023 Fueling Impact Report which is available on the Corporate Social Responsibility section of our website.

Information contained on or accessible through our websites is not incorporated into, and does not form a part of, this Annual Report or any other report or document we file with the SEC, and any references to our websites are intended to be inactive textual references only.

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For a discussion of our working capital practices, see “Management’s Discussion and Analysis of Financial Conditions and Results of Operations — Liquidity and Capital Resources” in Item 7 in this report.

2024 Form 10-K

Blackbaud, Inc.

Available Information

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Olson 61 Senior Vice President and General Counsel

2023 Form 10-K

Blackbaud, Inc.

Gianoni joined us as Chief Executive Officer and President in January 2014 and was appointed Vice Chairman of the Board in January 2024.

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Gianoni is a member of the Board of Directors of Teradata Corporation, a publicly traded global big data analytics company, and has been Chairman of the Board since February 2020.

Gianoni has served on several nonprofit boards across several segments, including relief organizations, hospitals and higher education.

He currently is a board member of the International African American Museum and a member of the President's Advisory Group at the Medical University of South Carolina.

Gianoni has served on several nonprofit boards across several segments, including relief organizations, hospitals and higher education and he currently is a member of the President's Advisory Group at the Medical University of South Carolina.

He holds an AS in electrical engineering from Waterbury State Technical College, a BS with a business concentration from Charter Oak State College, and an MBA and an honorary Doctorate from the University of New Haven.

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He holds a BA in European Business from London Metropolitan University and an MBA from The Manchester Metropolitan University.

2024 Form 10-K

Blackbaud, Inc.

Gregoire has served as our Executive Vice President and Chief Operating Officer since July 2022.

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He holds a BS in Management from The Georgia Institute of Technology.

2023 Form 10-K

Blackbaud, Inc.

Olson joined us as Senior Vice President and General Counsel in September 2008.

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He holds a BS from Georgetown University, a JD from Dickinson School of Law and an MBA from Seton Hall University.

2024 Form 10-K

Blackbaud, Inc.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business