Blackbaud Inc., the Daniel Island company whose software helps charities, schools and other nonprofits raise money, becomes a publicly traded company today. Its shares begin trading on the Nasdaq National Market under the symbol BLKB, according to the company.

The initial public offering covers 8,098,779 shares at $8 each, worth about $64.8 million, according to Blackbaud’s final prospectus, dated July 21.

Blackbaud will not see any of that money. Every share in the offering is being sold by existing stockholders.

“We will not receive any proceeds from the sale of shares in this offering,” the company said in the prospectus.

After underwriting discounts and commissions of 56 cents a share, the selling stockholders stand to collect about $60.3 million before expenses. JPMorgan and Banc of America Securities are leading the underwriting group, which also includes Thomas Weisel Partners and Wachovia Securities. The underwriters have 30 days to buy up to 1,214,817 more shares from the sellers.

Who is selling

The biggest seller is Anthony E. Bakker. He beneficially owned 6,059,083 shares, or about 14.3% of the company, before the offering, including shares held by trusts for his children, according to the prospectus. He is selling 5,268,768 of them, which will leave him with about 1.9%.

Gary F. Thornhill is selling 1,317,192 shares, and 11 other holders are selling smaller blocks. Louis J. Attanasi, Blackbaud’s vice president of strategic technologies, is the only executive officer on the list, selling 131,719 shares.

The largest stockholder is not selling at all. Hellman & Friedman Capital Partners III and two affiliated funds, based in San Francisco, will own about 68.3% of Blackbaud’s stock after the offering, the prospectus says.

That stake gives the funds “the ability to control all matters submitted to our stockholders for approval,” the company warned investors, including the election of directors and any merger or sale of substantially all of its assets. Executives, directors and their affiliates will together control about 77.1%.

What Blackbaud sells

Blackbaud calls itself “the leading global provider of software and related services designed specifically for nonprofit organizations.” It was incorporated in New York in 1982 and moved its operations to Charleston in 1989, according to the prospectus.

Its flagship product is The Raiser’s Edge, fundraising software that nonprofits use to track donors and gifts. The Raiser’s Edge and related services brought in about 72% of the company’s revenue in 2003, the prospectus says. Other products include The Financial Edge for fund accounting, The Education Edge for private K-12 schools and analytics services that help groups find likely donors.

The company had more than 12,500 customers in 2003, in 45 countries. Its customers include the American Red Cross, the New York Philharmonic and United Way of America.

Revenue rose 12.3% in 2003 to $118.1 million. Even so, Blackbaud reported a net loss of $478,000 for the year after a $23.7 million charge for stock option compensation. In the first three months of 2004, revenue grew 15% to $31.4 million, and the company earned $4 million.

Blackbaud had about 815 employees on June 30, including 380 in customer support and 150 each in sales and marketing and in research and development. None is represented by a union.

Ties to a major holder

The prospectus also details business ties between Blackbaud and Bakker.

The company leases its headquarters, about 230,000 square feet at 2000 Daniel Island Drive, from Duck Pond Creek LLC. Bakker owns 60% of that company, and Attanasi and Gerard J. Zink, the vice president of customer support, own 4% each. The current base rent is about $4.3 million a year, under a 10-year lease that runs to July 2010 with two five-year renewal options.

Blackbaud also pays Charleston Battery Inc. for the naming rights to Blackbaud Stadium, the soccer stadium on Daniel Island. Bakker principally owns the Battery, according to the prospectus. The company paid $200,000 a year under that agreement in 2001, 2002 and 2003, and the deal is scheduled to end in October 2009.

Blackbaud said it believes both agreements are on terms at least as favorable as it could have gotten from an unrelated party.

Who runs it

Robert J. Sywolski, 66, has been president and chief executive since March 2000. He was previously a general partner at JMI Equity Fund and spent 12 years as chairman and CEO of Cap Gemini’s North American operations. Marco W. Hellman is chairman of the board, and Timothy V. Williams is chief financial officer.

The company has not paid a cash dividend since it became a C corporation in October 1999. The prospectus leaves the door open, saying Blackbaud “might elect to do so in the future.”

Blackbaud reincorporated in Delaware on July 16 ahead of the offering. It also leases offices in Glasgow, Scotland, and Sydney, Australia.