Blackbaud (BLKB) 8-K/A Financial Statements and Exhibits

Exhibit 99.4

Blackbaud, Inc.

Kintera, Inc.

Unaudited Pro Forma Condensed

Combined Financial Statements

On July 8, 2008, Blackbaud, Inc. (“Blackbaud”) acquired Kintera, Inc., (“Kintera”) based in San Diego, California as a wholly owned subsidiary. Blackbaud financed the acquisition through a combination of cash and borrowings under the Company’s credit facility for a total purchase price of approximately $50.0 million including approximately $2.4 million in change of control payments to management and approximately $1.9 million in direct acquisition-related costs.

The unaudited pro forma condensed combined balance sheet was prepared as if the acquisition of Kintera had occurred on March 31, 2008. The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2007 and the three months ended March 31, 2008 were prepared as if the acquisition had occurred on January 1, 2007.

The unaudited pro forma adjustments are based upon available information and assumptions that Blackbaud believes are reasonable. The unaudited pro forma condensed combined balance sheet and statement of operations and related notes thereto should be read in conjunction with Blackbaud’s historical consolidated financial statements as previously filed in Blackbaud’s Annual Report on Form 10-K for the year ended December 31, 2007, filed with the Securities and Exchange Commission (the “Commission”) on February 29, 2008 and Blackbaud’s historical consolidated financial statements as previously filed in Blackbaud’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2008, filed with the Commission on May 9, 2008. In addition, this unaudited condensed combined pro forma information should be read in conjunction with Kintera’s historical consolidated financial statements as previously filed in Kintera’s Annual Report on Form 10-K for the year ended December 31, 2007, filed with the Commission on March 18, 2008 and as amended on Form 10-K/A filed with the Commission on March 26, 2008 and Kintera’s historical consolidated financial statements for the quarter ended March 31, 2008 filed with the Commission on May 12, 2008. These financial statements are incorporated by reference in Blackbaud’s Current Report on Form 8-K/A filed on September 19, 2008.

These unaudited pro forma condensed combined financial statements are prepared for informational purposes only and are not necessarily indicative of future results or of actual results that would have been achieved had the acquisition of Kintera been consummated as of January 1, 2007. The pro forma financial statements do not give effect to any cost savings or incremental costs that may result from the integration of Blackbaud and Kintera.

Blackbaud, Inc.

Unaudited pro forma condensed combined balance sheet

As of March 31, 2008

(in thousands, except share amounts)

	Historical						Pro Forma
	Blackbaud			Kintera			Adjustments			Combined
ASSETS
Current assets
Cash and cash equivalents	$	12,142		$	4,080		$	(50,012	) (a)	$	11,870
								45,660	(a)
Marketable securities		—			1,580						1,580
Restricted cash		—			7,718						7,718
Accounts receivable		42,324			4,608						46,932
Prepaid expense		12,184			922						13,106
Deferred costs		—			1,362			(1,362	) (b)		—
Deferred tax asset		3,176			—			4,818	(i)		7,994
Total current assets		69,826			20,270			(896	)		89,200
Property and equipment, net		17,677			3,991						21,668
Deferred tax asset, noncurrent		49,202			—			21,260	(i)		70,462
Developed software, net		—			1,863			(1,863	) (b)		—
Goodwill		60,643			12,017			(12,017	) (d)		67,736
								7,093	(c)
Intangibles, net		36,208			3,392			(3,392	) (d)		53,258
								17,050	(f)
Other assets		446			47						493
Total assets	$	234,002		$	41,580		$	27,235		$	302,817
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	5,822		$	1,395					$	7,217
Accrued expenses		19,813			2,440		$	672	(g)		22,838
								(87	) (e)
Donations payable		—			7,718						7,718
Capital lease obligations		513			17						530
Short-term notes payable		11,500			1,200			113	(o)		12,813
Deferred revenue		94,879			15,721			(8,138	) (h)		102,462
Deferred tax liabilities, current		—			—						—
Total current liabilities		132,527			28,491			(7,440	)		153,578
Notes payable		—			1,974			45,660	(a)		47,634
Capital lease obligations		449			14						463
Deferred rent and other		—			817			(701	) (e)		116
Deferred revenue		4,061			—						4,061
Other liabilities		1,080			—						1,080
Deferred tax liabilities, noncurrent		—			478			(478	) (p)		—
Total long-term liabilities		5,590			3,283			44,481			53,354
Total liabilities		138,117			31,774			37,041			206,932
Capital
Common stock		50			40			(40	) (j)		50
Additional paid in capital		108,551			157,932			(157,932	) (j)		108,551
Treasury stock		(108,130	)		—						(108,130	)
Accumulated other comprehensive income		145			6			(6	) (j)		145
Retained earnings		95,269			(148,172	)		148,172	(j)		95,269
Total equity		95,885			9,806			(9,806	)		95,885
Total liabilities & stockholders’ equity	$	234,002		$	41,580		$	27,235		$	302,817

The accompanying notes are an integral part of the unaudited pro forma condensed combined financial statements.

