This is caused by values in the extended properties of the database that are unique to the Blackbaud OnDemand environment. In SQL Server management studio you can:
1. Right click the database
2. Select properties
3. Select extended properties
4. Highlight and delete and row with a reference to hosting
5. Click save
Once this is done and the app pool is recycled on the Web server the fields should now be editable.
Steps to Duplicate1. Select Email Alerts from the Administration functional area
2. Click edit alert settings
Note that the fields are all grayed out.