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Posts Tagged ‘M&A’

Krista K. Endsley
SVP and GM, Nonprofit Solutions
Sage Business Solutions

Like many of you in the nonprofit industry, I heard about Blackbaud’s acquisition of Convio in much the same way, on my Blackberry in the early hours of the morning on Tuesday.   Since then I have received a ton of questions from our partners, employees and friends.  Many of you want to know, what I think about the acquisition.  How will the merger of our top two competitors impact Sage Nonprofit? And, how will the integration of two really big nonprofit tech companies impact the nonprofit sector?  My initial thoughts:

Only time will tell as these two companies work together to create a common vision for two very distinct cultures and merge two very different platforms.  I am sure there are many complex strategic, technology, people and process issues to address.

Some are estimating the combination of Blackbaud and Convio, equates to 10% of the market for online fundraising and many nonprofits are concerned with higher costs due to less competition.  The fact is there are many fundraising solutions in the marketplace, so nonprofits have plenty of choices; Sage Nonprofit is one of them.

There are over 32,000 nonprofits using Sage for fund accounting, donor and fundraising management, grant management, online donations, e-marketing, human resources and even payroll processing.  We offer a complete and integrated set of tools to raise more money and track where every dollar is spent.

Convio is located just down the road from us and we have many shared partners and customers.  My heart goes out to the people: employees, partners and customers who are affected by this change. I want them to know we are here for them.  There are incredibly talented people that work with both Convio and Blackbaud who may be looking for different options. If that’s the case, then join us. Sage will welcome you with open arms.

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Most charities don’t work in vacuums. Oftentimes nonprofits collaborate with one another for the greater good and to amplify their reach. With the recent economic slowdown, many organizations are realizing they cannot exist on their own and are seeking collaborations, partnerships or to merge with similarly missioned nonprofits.

For example, the Boston Globe recently reported that one of the city’s biggest nonprofit consulting firms, Philanthropic Initiative Inc., is set to be acquired by the Boston Foundation. This comes after a few years of losses for Philanthropic Initiative, which lost about 60 percent of its revenue since 2007. Today it only operates with around $2.5 million, much less than in previous years.

If two or more organizations decide that they’d be better off as a single group, the transition is much easier when data is up to date and maintained using software designed for nonprofits. Fund accounting software helps organizations to understand exactly how much money they have, how much they’re bringing in and what amount they’re spending by program or grant. Clear financial records enable the organizations to assess their current situation and to form clear strategies for their future.

Finally, partnerships and collaborations are greatly aided by online fundraising software. Rather than concentrating efforts on two different campaigns, nonprofits functioning in partnership can share donor lists, track results and extend the reach of their marketing efforts.

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