Global Economic Growth and Charitable Giving Trends: Downgraded global growth forecasts due to the Middle East conflict could reduce charitable giving and non-profit budgets, directly impacting Blackbaud's revenue, as nonprofits are its primary customer base.

Inflationary Pressures and Operational Costs: Rising oil prices stemming from the Middle East conflict contribute to inflation, which may decrease discretionary income for individuals and corporations, potentially leading to reduced donations and philanthropic spending, and increasing Blackbaud's operational costs.

Technological Innovation and AI Adoption in the Social Impact Sector: The accelerating pace of change in the software industry and the rise of AI introduce both opportunities and threats for Blackbaud. While the company is actively integrating AI into its offerings, widespread AI disruption fears and macro headwinds are pressuring traditional SaaS valuations.