A. You do not have to have a dedicated server machine to run client server.
Advantage Database Server (ADS) is the name of the software that fills the role of the "server" in the client/server model - FundRaiser itself is the client. You don't have to install ADS on a separate computer. If you have no need for a dedicated server machine in your organization, you install ADS on the same computer that you have FundRaiser installed on.
The decision to move exclusively to client/server was not an arbitrary one and the move is necessary for the continued development and improvement of the software. A lot of thought and discussion went into this decision, and since our relationship with your organization has only begun recently, I'd like to reassure you that this sort of event does not happen often, nor do we take it lightly. In the over twenty year history of the company we've only stopped supporting a product once before - FundRasier for MS-DOS.
I'd also like to reiterate that this is not a decision you have to make right now. The special pricing on the client/server upgrade ends on June 30, but support for your current version won't end until approximately mid-year 2014 - that's based on our planned release date for FundRaiser 5.0. So you have a while before you have to make the decision.
Even after the release of FundRaiser 5.0, any previous version of FundRaiser will continue to run for your organization. You are always welcome to stay with your current version and not worry about any future costs.