Charleston, SC (October 4, 2005) – Blackbaud, Inc. (Nasdaq: BLKB), the leading provider of software and related services designed specifically for nonprofit organizations, announced today that it has acquired ScanStore Limited, a document management and image retrieval company based in Staplehurst, Kent, UK.

ScanStore offers a solution that helps UK nonprofits manage the complicated indexing, storage, and retrieval of donor declarations that are required to make Gift Aid claims to Inland Revenue that are associated with charitable contributions.

"Although this is a relatively small acquisition, the addition of ScanStore to our nonprofit solution will address a critical need for UK nonprofits," said Robert J. Sywolski, chief executive officer of Blackbaud, which works with approximately 13,000 organizations, including more than 800 located in the United Kingdom. "This move is an example of our continuing commitment to provide the very best and most current tools to help our growing international customer base better enhance their effectiveness."

Blackbaud plans to market and sell the ScanStore solution within the UK both as a separate offering and as part of its integrated suite of fundraising and gift management solutions. ScanStore will be suitable for both existing users of The Raiser's Edge(r) – the company's award-winning fundraising solution – and charities using other fundraising systems and databases. This acquisition is not expected to have an impact on the company's 2005 earnings.

Increasing funds from charitable contributions In the United Kingdom, tax-paying individuals may enhance the value of their contributions to charities by submitting a Gift Aid declaration form to the organizations along with their donations. Under the Gift Aid program, the organizations are then entitled to submit requests for payment from Inland Revenue equal to 28% of the donations' value. Organizations are required to retain copies of the completed Gift Aid declaration forms for seven years in the event of an audit.

Many charities receiving a high level of donor interest in participating in this program are struggling with the management of a large volume of forms, and require a solution that simplifies the filing, storage, and retrieval process. By using ScanStore, organizations can outsource this labor-intensive task to Blackbaud and comply with Inland Revenue declaration requirements. Forms are scanned, indexed to match individual constituents, and are retrievable via a secure Internet repository. This service then allows charities to more easily comply with audit requirements and improve the effectiveness of their Gift Aid programs.

"ScanStore was developed by people who truly understand the challenges charities face in maximizing their income stream," said Camilla Sykes of WaterAid, an international charity that helps poor countries secure and maintain supplies of safe water. WaterAid relies on both ScanStore's solution and The Raiser's Edge(r) to handle its Gift Aid and fundraising management needs. "With the ScanStore solution, we save significant processing time, offering our supporters a value-for-money service while enhancing the value of each donation we receive."

About Blackbaud, Inc.

Blackbaud is the leading global provider of software and related services designed specifically for nonprofit organizations. Approximately 13,000 organizations – including the American Red Cross, Bowdoin College, the Chesapeake Bay Foundation, the Crohn's & Colitis Foundation of America, the Detroit Zoological Society, Episcopal High School, Help the Aged, the New York Philharmonic and United Way of America – use Blackbaud products and consulting services for fundraising, financial management, business intelligence, and school administration.

Blackbaud's solutions include The Raiser's Edge(r), The Financial Edge™, The Education Edge™, The Patron Edge™, Blackbaud(r) NetCommunity™, The Information Edge™, WealthPoint™, and ProspectPoint™, as well as a wide range of consulting and educational services. Founded in 1981, Blackbaud is headquartered in Charleston, South Carolina, and has operations in Toronto, Ontario; Glasgow, Scotland; and Sydney, Australia. For more information, visit www.blackbaud.com.

Blackbaud, the Blackbaud logo, The Raiser's Edge, The Financial Edge, The Education Edge, The Patron Edge, Blackbaud NetCommunity, The Information Edge, WealthPoint and ProspectPoint are trademarks or registered trademarks of Blackbaud, Inc.

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: risk associated with successful implementation of multiple integrated software products; lengthy sales and implementation cycles, particularly in larger organizations; uncertainty regarding increased business and renewals from existing customers; continued success in sales growth; adoption of our products and services by nonprofits; risks related to our dividend policy and self tender offer, including potential limitations on our ability to grow and the possibility that we might discontinue payment of dividends; economic conditions and seasonality; competition; risks associated with management of growth; risks associated with acquisitions; 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 upon request from Blackbaud's investor relations department.

Investor contact:
Timothy Dolan
Integrated Corporate Relations, Inc.
tdolan@icrinc.com
203-682-8200

Media Contacts:
Rachel Hutchisson
Blackbaud, Inc.
rachel.hutchisson@blackbaud.com
843-216-6200 x3070

Megan McDonnell
Integrated Corporate Relations, Inc.
mmcdonnell@icrinc.com
203-682-8200