The Hidden Costs of Staying with Blackbaud: Why FundraiseUp is the Smarter Choice
- Ohana Focus Team
- 3 days ago
- 11 min read
By Ohana Focus | January 12, 2025 | 19 min read
When nonprofit organizations evaluate fundraising platforms, the initial focus typically centers on monthly subscription fees and transaction rates. However, the true cost of staying with legacy platforms like Blackbaud extends far beyond the numbers on a sales proposal.
Organizations that have migrated to modern alternatives like FundraiseUp consistently report discovering expenses they hadn't fully accounted for—costs that manifest in staff hours, conversion rates, donor retention, and missed fundraising opportunities.
Understanding these hidden costs is essential for nonprofits seeking to maximize their fundraising efficiency and return on investment.
The Hidden Costs of Blackbaud: Financial Costs Beyond the Contract
Death by a Thousand Add-Ons
Blackbaud's base platform pricing appears competitive at first glance. However, nearly every feature that modern fundraising demands comes as an additional purchase. Organizations quickly discover that their actual costs significantly exceed initial projections:
• Advanced reporting modules: $2,400-$4,000/year
• Peer-to-peer fundraising capabilities: $3,600-$6,000/year base + per-campaign fees
• Recurring gift management enhancements: $1,800-$2,500/year
• Mobile-optimized donation forms: $1,200-$2,000/year
• A/B testing and optimization tools: $2,000-$3,500/year
• Custom API integrations: $5,000-$25,000 per integration
• Premium support with faster response times: $2,500-$5,000/year
Organizations frequently find that features marketed as "optional" are actually essential for competitive fundraising. Annual costs that begin around $8,000-$12,000 in proposals often escalate to $25,000-$40,000 once necessary functionality is added.
Complex Transaction Fee Structures
Blackbaud's payment processing fees require careful analysis beyond the advertised rates:
• Effective credit card rates: While quoted at 2.9% + $0.30, monthly minimum fees and other charges often push the effective rate to 3.2-3.5%
• ACH/bank transfer fees: 1% + $0.50 per transaction (significantly higher than industry standards)
• International donation fees: 4.5% + $0.75 per transaction
• Monthly gateway fees: $25-$50 per month ($300-$600/year)
• PCI compliance fees: $150-$300/year
• Chargeback fees: $15-$25 per occurrence
• Currency conversion fees: 3-4% markup on mid-market rates
For organizations processing $500,000 in annual donations, these fee structures can add $3,000-$7,000 in unexpected costs compared to more transparent pricing models.
The Professional Services Trap
Blackbaud's platform complexity often necessitates ongoing professional services:
• Initial implementation: $5,000-$15,000 (sometimes more for complex migrations)
• Custom form development: $800-$2,000 per form
• Training sessions: $1,500-$3,000 per session
• Annual system audits: $2,500-$5,000
• Troubleshooting support: $200-$350/hour for issues beyond basic support
• Platform upgrades: Often require paid consulting to implement properly
Organizations report spending $8,000-$20,000 annually on professional services just to maintain and optimize their Blackbaud implementation.
Operational Costs That Drain Resources
Blackbaud's legacy architecture creates significant time burdens for nonprofit staff:
• Form creation and updates: Each new donation form requires 2-4 hours of development time, including design, testing, and deployment
• Reporting and reconciliation: Manual data exports and reconciliation processes consume 5-10 hours per week for finance teams
• Donor data management: Duplicate records, data entry errors, and system limitations add 3-6 hours of cleanup work weekly
• Campaign setup: Launching new campaigns involves multiple steps across different modules, requiring 4-8 hours per campaign
• Technical troubleshooting: System glitches and integration issues demand 2-5 hours per week of IT attention
For a mid-sized nonprofit, these operational inefficiencies represent 15-25 hours per week—equivalent to a half-time staff position dedicated solely to managing the platform's limitations.
Limited Real-Time Optimization
Blackbaud's infrastructure makes rapid iteration difficult:
• A/B testing delays: Setting up split tests requires days or weeks rather than minutes
• Form changes: Simple updates like adjusting donation amounts or adding fields require developer assistance
• Campaign adjustments: Real-time pivots during fundraising campaigns are often impossible
• Mobile responsiveness issues: Forms frequently require separate mobile versions and extensive testing
Organizations miss critical optimization windows when they cannot respond quickly to campaign performance data.
Integration Complexity
Connecting Blackbaud to other essential tools presents ongoing challenges:
• API limitations: Restrictive API rate limits and incomplete documentation slow development
• Custom integration costs: Most third-party connections require expensive custom development
• Data sync delays: Real-time synchronization is often unavailable, creating data lag
• Maintenance burden: Integrations frequently break with platform updates, requiring repairs
• Limited marketplace: Fewer pre-built integrations compared to modern platforms
Organizations spend thousands annually maintaining integrations that should work seamlessly out of the box.
