8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) March 7, 2005

BLACKBAUD, INC.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation)

000-50600	11-2617163
(Commission File Number)	(IRS Employer ID Number)

2000 Daniel Island Drive, Charleston, South Carolina 29492

(Address of principal executive offices)                    (Zip Code)

Registrant’s telephone number, including area code       (843) 216-6200

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure

Beginning on March 7, 2005, the Chief Executive Officer and Chief Financial Officer of Blackbaud plan to make a presentation regarding its business to various members of the investment community. A copy of the presentation is filed with this report as Exhibit 99.1.

Blackbaud’s investor presentation includes disclosure of selected non-GAAP financial measures, including pro forma gross margin, pro forma operating income and margin, pro forma net income and pro forma earnings per share. Blackbaud utilizes these non-GAAP financial measures internally in analyzing its financial results, and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Blackbaud’s ongoing operational performance. Blackbaud believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial results with other companies in Blackbaud’s industry, many of which disclose similar non-GAAP financial measures to investors. As noted in the presentation, the non-GAAP financial results discussed above exclude the impact of costs associated with the Blackbaud’s IPO (completed on July 22, 2004), amortization of intangibles arising from business combinations and the expensing of stock option compensation.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measure, as provided in Exhibit 99.2 filed herewith.

The information furnished in Items 7.01 and 9.01 of this report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific release in such a filing.

Item 9.01 Financial Statements and Exhibits

Exhibit 99.1	Presentation of Blackbaud, Inc.
Exhibit 99.2	Blackbaud’s reconciliation of non-GAAP financial measures to most directly comparable GAAP financial measures.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	BLACKBAUD, INC.
Date: March 7, 2005	/s/ Timothy V. Williams
	Timothy V. Williams,
	Vice President and Chief Financial Officer

EX-99.1

Blackbaud Presentation Bob Sywolski/Tim Williams

Forward Looking Statements This presentation contains "forward-looking statements". These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We caution you not to place undue reliance on forward-looking statements, which reflect our analysis only and speak only as of the date of this presentation. We undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances. This presentation contains trade names, trademarks and service marks of other companies. We do not intend our use or display of other parties' trade names, trademarks & service marks to imply a relationship with, or endorsement or sponsorship of, these other parties.

Company Overview Dominant global provider of software/services to the non profit sector Helping customers Increase donations Improve communications Optimize financial efficiency and compliance 25 Years of domain expertise and 13,000 customers Solid financial performance 2004 Rev - $139M + 18% (4yr CAGR 13.4%) 2004 Pro Forma Op Inc $40M + 17% (4yr CAGR 20.5%) Attractive Revenue model 50% from software/services (23% growth in 2004) 50% from recurring sources (17% growth in 2004)

Investment Highlights Multi-billion dollar market with consistent long-term growth trends Dominant market share driven by Industry leading core back-end systems critical mass of 13,000 customers and domain expertise Solid track record with new products Customer base supports strong back-to-base sales Attractive financial model with Revenue predictability Attractive margins Sizable cash flow Experienced management team with solid operational track record

Nonprofit Market is Large and Growing Over 1.5 million NPOs in the U.S. (360,000 addressable market) $241 billion annual contributions $600 billion in fees for services Over 1.5 million NPOs internationally Revenue for filing NPOs represents 11.6% of U.S. GDP Giving Levels Line 9 Line 10 Line 11 Line 12 Line 13 Line 14 Line 15 Line 16 62 11.83 63 13.14 64 13.6 65 14.71 66 15.79 67 17.03 68 18.85 69 20.66 70 21.04 71 23.44 72 24.44 73 25.59 74 26.88 75 28.56 76 31.85 77 35.21 78 38.57 79 43.11 80 48.63 81 55.28 82 59.11 83 63.21 84 68.58 85 71.69 86 83.25 87 82.2 88 88.04 89 98.43 90 101.37 91 105.02 92 110.4 93 116.54 94 119.17 95 124 96 138.55 97 159.37 98 177.44 99 201.59 0 228.25 1 238.46 3 240.92 U.S. nonprofit contributions ($ billions) 8% CAGR Over $841 billion of annual total spend Source: Giving USA

