Is Blackbaud the Right Donation Platform for Your Nonprofit?

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Blackbaud

Rating
A
4.5/5
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Pros and Cons of Blackbaud

Pros

Secure transactions
Fraud management
Nonprofit specialization
Recurring donations
Integrated solutions

Cons

Potential higher costs
Limited customization
Steep learning curve
International fees
Limited features

Overview

In this Blackbaud review, we’ll take a clear look at their credit card processing services built for nonprofit organizations. You’ll learn about their online donation processing, fundraising tools, and donor management solutions, along with which types of organizations may benefit most. We’ll also highlight customer reviews to show common trends and concerns, while covering pricing, contract terms, and service details. By the end, you’ll have the insights needed to decide whether Blackbaud is the right choice for your nonprofit’s fundraising and payment processing needs.

About Blackbaud

Screen Capture of Blackbaud Merchant Services Homepage
Blackbaud Homepage

Blackbaud is a software and merchant account provider that specializes in solutions for nonprofit organizations. Its payment solutions allow merchants to process credit card and ACH payments. Founded in 1981, the company has grown from a simple computerized billing service into one of the largest all-in-one solutions available for charities. Blackbaud utilizes Chase Merchant Services, Wells Fargo, and First Data Canada for its backend processing. As of 2022, Blackbaud has integrated Paypal and Venmo payments into its services.

In 2023, Blackbaud partnered with Almabase, an educational software company, and SwipeTrack Solutions, a patron experiences tech company.

Products & Merchant Services

Credit Card Processing

Blackbaud Merchant Services focuses on providing efficient credit card processing tailored for nonprofits. This service allows organizations to securely accept various card payments.

Online Payment Processing

In response to the increasing prevalence of online transactions, Blackbaud Merchant Services offers secure online payment processing.

Mobile Payment Solutions

To support nonprofits needing flexibility in transaction processing, Blackbaud Merchant Services provides a mobile payment service.

Integrated Fundraising and Donor Management Tools

Beyond payment processing, Blackbaud Merchant Services offers integrated fundraising and donor management tools.

Fraud Management and Security Services

Blackbaud Merchant Services prioritizes secure transactions by offering advanced fraud management and security services. These include tokenization, PCI compliance, and fraud detection and prevention tools.

Customer Reviews & Sentiment

Low Complaint Volume

Our research has uncovered just over 10 negative Blackbaud reviews, with none categorizing the company as a ripoff or scam. A particularly detailed negative review of Blackbaud Merchant Services suggests that while Blackbaud offers a robust array of features and has a strong sales team, it may be overpriced relative to its value and can have a steep learning curve. This sentiment is echoed in several reviews, both positive and negative, framing Blackbaud as a dependable, all-in-one solution suited for medium to large non-profit organizations. However, very small or very large charities might find the lack of third-party support or the cost of additional features limiting. We encourage you to share your own experiences with Blackbaud Merchant Services in the comments below to provide further insight to others.

Blackbaud Lawsuits and Fines

In 2018, Blackbaud faced a lawsuit from Mission Measurement Corporation in the Eastern Division of the United States District Court for the Northern Division of Illinois, accusing the company of violating the Defend Trade Secrets Act of 2016 by improperly using confidential information. The status of this case remains unresolved.

Another lawsuit was filed against Blackbaud in April 2018 in the Central District of California. In this class-action lawsuit, William Brown, et al v. Blackbaud, Inc, the plaintiffs allege that Smart Tuition, a Blackbaud subsidiary, included unlawful late fees in its contracts, violating California’s Unfair Competition Law. This case is also pending resolution.

In 2020, Blackbaud experienced a significant ransomware attack leading to a major data breach, impacting many clients including The American Red Cross and The Boy Scouts of America. The breach involved sensitive information for millions of individuals. This incident has led to at least one class-action lawsuit, focusing on Blackbaud’s delayed disclosure to its clients.

Additionally, Blackbaud has been fined nearly $200,000 for wage and hour violations and labor relations issues.

Blackbaud Customer Support Options

Blackbaud provides customer support options including a dedicated phone number and chat support, offering service levels that are in line with top-rated credit card processors known for excellent customer service.

Blackbaud Customer Service Numbers

  • (800) 443-9441 – Toll-Free Customer Support
  • (843) 216-6111 – Fax
  • (800) 468-8996 – Billing

Industry Scores & User Ratings

Online Ratings Summary
BBB Rating1
Average Rating1

PaymentPop Rating for Blackbaud

Negative Feedback

This payment-enabled fee of $50/mth from Blackbaud started at the beginning of March. According to the information, it would only be for customers that use payment-enabled services, such as processing payments, etc. Come to find out that even if you only use the database to store and record donors, and not to process any transactions through your bank, you are still expected to pay this fee. Which by the way they say is a monthly fee of $50, but they will be billing it annually…so $600.00 EXTRA dollars in addition to the renewal amounts that do not list any additional fees after the renewal charge. But all their CEOs and Directors are making bank selling their shares…it’s ridiculous.