Performance Costs That Impact Revenue
Lower Conversion Rates
Blackbaud's donation forms consistently underperform compared to modern alternatives:
• Average conversion rates: 12-18% compared to industry-leading rates of 25-35%
• Mobile abandonment: 45-60% of mobile visitors abandon donation forms
• Load times: Slower page speeds (3-5 seconds) contribute to 20-30% abandonment
• Checkout friction: Multi-page forms and complex interfaces deter impulse donations
• Limited payment options: Fewer payment methods reduce accessibility for diverse donor bases
For an organization driving 10,000 visitors to donation pages monthly, conversion rate gaps can cost $50,000-$150,000 annually in lost donations.
Recurring Donation Challenges
Monthly giving programs face particular obstacles on Blackbaud:
• Setup complexity: Donors encounter multi-step processes that discourage recurring commitments
• Management difficulties: Updating payment information or donation amounts is cumbersome
• Higher failure rates: Payment failures occur more frequently due to outdated retry logic
• Lower retention: Poor user experience contributes to 25-35% annual attrition in recurring programs
• Limited upsell capabilities: Tools for converting one-time donors to monthly givers are basic or nonexistent
Organizations lose 15-30% more recurring donors annually compared to platforms with modern retention features.
Donor Experience Problems
The donor journey on Blackbaud often creates frustration:
• Dated interfaces: Donation forms look and feel outdated, undermining brand trust
• Error-prone processes: Validation issues and system errors frustrate donors during checkout
• Poor mobile experience: 60% of donors now give on mobile, yet Blackbaud forms often aren't optimized
• Slow confirmation: Receipt delivery and thank-you processes lack immediacy
• Limited personalization: Donation experiences feel generic rather than tailored
Poor donor experience directly impacts lifetime value and organizational reputation.
Strategic Costs That Limit Growth
Innovation Deficit
Staying with Blackbaud means falling behind fundraising innovation:
• AI and machine learning: Modern platforms use AI for amount optimization, while Blackbaud relies on static suggestion algorithms
• Predictive analytics: Limited ability to identify likely monthly givers or major donors
• Personalization engines: Donation experiences remain one-size-fits-all
• Emerging payment methods: Slow adoption of digital wallets, cryptocurrency, and regional payment preferences
• Modern UX patterns: Interfaces lag years behind current design standards
Organizations miss revenue opportunities that competitors capture with more advanced technology.
Vendor Lock-In
Blackbaud's ecosystem creates dependency:
• Data portability challenges: Exporting complete historical data is difficult and time-consuming
• Proprietary formats: Data structures don't translate easily to other platforms
• Contract terms: Multi-year agreements and cancellation penalties limit flexibility
• Sunk cost fallacy: Organizations hesitate to migrate after investing heavily in customization
• Knowledge concentration: Staff expertise becomes platform-specific rather than transferable
This lock-in reduces organizational agility and negotiating power.
Opportunity Cost
Perhaps the most significant hidden cost is what organizations forgo:
• Staff innovation time: Hours spent on platform maintenance could drive strategic initiatives
• Donor acquisition: Conversion rate gaps compound over years of missed donations
• Competitive disadvantage: Organizations using better tools capture market share
• Data insights: Limited analytics prevent data-driven decision-making
• Scaling limitations: Platform constraints cap fundraising growth potential
Why FundraiseUp is a Better Choice
Transparent, Predictable Pricing
FundraiseUp eliminates the add-on trap with comprehensive functionality included:
All-Inclusive Platform
• Advanced reporting and analytics included
• Unlimited donation forms and campaigns
• A/B testing and optimization tools standard
• Mobile-optimized responsive design default
• Recurring donation management fully featured
• Integration marketplace with pre-built connections
• Real-time data synchronization
• Premium support for all customers
Organizations pay one transparent rate without surprise fees or required upgrades.
Competitive Transaction Pricing
• Lower effective rates: 2.9% + $0.30 with no hidden fees or monthly minimums
• Free ACH/bank transfers for many organizations
• Competitive international rates
• No gateway fees, PCI compliance fees, or chargeback markups
• Transparent currency conversion at near-market rates
Transaction cost savings alone can justify the migration for high-volume organizations.
Minimal Professional Services Required
• Self-service implementation with guided onboarding
• Intuitive interface requires minimal training
• No ongoing consulting needed for standard operations
• Free migration assistance included
• Extensive documentation and resources available
Organizations dramatically reduce their dependence on expensive professional services.
