KNTA Kintera (MM)

Taxpayers have until year's end to take advantage of new tax breaks for charitable contributions, thanks to the Katrina Emergency Tax Relief Act of 2005 (KETRA). The time constraint on tax incentives could lead donors to contribute online to hurricane relief -- and causes unrelated to hurricane relief -- as the year comes to a close, according to Kintera(R), Inc. (Nasdaq:KNTA), the leading provider of software as a service to the nonprofit industry. In general, the Act provides for individuals who itemize and make cash contributions to nonprofits between August 28 and December 31, 2005, to deduct such contributions up to 100 percent of their adjusted gross income (AGI), taking into account their other contributions. Outside of this legislation, the amount of contributions such a donor can deduct is limited to 50 percent of their AGI. Donations to any public charity -- not just those related to Hurricane Katrina -- are not subject to this limit if made in this period. The measure generally also waives the 10 percent taxable income limitation on corporate donations to public charities for donations related to Hurricane Katrina made within the August 28 to December 31 period. For the Act to apply, the taxpayer must make a special election. "This new law could be interesting for charitable organizations," said Harry E. Gruber, M.D., CEO of Kintera. "With only six weeks left until year's end, donors don't have time to wait around for mailings from hurricane relief organizations. They'll be heading online to research -- and donate -- to charitable organizations focused on rebuilding in hurricane-ravaged areas." Earlier this year, a tax law was enacted to encourage contributions for tsunami relief efforts. The law allowed donations made toward tsunami relief during January 2005 to be deducted in 2004. Based on online donation transactions from Kintera's nonprofit clients involved in disaster relief, the company reported that on January 31, the amount given to tsunami causes was more than four times the average daily amount contributed to tsunami causes between January 21 and January 27, 2005. Kintera estimated that by the end of January, more than $350 million in online donations were collected by disaster relief organizations after the tsunami struck. Kintera supports numerous charities that use the company's Web-based software to raise funds online for a variety of causes including hurricane relief. For a list of nonprofits involved in hurricane-related or general fundraising, please visit www.kintera.org. 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 also provides the Kintera GivingFund payment option offering donors Internet convenience for initiating grant requests from their Donor Advised Funds (DAF). Organizations sponsoring donor advised funds as well as recipient nonprofits and foundations are now able to provide improved 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) Web site at www.kintera.org. 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 software solutions 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.