|Why should Blackbaud’s recent $25 million acquisition of eTapestry be a concern for the nonprofit community? Because it removes much needed competition and choice. This isn’t the first time Blackbaud and eTapestry’s founders have joined together and
profited. The founder of eTapestry also sold FundMaster Software to
Blackbaud in 1997 – the first of many acquisitions in an aggressive
strategy of forcing acquired clients to use BlackBaud products and services. If acquired clients don’t switch, they’re left dependent on ‘orphaned’ software that’s no longer supported or updated.|
|What about eTapestry’s Clients?|
Blackbaud has stated that they don’t plan to integrate the eTapestry
business near term. This likely provides little comfort to eTapestry clients, who, like
those who’ve chosen DonorPerfect, were probably looking for a more cost-effective alternative to
Blackbaud. And we all saw how quickly BlackBaud killed off GiftMaker Pro when they recently purchased Campagne Associates.
"The nonprofit community is best served by a vibrant choice of technology solutions."
|eTapestry users have reason for concern. According to Doug Schoenberg, SofterWare CEO, “I suspect many of them are concerned
about possible price increases. After all, to get a return on that $25 million purchase for a
company with only $7 million in annual sales, eTapestry clients are likely to see dramatically
increasing subscription and service fees. Blackbaud’s a public corporation, and in
their most recent conference call to Wall Street, they made it clear they are committed to
continuing, and even increasing, their already substantial profit margins.”|
|DonorPerfect – A Real Alternative to Blackbaud|
The nonprofit community is best served by a vibrant choice of technology solutions. Blackbaud may want to monopolize the fundraising software business,
but we won’t let them. As a private company, with no outside investors or debt, we’ve achieved
our stability and growth for 25 years the old
fashioned way: helping new customers one at a time, with hard work and an unshakable
commitment to our clients, our employees, and our partners.