Kintera(r) Inc., a leading provider of "software as a service" to nonprofit organizations, announced that it has acquired the business of KindMark, a developer of corporate giving solutions to help corporations and nonprofits automate and support their workplace giving programs. KindMark clients include EDS, the Charles Schwab Corporation Foundation, Computer Sciences Corporation and other Fortune 500 corporations.

KindMark offers solutions for managing workplace giving programs, corporate employee gift matching, volunteer tracking and management, political action committee (PAC) membership and fundraising drives. KindMark's web-based technology, complementary to the corporate giving solutions Kintera currently offers as a result of its 2003 acquisition of Donation Depot, will continue to expand Kintera's leadership in the workplace giving marketplace. Kintera Workplace Giving will be the future name for this service.

An important focus for Kintera's business is the unallocated giving segment of the philanthropy sector that includes workplace giving campaigns, employee matching programs and donor advised funds which are often run by community foundations. According to the American Association of Fundraising Counsel's "Giving USA 2004" study, unallocated giving contributions were over $24 billion in 2003, which represent 10% of the $241 billion that was donated that year.

To purchase the business of KindMark, Kintera issued 57,691 shares of restricted common stock and $139,000 in cash. Additional shares of common stock could be issued based on performance. KindMark's unaudited revenue for the year ended December 31, 2003 was approximately $0.5 million.

"Our workplace giving efforts through several United Way agencies, Community Health Charities and other corporate and nonprofit clients offer Kintera a growing area of market opportunity," said Kintera's CEO, Harry Gruber, M.D. "Our mission is to help drive revenue to worthy 'for cause' organizations. With the technologies and corporate market presence developed by KindMark, we can further our reach by providing corporations and nonprofits the online tools they need to manage, deploy and track their corporate employee philanthropy programs."

Added Gruber, "We're pleased that KindMark, a recognized leader in providing workplace giving solutions, is now a member of the Kintera family."

"We're thrilled to join Kintera in delivering effective, web-based solutions to manage workplace giving programs," said Gary Carr, the former president of KindMark. "Kintera's powerful and flexible technology platform, combined with our expertise in meeting corporate employee philanthropy needs in the workplace, offers an ideal match."

Principals at KindMark who have joined Kintera include Carr, and KindMark's former chief marketing officer, Debbie Snyder. Carr, now a vice president of sales at Kintera, has an extensive background in both philanthropy and finance including regional director of United Way of the National Capital Area, and business development executive with NationsBank (now Bank of America). Prior to joining KindMark, Snyder spent 18 years at EDS, a leading global information technology services company, in senior level management positions that included director of global community affairs, as well as manager of the company's electronic medical record division.