Blackbaud, Inc.

Unaudited pro forma condensed combined statement of operations

for the year ended December 31, 2007

(in thousands, except per share amounts)

	Historical						Pro Forma
	Blackbaud			Kintera			Adjustments		Combined
Revenue
License fees	$	37,569		$	1,196				$	38,765
Services		91,376			11,079					102,455
Maintenance		94,602			7,379					101,981
Subscriptions		25,389			25,281					50,670
Other revenue		8,102			—					8,102
Total revenue		257,038			44,935		—			301,973
Cost of revenue
Cost of license fees		2,870			694		152	(m)		3,716
Cost of services		54,908			5,101					60,009
Cost of maintenance		17,119			856		1,007	(m)		18,982
Cost of subscriptions		10,306			9,200		1,932	(m)		21,438
Cost of other revenue		7,274			—					7,274
Total cost of revenue		92,477			15,851		3,091			111,419
Gross profit		164,561			29,084		(3,091	)		190,554
Operating expenses
Sales and marketing		56,994			17,967					74,961
Research and development		28,525			6,338					34,863
General and administrative		26,144			16,296					42,440
Amortization		491			2,451		(2,451	) (l)		584
							93	(m)
Restructuring					2,274					2,274
Total operating expenses		112,154			45,326		(2,358	)		155,122
Income from operations		52,407			(16,242	)	(733	)		35,432
Interest income		813			911		(215	) (q)		1,509
Interest expense		(1,164	)		(59	)	(1,584	) (k)		(2,807	)
Other (expense) income, net		(503	)		64					(439	)
Income before provision for income taxes		51,553			(15,326	)	(2,532	)		33,695
Income tax provision		19,829			459		(7,328	) (n)		12,960
Net income	$	31,724			(15,785	)	4,796		$	20,735
Earnings per share
Basic	$	0.73							$	0.48
Diluted	$	0.71							$	0.46
Common shares and equivalents outstanding
Basic weighted average shares		43,619,158								43,619,158
Diluted weighted average shares		44,595,483								44,595,483

The accompanying notes are an integral part of the unaudited pro forma condensed combined financial statements.

Blackbaud, Inc.

Unaudited pro forma condensed combined statement of operations

for the three months ended March 31, 2008

(in thousands, except per share amounts)

	Historical						Pro Forma
	Blackbaud			Kintera			Adjustments			Combined
Revenue
License fees	$	9,635		$	98					$	9,733
Services		23,576			1,811						25,387
Maintenance		25,430			1,652						27,082
Subscriptions		8,785			5,350						14,135
Other revenue		2,010									2,010
Total revenue		69,436			8,911			—			78,347
Cost of revenue
Cost of license fees		842			45			38	(m)		925
Cost of services		15,693			1,490						17,183
Cost of maintenance		4,704			204			271	(m)		5,179
Cost of subscriptions		3,656			2,253			529	(m)		6,438
Cost of other revenue		1,848			—						1,848
Total cost of revenue		26,743			3,993			838			31,574
Gross Profit		42,693			4,918			(838	)		46,773
Operating expenses
Sales and marketing		15,239			3,564						18,803
Research and development		8,767			1,621						10,388
General and administrative		7,266			3,460						10,726
Amortization		167			522			(522	) (l)		190
								23	(m)
Restructuring		—									—
Total operating expenses		31,439			9,167			(499	)		40,107
Income from operations		11,254			(4,249	)		(339	)		6,666
Interest income		165			121			(54	) (q)		232
Interest expense		(70	)		(93	)		(396	) (k)		(559	)
Other (expense) income, net		(89	)		(22	)					(111	)
Income before provision for income taxes		11,260			(4,243	)		(789	)		6,228
Income tax provision		4,217			52			(1,937	) (n)		2,332
Net income	$	7,043		$	(4,295	)	$	1,148		$	3,896
Earnings per share
Basic	$	0.16								$	0.09
Diluted	$	0.16								$	0.09
Common shares and equivalents outstanding
Basic weighted average shares		43,897,369									43,897,369
Diluted weighted average shares		44,662,620									44,662,620

The accompanying notes are an integral part of the unaudited pro forma condensed combined financial statements.

Note 1 – Basis of presentation

On July 8, 2008, Blackbaud, Inc. (“Blackbaud” or the “Company”) acquired Kintera, Inc. (“Kintera”) based in San Diego, California as more fully described in Note 2.

