Study: U.S. Online Giving Surpasses $3 Billion in 2004; Kintera/Luth Nonprofit Trend Report Shows More Than 8.6 million U.S. Households Gave Online Donations in 2004

SAN DIEGO--()--June 16, 2005--Online donations in the U.S. in 2004 exceeded $3 billion -- up 58 percent from $1.9 billion in 2003 -- according to a recent study by technology provider Kintera(R), Inc. (Nasdaq:KNTA) and Luth Research Inc., a veteran online market research firm. The 2005 Kintera/Luth Nonprofit Trend Report is the second comprehensive report about the online donation habits of the U.S. population.

The survey results indicate that more than 8.6 million U.S. households gave online donations in 2004. Results also show that more than 65 percent of all donors visit at least one of the websites of the nonprofit organizations or fundraising events to which they give.

The report is based on a total of 3,142 responses from two surveys administered in March and April 2005 to the Luth Research SurveySavvy Panel, a widely recognized online sample source with 3.5 million individuals in the United States. Both surveys featured five questions -- the first received 1,543 responses and the second received 1,599 responses.

Other noteworthy results from the 2005 Kintera/Luth Nonprofit Trend Report include:

-- On average, online givers donate in total (both online and offline) more than 50 percent more than those donors who do not give online.

-- More than 12 percent of all donating households in 2004 made some online donations.

-- More than 75 percent of donors who go online before making a donation noted that going online made some impact on their decision whether or not to give, and more than 25 percent said the impact was significant.

-- Approximately 35 percent of all online donors gave at least half of their donation amount online; 22 percent of all online donors gave all of their donations online. This means that approximately 3 percent of all donors in 2004 gave all their donations online.

"The tsunami may have accounted for $200 million of the total online giving in 2004," said Ephraim Feig, Kintera's Chief Technology Officer and Chief Marketing Officer, who designed the survey and analyzed the data. "The vast majority is due to donors' acceptance of the Internet as an immediate, convenient and safe way to give."

Added Roseanne Luth, president and CEO of Luth Research/Luth Research Online, "The fact that online giving has increased by more than 50 percent this past year confirms that those who experience online giving are finding it a preferred alternative to traditional giving of charitable donations."

The study also confirms what others have consistently shown -- donors who give online give in total (online and offline) more than donors who do not donate online. Online giving is increasing across all sectors of the nonprofit community. And, not surprisingly, the bigger donors are also giving more online.

The Kintera/Luth Nonprofit Trend Report, offering in-depth research about the online population's donation habits, can be downloaded free by clicking on: www.kintera.org/Kintera-LuthReport2005.

About Luth Research Inc.

Founded in 1977, Luth Research has consistently offered clients around the world the kind of forward-thinking market research that moves business ahead. The company's ongoing commitment to personalized service, advanced technology and customized research methodologies places Luth at the forefront of the market research industry. From the Luth innovative online panel to the creative combination of research methods by an experienced team, clients can always count on Luth Research to put them at the Intersection of Intelligence. For more information, please visit www.luthresearch.com.

About Kintera, Inc.

Kintera(R), Inc. (Nasdaq:KNTA) provides an online solution to help nonprofit organizations deliver The Giving Experience(TM) 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(R) fundraising program and Kintera Sphere(TM), an enterprise-grade software platform that provides a secure, scaleable and reliable system for customer relationship management (CRM), a web content management system (CMS), eMarketing and directed giving applications. Additionally, Kintera FundWare(R) provides award-winning financial management software developed for nonprofit organizations and governments.

Kintera recently introduced the Kintera GivingFund(TM) payment option offering donors Internet convenience for Donor Advised Funds (DAF) financial services. Nonprofits may now provide higher customer service to philanthropists through this new, innovative way to make major gifts online. A one-time DAF, CharityGift(TM), is available for purchase at Kintera's The Giving Communities(TM) interactive website at www.kintera.org. The site is also a destination for consumers to connect with thousands of causes and organizations.

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

Kintera, Kintera Sphere, Friends Asking Friends, The Giving Experience, The Giving Communities, GivingFund, CharityGift 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 web-based software by nonprofit organizations) 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.

Contacts

Kintera Corporate Communications
Stephanie Penner, 858-795-8875
spenner@kintera.com
or
Media First Public Relations
Shev Rush, 760-567-4321
shev@mediafirstpr.com

Contacts

Kintera Corporate Communications
Stephanie Penner, 858-795-8875
spenner@kintera.com
or
Media First Public Relations
Shev Rush, 760-567-4321
shev@mediafirstpr.com