Superior Technology and Performance
FundraiseUp's modern architecture delivers measurable improvements:
Industry-Leading Conversion Rates
Organizations migrating to FundraiseUp consistently report significant performance gains:
• Average conversion rates: 25-35% compared to Blackbaud's 12-18%
• Mobile optimization: Purpose-built mobile experience reduces abandonment to 15-25%
• Sub-second load times: Page speed optimization keeps donors engaged
• Smart checkout: One-page, streamlined process minimizes friction
• Diverse payment methods: Apple Pay, Google Pay, Venmo, and more increase accessibility
Real-world example: One mid-sized nonprofit increased online revenue by 47% in the first six months after migrating from Blackbaud to FundraiseUp, with traffic remaining constant.
FundraiseUp's AI capabilities transform fundraising
• Dynamic ask amounts: AI suggests optimal donation amounts for each visitor based on behavior patterns
• Smart upsells: System identifies ideal moments to invite monthly giving commitments
• Predictive analytics: Platform forecasts donor lifetime value and churn risk
• Automated A/B testing: Continuous optimization runs without manual intervention
• Personalized experiences: Donation flows adapt to individual donor preferences
Organizations see 15-30% increases in average gift size through AI optimization alone.
Exceptional Mobile Experience
With 60% of donations now occurring on mobile devices, FundraiseUp's mobile-first design is critical:
• Native mobile optimization: Forms designed specifically for touchscreen interaction
• Fast load times: Optimized for cellular networks and varying connection speeds
• Simplified checkout: Mobile wallet integration enables one-tap donations
• Responsive design: Seamless experience across all device sizes
• Touch-friendly interfaces: Large buttons, simplified forms, clear CTAs
Organizations report mobile conversion rates 40-60% higher than on Blackbaud.
Recurring Donation Excellence
FundraiseUp makes monthly giving programs significantly more effective:
• Seamless enrollment: One-click upgrade from one-time to monthly donations
• Smart retry logic: Automated payment recovery reduces failure rates by 40-60%
• Easy donor management: Donors can update payment info and amounts independently
• Proactive retention: System identifies and engages at-risk monthly donors
• Upsell automation: Strategic prompts convert one-time donors to recurring supporters
Organizations see 20-40% improvement in monthly donor retention after migration.
Operational Efficiency and Ease of Use
Intuitive Platform Management
• Form creation: Launch new donation forms in 5-10 minutes without technical assistance
• Campaign setup: Deploy campaigns in under an hour with drag-and-drop tools
• Real-time updates: Make changes instantly without developer involvement
• Visual editors: Design forms and pages without coding knowledge
• Template library: Start with proven designs and customize as needed
Staff report spending 70-80% less time on platform administration after migration.
Automated Reporting and Reconciliation
• Real-time dashboards: Access up-to-the-minute fundraising metrics
• Automated reports: Scheduled reports eliminate manual data compilation
• Built-in analytics: Comprehensive insights without exporting to spreadsheets
• Reconciliation tools: Automated matching streamlines accounting processes
• Custom views: Create role-specific dashboards for different team members
Finance teams report saving 10-15 hours per week on reporting and reconciliation.
Seamless Integrations
• Pre-built connectors: Major CRMs, email platforms, and tools connect in minutes
• Robust API: Well-documented, high-rate-limit API for custom integrations
• Real-time sync: Data flows immediately between systems
• Webhook support: Trigger actions in other systems based on donation events
• Growing marketplace: New integrations added regularly based on customer needs
Organizations complete integrations in days rather than months and maintain them effortlessly.
Superior Support
• Responsive assistance: Average response time under 2 hours for all customers
• Dedicated success managers: Proactive guidance on optimization and best practices
• Migration support: Hands-on help throughout the transition process
• Training resources: Comprehensive documentation, videos, and webinars
• Community engagement: Active user community sharing strategies and solutions
Support quality consistently rates 4.8-5.0 stars compared to Blackbaud's 3.2-3.8 average.
Strategic Advantages for Growth
Continuous Innovation
• Regular feature releases: Platform evolves monthly with new capabilities
• AI advancement: Machine learning models improve continuously with more data
• Industry leadership: Early adoption of emerging payment methods and technologies
• Customer-driven roadmap: Development priorities reflect actual nonprofit needs
• Modern architecture: Cloud-native design enables rapid innovation
Organizations benefit from ongoing improvements without version upgrades or migrations.
Data Ownership and Portability
• Complete data access: All donation data available via API at any time
• Standard formats: Data exports use common, portable formats
• No lock-in: Easy migration path if needs change in the future
• Historical preservation: Complete transaction history accessible indefinitely
• Integration flexibility: Data flows freely to any connected system
Organizations maintain control over their most valuable asset: donor data.
Flexible Scaling
• Volume handling: Platform processes billions in donations without performance degradation
• Geographic expansion: Multi-currency and international payment support included
• Campaign complexity: Unlimited campaigns running simultaneously
• Traffic spikes: Auto-scaling infrastructure handles viral campaign traffic
• Team growth: User management accommodates expanding staff without added costs
Organizations scale fundraising without platform limitations or surprise fees.
