Blackbaud, Inc
Blackbaud builds cloud software for the social impact economy, with products used by nonprofits, schools, foundations, and corporate social responsibility teams to raise funds, manage grants, run finance operations, and administer education workflows. Its platform combines subscription software with transaction-based payment services, so revenue comes from both recurring software access and the volume of donations, tuition, and other payments processed through its systems. The company has broadened beyond fundraising into financial management, grantmaking, scholarship administration, student information, and learning management, creating a more integrated operating system for mission-driven organizations. Blackbaud is also pushing AI across its products and internal operations to improve workflow automation, customer outcomes, and operating efficiency.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueCloud tools for nonprofit fundraising, donor communications, and online giving workflows.
Accounting, fund, sub-fund, expense, and procurement software for nonprofit finance teams.
Software for tuition billing, student records, and learning management in schools.
Platforms for grantmaking, scholarship administration, and outcomes tracking.
Integrated donation, tuition, and transaction processing, including card and ACH payments.
Implementation, data conversion, customization, training, and customer support.
Products
Reported · share of revenue- Contractual Recurring64.0 %
- Transactional Recurring34.1 %
- One Time Services and Other2.0 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Blackbaud sells primarily to nonprofit organizations that need software to raise donations, manage constituents, process payments, and report on stewardship and compliance. A second major customer base is educational institutions, especially private schools, higher education, and K-12 organizations that use its tuition, student information, and learning management tools. Foundations and grantmakers buy its grant and award management products to administer applications, distribute funds, and measure outcomes. The company also serves corporate social responsibility users and other mission-driven organizations that need grantmaking, community investment, and impact workflows. Customers buy Blackbaud to replace manual processes with integrated cloud workflows and to connect fundraising, finance, and payment activity in one system.
Buy fundraising, donor engagement, finance, and payment tools to increase donations and manage stewardship and compliance.
Use tuition management, student information, and learning management software to run school operations and parent/student workflows.
Purchase grantmaking and award management software to administer applications, awards, due diligence, and outcomes reporting.
Use grant and community investment tools to manage CSR programs and measure social impact.
Adopt Financial Edge NXT and purchase cards to manage funds, expenses, and reporting across nonprofit finance operations.
Strategy
Blackbaud’s strategy centers on deepening its cloud platform for social impact organizations by adding AI-driven workflow automation, better analytics, and tighter product integration. Management is prioritizing new customer acquisition, cross-selling additional solutions, and improving renewals by making the platform more valuable across fundraising, finance, payments, and education workflows. The company is also focused on expanding transactional recurring revenue through payment processing, tuition, and event-related usage, which increases monetization as customer activity grows. At the same time, it is pursuing operating efficiency through workforce optimization, vendor renegotiation, office rationalization, and broader AI use to improve margins and scalability.
AI is intended to improve workflow automation, customer value, and product differentiation across the platform.
A more integrated suite increases switching costs and supports renewals across fundraising, finance, and education.
Payment and usage-based revenue can grow with donor activity, tuition payments, and event workflows.
Cost discipline and process simplification support profitability and operating leverage.
Geography
Q1/2026Blackbaud is headquartered in the United States and operates with a remote-first model, with offices and operations in the U.S., Australia, Canada, Costa Rica, India, and the United Kingdom. Management says the company supports users in more than 100 countries, but it does not expect meaningful customer sales in India in the near term even as it expands delivery and talent there. The business is therefore geographically concentrated in North America and other English-speaking markets, while India is mainly a cost and talent hub rather than a revenue market. This footprint matters because the company’s software and support delivery can be scaled internationally, but demand remains tied to nonprofit, education, and social-impact spending patterns in its core markets.
Share of the revenue the company reports by geography.
Risks
Blackbaud faces execution risk from its rapid adoption of AI, because the technology is still evolving and can create security, legal, ethical, and reputational issues if outputs are inaccurate or if third-party providers mishandle data. As a software vendor serving nonprofits and schools, it is also exposed to cybersecurity and privacy risks because its systems handle sensitive donor, student, and financial information. A meaningful part of revenue depends on transaction volumes, so changes in charitable giving, tuition activity, macroeconomic conditions, and seasonality can affect payment-related revenue. The company also depends on continued cloud adoption, renewals, and successful product integration; if customers slow spending or migrate to competitors, recurring revenue growth could weaken. In addition, its international delivery footprint and remote-first model create operational complexity, while cost-cutting and restructuring can disrupt service quality if not managed carefully.
- Cybersecurity and data privacy breachesImpact: HighLikelihood: High
The company processes sensitive donor, student, and financial data, so a breach could damage trust and trigger liability.
Exposure: Cloud software and payment services
- AI-related operational and reputational riskImpact: HighLikelihood: Medium
Blackbaud is embedding generative, predictive, interactive, and agentic AI into products and internal workflows, which can create errors, opaque decisions, and legal exposure.
Exposure: Product features and internal operations
- Customer retention and competitive pressureImpact: MediumLikelihood: Medium
Recurring revenue depends on renewals and adoption of integrated modules; weaker product value or competition can slow growth.
Exposure: Subscription software base
- Transaction volume volatilityImpact: Medium
Payment and usage-based revenue depends on charitable giving, tuition payments, and event activity, which can vary with macro conditions and seasonality.
Exposure: Integrated payments and transactional recurring revenue
- Operational disruption from restructuringImpact: Medium
Office rationalization, vendor renegotiation, and workforce changes can reduce costs but may also affect service delivery if poorly executed.
Exposure
Accounting
Judgemental itemsBlackbaud sells subscription software plus payment and usage-based services, so the timing of recognized revenue depends on contract structure and usage volume.
Impact: Quarterly revenue comparability and deferred revenue balances
The company has acquisition-related intangibles and disclosed an EVERFI impairment, which can materially change operating income.
Impact: Operating profit and non-cash charges
The company carries debt and has swap agreements, which affect interest expense and future cash interest obligations.
Impact: Financing costs and cash flow
Office lease rationalization and workforce changes can create lease-related and restructuring charges that affect reported margins.
Impact: Operating expenses and one-time items
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Last updated: 24/09/2026