The unaudited pro forma condensed combined balance sheet was prepared as if the acquisition of Kintera had occurred on March 31, 2008. The unaudited pro forma condensed combined statements of operations for the year ended December 31, 2007 and the three months ended March 31, 2008 were prepared as if the acquisition had occurred on January 1, 2007.

The unaudited pro forma condensed combined financial information has been prepared on the same basis as Blackbaud’s audited consolidated financial statements. The acquisition was accounted for using the purchase method of accounting and, accordingly, the respective assets acquired and liabilities assumed have been recorded at their fair value and consolidated into the net assets of Blackbaud.

Note 2 – Purchase price

The purchase price for Kintera was approximately $50.0 million and was funded by cash on hand and borrowings under the Company’s credit facility. The purchase price consisted of $45.7 million of cash from proceeds of debt, $2.4 million in payments to management under change of control provisions and $1.9 million of direct acquisition-related costs. The acquisition was accounted for as a purchase and the total purchase price consisted of (in thousands):

Cash from proceeds of debt paid for outstanding shares	$	45,660
Cash on hand used to pay management change of control payments		2,417
Direct acquisition-related costs		1,935
Total purchase price	$	50,012

The purchase price has been based on a preliminary valuation because the final valuation has not been completed. The final valuation is expected to be completed by the end of 2008. Differences between the preliminary valuation and the final valuation are not expected to be significant. Identifiable intangible assets acquired are amortized on a straight-line and accelerated basis as noted in the table below. Based upon the purchase price of the acquisition and based upon the preliminary valuation of the acquired net assets, the preliminary purchase price allocation is as follows (in thousands):

Historical net book value of Kintera's assets and liabilities	$	9,806
Adjustments to step-up (down) net assets and liabilities to fair value:
Deferred revenue		8,138
Fair value adjustment to write-off of Kintera's goodwill and intangibles		(15,409	)
Other fair value adjustments		(2,744	)
Fair value of acquired tangible assets and liabilities before adding intangibles and deferred tax impact					(209	)
Identifiable intangible assets
Marketing assets (8 years, straight-line amortization)		740
Customer relationships (4-13 years, accelerated amortization)		12,200
Software (4-8 years, straight-line amortization)		4,110
Total identifiable intangible assets					17,050
Current deferred tax assets					4,818
Non-current deferred tax assets					21,260
Goodwill					7,093
Net assets acquired				$	50,012

Note 3 – Pro forma adjustments

Adjustments have been made to this unaudited pro forma condensed combined financial information to reflect the following:

(a) To reflect the cash paid and the debt financing associated with the acquisition as noted in Note 2;

(b) To write off the book value of deferred implementation costs and capitalized software development costs;

(c) To record the fair value of goodwill resulting from the acquisition;

(d) To write off the book value of Kintera’s goodwill and intangible assets;

(e) To write off lease incentive and deferred rent liabilities;

(f) To establish the fair value of identifiable intangible assets resulting from the acquisition, principally the value of customers and software acquired;

(g) To establish liabilities generated upon acquisition;

(h) To establish the fair value of deferred revenues;

(i) To record deferred tax assets and liabilities related to assets acquired and liabilities assumed, principally the acquired net operating loss carryforwards available to offset future taxable income, net of applicable limitations of their use;

(j) To eliminate the historical stockholders’ equity of Kintera;

(k) To record interest expense associated with the $45.7 million in debt incurred to finance the acquisition which is assumed to be outstanding during 2007 and is based on the weighted average interest rate for the period. A change in the interest rate of 1/8^th of a percent would result in a change of $58,000 in interest expense for the year ended December 31, 2007 and $14,000 for the three months ended March 31, 2008;

(l) To eliminate amortization recorded on Kintera’s intangible assets;

(m) To record amortization expense on the identified intangible assets resulting from the acquisition;

(n) To record the tax impact of pro forma adjustments by adjusting the combined pro forma presentation to the Blackbaud effective tax rate;

(o) To record an increase in principal to adjust a short term note payable to fair value;

(p) To write off the book value of Kintera’s deferred tax balances; and

(q) To reflect the decrease in interest income based on the weighted average rate of return for the period.

Note 4 – Reclassifications

Certain reclassifications have been made to conform Kintera’s Statement of Operations to Blackbaud’s Statement of Operations. Specifically, certain costs associated with Kintera’s sales contract administration and billing functions that were classified as sales and marketing costs in Kintera’s statements of operations have been reclassified to general and administrative costs consistent with Blackbaud’s treatment of these operating expenses. These costs were $454,000 and $1,386,000 for the three months ended March 31, 2008 and the year ended December 31, 2007, respectively.