Error: System.Exception: Unable to open database connections - when accessing the Raiser's Edge Luminate Online Plugin

When accessing the Luminate Plugin for Raiser's Edge, users can experience an extensive error message that starts with "System.Exception: Unable to open database connections: A network-related or instance-specific error occurred while establishing a connection to SQL Server." and goes on from there. 
The following steps have been proven successful by some clients experiencing this issue:

1. Uninstall the Raiser's Edge
2. Uninstall the Luminate Online Plugin
3. Delete all temporary Internet files
4. Reboot PC
5. Empty the system, security, and application log files
6. Reinstall the Raiser's Edge
7. Reinstall the Luminate Online Plugin
8. Log into the Raiser's Edge
9. Open the Luminate Online Plugin
10. Click Options and click Test Connection

If the above steps do not correct the issue, please proceed to contact support.
 

Steps to Duplicate

1. Log into Raiser's Edge
2. Click on the Luminate Online Plugin
3. Error opens on screen

Environment

 Raiser's Edge

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