Positive Feedback

There are no positive reviews published about Blackbaud on the PaymentPop website.

Blackbaud BBB Rating

The Better Business Bureau currently assigns an “A-” rating to Blackbaud and does not show that the company is accredited. Blackbaud’s BBB profile has received 20 complaints in the past 36 months. Of these 20 complaints, only 11 were resolved to the satisfaction of the merchant. The remaining 9 were resolved to the dissatisfaction of the merchant or received no final response. Blackbaud has a 1 out of 5 star rating based on 11 user reviews on the Better Business Bureau website.

What Merchants Say

In addition to those 20 complaints, Blackbaud has received 12 informal reviews on its BBB profile. All 12 reviews are negative, receiving 1 out of a possible 5 in each case. The most recent complaint details difficulties with Blackbaud’s tuition management:

They call themselves “Blackbaud Tuition Management” but then use the moniker “Smart LLC” when taking money out of downstream customer bank accounts. It looks like fraud and they claim no responsibility for their bad business practice. They assess bank fees that they refuse to waive when shocked customers see potentially fraudulent charges on their bank accounts from their affiliate company. If they are using multiple names to do business, they need to be transparent to the end users. This is a bad and terrifying business practice.

Businesses in situations like these can benefit from understanding how to cancel services without paying a fee or enacting other undesirable terms and conditions of their contract.

An “A” Rating

In light of this information, we agree with the BBB’s rating at this time, but business owners should be aware that there is cause to be skeptical of the BBB’s information.

Processing Rates & Fees

Blackbaud Pricing Overview

The Blackbaud Terms & Conditions introduce a unified fee structure known as OneRate, which applies a fixed rate of 2.60% plus $0.26 to all card transactions, irrespective of the card type or transaction method. Additionally, ACH transactions incur a fee of $0.75 each. The pricing details, highlighted on page 3 of their documentation, confirm the absence of monthly minimum fees, annual fees, setup fees, gateway fees, PCI compliance fees, batch fees, or binding long-term contracts.

Blackbaud’s marketing materials do not clearly state if an early termination fee is applied. However, a representative from Blackbaud mentioned in a review comment section that users can terminate their service without incurring any penalties, a stance supported by the contractual terms.

Evaluating Blackbaud’s Payment Solution

While Blackbaud’s flat rate for transactions mirrors the industry’s average for mid-qualified or non-qualified transactions, the elimination of additional fees renders it a cost-effective choice for many organizations. The primary limitation noted by clients is Blackbaud’s preference for integrating their payment solutions exclusively with its suite of software products. This integration may restrict non-profits from seeking competitive third-party solutions for donor management, web services, analytics, and marketing tools. Consequently, organizations should thoroughly assess their interest in Blackbaud’s comprehensive software offerings prior to adopting its payment processing services. Non-profits aiming for the most favorable rates should consider comparing services from more affordable merchant account providers.

Additionally, for broader service options, reviewing our selection of the top merchant account providers is advisable.

Employee Reviews & Sales Practices

No Sales Complaints

Since Blackbaud Merchant Services is an optional service within the Blackbaud suite of products, it is primarily marketed to interested or prospective Blackbaud customers. This means that the company does not utilize independent sales agents or engage in “hiring mill” policies that typically plague the credit card processing industry. As a result, we have found no Blackbaud reviews that accuse the company’s sales staff of misrepresentation or nondisclosure.

This compares favorably to our list of best credit card processors.

No Deceptive Advertising

The Blackbaud website does not disclose the pricing of many of its products and services, but it also does not promote any deceptive rates or fees. We will therefore award it an “A” in this category for the time being. If you suspect that Blackbaud is overcharging you, we recommend seeking a third-party statement audit to find and eliminate hidden fees.

Blackbaud Competitors

Compare Blackbaud to competitors that earned top marks.

Bottom Line

Blackbaud appears to be a solid credit card processing provider according to all available information. The company has garnered positive feedback from medium-to-large nonprofits, praised for its extensive range of features and customizable solutions. However, its rigid and relatively expensive pricing structure may not be as appealing to smaller nonprofits or very large organizations.

Blackbaud stands as a reliable payment processor for established nonprofits, offering tailored solutions that meet the needs of organizations looking for robust and adaptable payment processing capabilities. Nonetheless, we recommend that potential clients compare Blackbaud’s pricing and features with those of other top-rated providers to ensure they find the best fit for their unique requirements.

Location & Ownership

Blackbaud is headquartered at 65 Fairchild Street Charleston, SC. The company’s payment processing service is called Blackbaud Merchant Services and will be the primary focus of this review. Michael Gianoni is listed as the president and CEO of Blackbaud.

Read Actual User Reviews

All user reviews have been moved to our partner, PaymentPop.com

Contact Blackbaud

Contact & Customer Support
President and CEOMichael Gianoni
Headquarters65 Fairchild Street Charleston, SC
Toll-Free Customer Support(800) 443-9441
Fax(843) 216-6111
Billing(800) 468-8996
Websiteblackbaud.com/BBMS