Competitive Differentiation
• Modern brand presentation: Donation experiences that match contemporary expectations
• Donor trust signals: Superior UX communicates organizational competence
• Innovation storytelling: Platform capabilities enhance organizational narrative
• Peer comparison: Stand out when donors compare giving experiences
• Talent attraction: Modern tools appeal to skilled fundraising professionals
Organizations using FundraiseUp's project sophistication build donor confidence.
Real-World Migration Results
Organizations that have migrated from Blackbaud to FundraiseUp report consistent outcomes:
Financial Impact
• 40-70% increase in online donation revenue within 12 months
• 15-25% reduction in total platform costs
• 30-50% improvement in average gift size
• 20-40% growth in monthly donor retention
Operational Impact
• 70-80% reduction in time spent on platform administration
• 60-75% fewer hours on reporting and reconciliation
• 50-70% decrease in technical support needs
• 90% reduction in form creation and update time
Strategic Impact
• 100-200% increase in campaign launch frequency
• 3-5x faster deployment of fundraising experiments
• 40-60% more staff time available for donor relationships
• Measurable improvements in donor satisfaction scores
Making the Migration Decision
For nonprofit organizations evaluating whether to leave Blackbaud for FundraiseUp, several factors indicate the timing is right.
Clear Signals to Migrate
• Annual platform costs (including add-ons and services) exceed $20,000
• Online conversion rates lag below 20%
• Staff spend more than 10 hours weekly on platform administration
• Mobile donation experience is poor or forms aren't mobile-optimized
• Campaign launches require weeks of technical work
• Monthly donor attrition exceeds 25% annually
• Integration challenges limit organizational efficiency
• Platform limitations constrain fundraising innovation
Migration Considerations
• Timing: Plan migrations during slower fundraising periods, typically summer or early fall
• Data migration: FundraiseUp provides migration support to ensure complete data transfer
• Team preparation: Onboarding and training typically require 2-4 weeks
• Donor communication: Transparent communication about an improved giving experience
• Testing period: Run parallel campaigns initially to validate performance improvements
• Success metrics: Define clear KPIs to measure migration success
Expected Timeline
• Planning and decision: 2-4 weeks
• Data migration and setup: 3-6 weeks
• Team training: 1-2 weeks
• Parallel testing: 2-4 weeks
• Full launch: 8-16 weeks total
Organizations can complete migrations within a quarter while maintaining fundraising operations.
Conclusion: The True Cost of Inaction
The hidden costs of staying with Blackbaud compound over time. Each month represents:
• Donations lost to poor conversion rates
• Staff hours consumed by inefficient processes
• Opportunities missed due to platform limitations
• Competitive ground ceded to more agile organizations
• Donor trust eroded by outdated experiences
Meanwhile, organizations using FundraiseUp gain advantages daily:
• Higher revenue from better-converting donation forms
• More time for strategic fundraising activities
• Faster response to emerging opportunities
• Enhanced donor relationships through superior experiences
• Sustainable competitive positioning for long-term growth
The question facing nonprofits isn't whether FundraiseUp offers advantages over Blackbaud—the evidence is clear and consistent. The question is whether organizations can afford to wait another year before capturing those advantages.
For most organizations processing significant online donations, the migration to FundraiseUp pays for itself within 6-12 months through increased revenue alone. When operational savings and strategic benefits are included, the case becomes overwhelming.
The hidden costs of staying with Blackbaud are real, measurable, and growing. The benefits of migrating to FundraiseUp are immediate, substantial, and compounding. Organizations that make the switch consistently report the same conclusion: they wish they'd done it sooner.
Ready to Make the Switch?
If you're ready to leave Blackbaud's hidden costs behind and unlock the full potential of modern fundraising technology, Ohana Focus is here to help.
As a certified FundraiseUp implementation partner, Ohana Focus specializes in seamless migrations from legacy platforms like Blackbaud. Our team brings deep expertise in nonprofit technology and a proven track record of successful platform transitions.
What Ohana Focus offers:
• Strategic migration planning: Comprehensive assessment of your current setup and customized migration roadmap
• Data integrity guarantee: Complete, accurate transfer of all donor records, transaction history, and campaign data
• Minimal disruption: Phased implementation approach that keeps your fundraising operations running smoothly
• Staff training and support: Hands-on training to get your team confident and productive quickly
• Optimization expertise: Post-migration tuning to maximize conversion rates and donor experience
• Ongoing partnership: Continued support as your fundraising needs evolve
Don't let another year of hidden costs, missed opportunities, and operational inefficiencies hold your organization back. Let Ohana Focus guide you to a modern fundraising platform that delivers measurable results from day one.
Contact Ohana Focus today to schedule a free consultation and discover how much your organization could gain by making the switch to FundraiseUp.
Transform your fundraising. Empower your mission. Partner with Ohana Focus.