SOURCE: Kintera

June 21, 2006 12:50 ET

Donor Advised Funds More Convenient Than Donating Stock Directly, According to Recent Kintera Report

Study Shows 78 Percent of Donor Advised Fund Account Holders Would Have Donated More for Disaster Relief if Receiving Charities Had Online DAF Transaction Capabilities

SAN DIEGO, CA -- (MARKET WIRE) -- June 21, 2006 -- People like their donor advised fund (DAF) accounts -- and want additional services to enable and simplify more frequent grants from their DAF accounts, according to a recent Kintera®/Luth study.

Available at www.kintera.com/whitepaper, the report found that only 79 percent of people who made a stock contribution worth $5,000 or more directly to a charity found the process convenient, whereas 99 percent of DAF advisors maintained that their experience was convenient. In addition, 86 percent of DAF account holders would use their DAF to make small donations -- $250 or less -- if it were as convenient as making a credit card transaction.

"As more people adopt donor advised funds as their preferred method of charitable contribution, DAF accounts will need to offer similar conveniences as offered through online banking and credit card transactions," said Debbie Snyder, general manager of directed giving for Kintera. "The Kintera GivingFund™ solution provides a convenient method for gift transactions, and enables smaller point-of-purchase grant initiation for individuals responding to an impulsive or event-driven donation request."

The Kintera/Luth study also found that 78 percent of DAF account holders would have donated more in 2005 for disasters such as the tsunami or Gulf Coast hurricanes if receiving charities had DAF transaction capabilities available on their Web sites.

More than 90,000 donor advised fund accounts exist with more than $16 billion in assets, according to the National Philanthropic Trust. With more than $2.9 billion contributed annually into DAFs -- which is an annual increase of 19.1 percent from 2003 -- nonprofits that enable more convenient and transparent DAF giving are likely to benefit from the growing DAF market.

Nonprofit organizations interested in downloading the Kintera/Luth study or learning more about how to accept DAF transactions on their Web site, should visit www.kintera.com/whitepaper. In addition, donors interested in making convenient online DAF grants should visit www.kintera.org/thegivingfund.

About Kintera, Inc.

Kintera®, Inc. (NASDAQ: KNTA) provides an online solution to help nonprofit organizations deliver The Giving Experience™ to donors -- including giving convenience, financial transparency, feedback about the social impact of their gifts, and a sense of belonging and appreciation.

More than 15,000 accounts in the nonprofit, government and corporate sectors use Kintera's "software as a service" innovations, including the Friends Asking Friends® fundraising program and Kintera Sphere™, an enterprise-grade software platform that provides a secure, scaleable and reliable system for social constituent relationship management (CRM), enabling organizations to drive all interactions based on comprehensive knowledge of constituents. Additionally, Kintera FundWare® provides award-winning financial management software developed for nonprofit organizations and governments.

For more information about Kintera's software and services, visit www.kintera.com.

Kintera, Kintera Sphere, Friends Asking Friends, The Giving Experience, GivingFund, and FundWare are either registered trademarks or trademarks of Kintera, Inc. in the U.S. and/or other countries.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements (including, without limitation, express or implied statements regarding the adoption of software solutions by nonprofit organizations and the market for donor advised funds) that involve risks and uncertainties. These forward-looking statements represent our estimates and assumptions only as of the date hereof. These statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, without limitation: our limited operating history; our history of losses; our dependence on increased acceptance by nonprofit organizations of online fundraising; lengthy sales cycles for major customers; our need to manage growth; risks associated with accounting for and processing large amounts of donations; the rapidly changing technologies and market demands; and other risks identified in our filings with the Securities and Exchange Commission. Given these uncertainties, you should not place undue reliance on these forward-looking statements.

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