$500K-$2.4M $100M+ $2.5M-$9.9M <$500K $10M-$99.9M Source: Company estimates Annual Revenue of Target Market $6.0 Billion Addressable Domestic Market # U.S. Orgs 2,165 20,076 43,086 209,639 85,190 Estimated revenue Opportunity for Blackbaud 2,000 Orgs @ $750K $1.5 BN 20,000 Orgs @ $75K 40,000 Orgs @ $20K 80,000 Orgs @ $15K 100,000 Orgs @ $10K $1.5 BN $0.8 BN $1.2 BN $1.0 BN The Domestic Nonprofit Market Opportunity

Raising more money and improving relationships with donors/constituents Managing finances with enhanced accountability and compliance Improving operational efficiency Nonprofits are under pressure to improve performance and operate more like for profit businesses Nonprofits Face Unique Challenges

Best-of-breed functionality ~ 86% of sales (2004 Bookings) - growing at 17% With tight integration between apps as differentiator - only vendor in the space to offer 'complete solution' Drives new customer growth and lays foundation for back-to-base sales > 3,000 customers > 9,000 customers ~ 750 customers Core Offerings Address these Challenges

Online community / content management system with extensions to each major product line Prospect Analysis tools Ticketing Mgmt Web donor relationship and fundraising tool Data analysis tools Constituent Record Analysis Comprehensive ticketing solution which allows holistic view of patrons, visitors and donors. Improves fund raising effectiveness by analyzing and revealing prospects likelihood and capacity to give Business Intelligence for nonprofits Helps nonprofits improve data accuracy by cleansing and appending information to their records New Offerings ... with tight integration to core products Data Enrichment Services

INTERNET The Raiser's Edge(r) The Financial Edge(tm) The Information Edge(tm) The Education Edge(tm) The Patron Edge(tm) RE: Anywhere(tm) RE: NetSolutions(tm) Blackbaud NetCommunity(tm) WealthPoint Online(tm) Online Requisitions Mission Performance Web Publishing Patron Edge Online(tm) Faculty Access for the Web(tm) NetClassroom(tm) Donors Members Volunteers Event Participants Remote Development Staff Executives Alumni Class Agents Gift Officers Donors Members Executives Prospect Researchers Gift Officers Teachers Advisors Administrators Parents Students Patrons Ticket Buyers Accountants Staff Providers Executives Org-wide Staff & Managers Constituents

Blackbaud Solutions Stack

Healthcare Family / Human Services Schools K-12 Higher Education Religious Recreational / Social Cultural Large and Diversified Customer Base Large and Diversified Customer Base

Internet Tele- prospecting Conferences & Seminars Referrals Direct Mail 30 Lead Qualification Reps 40,000+ Leads Direct Sales (Mid-market) Key Account Sales Inside Sales (Installed Base) Channel Partners $25k ASP and Several Thousand Transactions per Quarter Diversified Sales Channel Drives High Volume Strategy

Why Blackbaud Wins Focus on nonprofit customer needs for 25 years and extensive professional services capabilities Nonprofit industry expertise Financial strength and scale End-to End, Integrated Suite Proven track record of reliability and customer service We own the "backend" and provide analytics, ticketing, web support, Internet apps and professional services Largest installed customer base of over 13,000 nonprofits Customers depend on Blackbaud stability and longevity

Market Leadership and Universal Brand Recognition Sources of Competition Internally developed solutions are the most common competition 3rd party competition comes from small, private vendors and divisions of larger orgs Blackbaud dominates Fundraising and leads all major application categories Fundraising Customers Blackbaud 4500 Campagne 3000 Softerware (Donerperfect) 2500 eTapestry 2100 JSI (Sage) 1500 BSR (SunGard) 200 TargetSoftware 100 Blackbaud Campagne Softerware (Donorperfect) eTapestry JSI (Sage) BSR (SunGard) TargetSoftware

