The NonProfit Times - July 1, 2008 - (Page 25)

BLACKBAUD’S BID Continued from page 7 is used by such organizations as American Lung Association, Big Brothers Big Sisters of America, International Fund for Animal Welfare, Lance Armstrong Foundation and Sesame Workshop to manage online fundraising events and in 2007 processed more than $400 million in online gifts.Almost 2,300 organizations run their Web presence on Sphere®, which accounted for a majority of Kintera’s $45 million in revenue last year. Kintera, which went on a buying spree of its own when it went public and before those purchases got the firm into financial trouble, also offers wealth profiling and screening services as well as an accounting software solution, both similar to Blackbaud’s offering. Bringing the two companies together is expected to reduce the combined, projected research and development spending by $2 million annually, Chardon said, through decreases in future hiring. Another $1 million in annual savings is expected from Kintera’s public company costs. Blackbaud bought online donor management and advocacy tool eTapestry last summer for $24.8 million and up to another $1.5 million under a two-year, stockbased performance incentive arrangement. eTapestry had unaudited revenue of approximately $7 million for 2006, according to a Blackbaud spokesperson. Blackbaud also financed that deal through a combination of cash and borrowing from its credit facility. eTapestry, based just outside Indianapolis, Ind., developed one of the first SaaS offerings built specifically for nonprofits. SaaS means that the software resides at the vendor and all transactions are done online. eTapestry reportedly had more than 3,000 customers of its on-demand services, with donor records ranging from several hundred per organization to more than 300,000. Earlier in 2007, Blackbaud acquired Target Analysis Group for $60 million. The Cambridge, Mass.-based Target has donor management software but also has a donor research, database operation and fundraising consultancy. During 2006, the firm purchased software provider and competitor Campagne Associates for more than $6 million. The largest purchase prior to that was in 1997 when it acquired Master Software Corp. Master Software, coincidentally, was owned by the same people who founded eTapestry a few years later when their non-compete agreement expired. NPT NPT Senior Editor Mark Hrywna contributed to this story. ACCOUNTING Continued from page 16 ties and the first four phases of the project before beginning work on the applicability of the conceptual framework to notfor-profit entities. If the AICPA and FASB have nonprofits on their radar, there is no escape. THE BUMPY ROAD TO A FLAT WORLD Economics, communications, man-made and natural disasters know no borders. Fortunately,the same holds true for charity and good deeds. Many U.S. and foreign-based charitable nonprofit organizations have international operations and provide goods and services worldwide. Billions of dollars of cash,food,medicine,and in-kind services move in an instant when there is a catastrophe somewhere in the world. According to the Urban Institute in Washington, D.C., nonprofit groups ac- count for 5 percent of the U.S. gross domestic product and contribute $666 billion to the economy through their actions. Imagine those numbers worldwide. What happens when a U.S. nonprofit sends millions of dollars (accounted for under GAAP) to another country (accounted for under IFRS) for earthquake relief? What type of financial reports does the U.S. organization receive to analyze what has been done with the money? Will they get reports in IFRS? Will they have to translate this to U.S. GAAP for compliance reporting, audits, and their donors? NOT IF, BUT WHEN The nonprofit community has moved towards better accounting practices, stronger governance standards, and an appreciation of solid financial reporting.With the revised Form 990, the sector is heading towards greater transparency and accountability. IFRS is coming. Exactly when is unclear. At this stage the best you can do is follow the latest developments of IFRS, expect more disclosures in your financial information, and feel good about all you know about GAAP. NPT Harmon Burstyn, CPA, is principal of Harmon Burstyn CPA, in Walnut Creek, Calif. His email is hburstyn@harmonburstyncpa.com nptimes.com 40 CONFERENCE & EXPOSITION TH ANNUAL The Premier Conference for Religious Fundraisers September 28 – October 1, 2008 Pre-conference workshops on September 27 Disney’s Contemporary Resort, Lake Buena Vista, FL Extra in honoSavings r of ou r 40 Annive th rsar y! This is the Conference for You: Religious Communities, Dioceses, Seminaries, Catholic Charities, Social Service Agencies, Mission Groups, Shrines, Health Care Organizations, Retreat Centers, Schools For more information and to register, visit: www.ncdc.org/npt NATIONAL CATHOLIC DEVELOPMENT CONFERENCE 888.TRY.NCDC Become an NCDC member today and save on your conference registration! JULY 1, 2008 THE NONPROFIT TIMES www.nptimes.com 25 http://nptimes.com http://www.nptimes.com http://www.nptjobs.com http://www.ncdc.org/npt http://www.ncdc.org/npt http://www.exemptmagazine.com http://www.nptimes.com http://www.nptimes.com http://www.nptimes.com

Table of Contents Feed for the Digital Edition of The NonProfit Times - July 1, 2008

The NonProfit Times - July 1, 2008 Time to Let GO Sparks Flying From Blackbaud's Bid For Kintera Holiday Jeer Contents Who...When...Where...How...What? The Wrong Arguments Calendar Measure the Unmeasureable Getting Good Advice We Barely Got to Know You Special Report: Giving USA Shows Bequests, Foundations Boosted Otherwise Flat Giving to 306 Billion Dollars National Benchmarking Nothing Is Forever Diversified Planet Business Briefs NPT Jobs Resource Directory Bridge Map Insert

The NonProfit Times - July 1, 2008

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