Blackbaud, a leading supplier of software for charities, is gaining popularity among investment managers as giving grows and the smaller nonprofits that make up much of its customer base increasingly seek big-data solutions, Reuters reports.
Forty-five U.S. mutual funds added the Charleston, S.C.-based firm to their portfolios between June and August, double the number from the previous quarter. The increase helped drive a 40-percent gain in Blackbaud's share price even as the benchmark Standard & Poor's 500 Index is down for the year.
Analysts said two factors are chiefly drawing fund managers' attention: an economic recovery weighted to the affluent households from which most giving flows, and the success of viral fundraisers such as the Ice Bucket Challenge. Blackbaud is also on a growth spurt, acquiring software firms that serve foundations and private schools.