Predictability Recurring sources are 50% of rev Greater than 90% renewal rates 2004 - Maintenance 12% growth Subscription 82% growth Attractive Growth Software/Services are 50% of rev "Core" + "New Offerings" 2004 - Software 19% growth Services 25% growth Attractive Business and Revenue Model

Mid-90's maintenance renewal rates creates strong recurring revenue base 13.4% CAGR Total Revenue ($ millions) Solid Revenue Growth

Note: Results exclude stock option compensation expense, amortization of intangibles and IPO costs. $ millions Consistent Growth in Profitability 2001 2002 2003 2004 $40 29% $33 $29 28% $19 23% 2000 Margin Operating Income "Pro Forma" Operating Income 20.5% CAGR 29%

2004 Performance ($millions) Note: Results exclude stock option compensation expense, amortization of intangibles and IPO related costs. Q4 2004A $6.8 $35.7 $11.3 68% $9.9 28% $6.2 $0.13 YoY Growth 19% 17% 18% 17% 24% Full Yr 2004A $25.4 $138.7 $41.2 70% $40.0 29% $24.7 $0.54 License revenue Total revenue "Pro forma" gross profit % margin "Pro forma" operating income % margin "Pro forma" net income "Pro forma" earnings per share YoY Growth 15% 17% 14% 16% 15%

Capital Management Program Announced February 1 Driven by strategy to maximize use of cash and returns for investors Dividend and share buyback $.20/share annual cash dividend; $.05/share paid February 28 to shareholders of record February 14 $35 million share buyback authorization effective February 4 Cash resources more than adequate $42 million at December 31 $30 million line of credit available Cash generating capabilities are significant $40 million free cash flow in 2004, +23% vs. 2003 Infrastructure and working capital needs are insignificant DSO's of ~ 40 days Deferred tax asset provides $7.7 million of annual tax savings, available through 2014

Summary Multi-billion dollar market opportunity with consistent long-term growth trends Dominant market share position supported by critical mass and domain expertise Industry leader in core, back-end systems and track record of launching new products to drive growth Growing relationships with 13,000 customers Attractive financial model highlighted by revenue predictability, attractive margins and sizable cash flow Experienced management team with solid operational track record

Blackbaud Presentation Bob Sywolski/Tim Williams

EX-99.2

Exhibit 99.2

BLACKBAUD, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)
(In thousands, except per share amounts)

	Twelve Months Ended
	December 31,
	2004			2003
GAAP revenue	$	138,745		$	118,093
GAAP gross margin	$	98,206		$	78,719
Pro forma adjustments:
Amortization of deferred stock compensation		(631	)		3,847
Pro forma gross profit	$	97,575		$	82,566
Pro forma gross margin		70	%		70	%
GAAP income from operations	$	19,157		$	5,696
Pro forma adjustments:
Amortization of deferred stock compensation		18,379			27,538
Costs of initial public offering		2,455			—
Amortization of intangibles from business combinations		32			848
Total pro forma adjustments		20,866			28,386
Pro forma income from operations	$	40,023		$	34,082
Pro forma operating margin		29	%		29	%
GAAP net income (loss)	$	12,641		$	(478	)
Pro forma adjustments:
Total pro forma adjustments affecting income from operations		20,866			28,386
Tax impact related to pro forma adjustments		(8,840	)		(8,000	)
Pro forma net income	$	24,667		$	19,908
GAAP shares used in computing diluted income (loss) per share		46,541			42,396
Pro forma adjustments:
Incremental shares related to stock options		(508	)		2,548
Shares used in computing pro forma earnings per diluted share		46,033			44,944
Pro forma earnings per diluted share	$	0.54		$	0.44