The growth at fundraising firm RKD Group in Dallas, Texas continues with the acquisition of Heller Consulting, a strategy, planning and implementation provider of nonprofit technology and leadership training.
Heller Consulting, launched 1996 and headquartered in Bay Area of California, touts expertise in systems design and implementation and will be added to RKD Group’s existing fundraising and marketing solutions. The plan is to help nonprofits design, orchestrate and activate data and technology.
Heller Consulting will operate as a subsidiary of RKD Group. Founder Keith Heller will remain with the firm as a strategic advisor. CEO Jeffery Appell will be president of Heller Consulting, an RKD Group company.
Financial terms of the acquisition were not disclosed.
“The combination of RKD and Heller directly addresses two common challenges for nonprofits: foundational technology and data practices, as well as the strategic use of that technology to drive improved fundraising outcomes,” said RKD Group CEO Chris Pritcher.
Managers at many nonprofits rely on their vendor partners to handle data. Pritcher said the acquisition of Heller Group changes that dynamic. “The nonprofit needs to own and manage their own data for the trust we want to build with donors of the future,” said Pritcher.
Appell said that mission is important, and people and process have to be involved in the data practice. “We have to extend the conversation beyond data. A big part of what Heller does is use systems more efficiently,” said Appell. “It’s addressing the tech needs so can they can implement the strategies.” He referred to it as data governance.
“Our joint vision is to help design and usher in the new era of nonprofit marketing and fundraising through our combined commitment to connection,” said Appell. “Together, we can leverage technology, strategy and activations that create dynamic donor experiences for today’s and tomorrow’s donors.”
Pritcher said Heller’s consulting is in technology but also change management and in organizing people around technology.
The addition of Heller brings RKD’s headcount to 550, with 42 employees from Heller. RKD is working with 400 nonprofits and Heller brings 50 more. The number of overlapping clients is estimated at 10.
“This is a tremendous opportunity for the future of our companies and the fundraising industry,” Heller said in a statement. “Together, we can connect the dots for so many nonprofit clients we serve.”
RKD Group was formed in 2014 when LW Robbins Associates in Holliston, Massachusetts, a direct response fundraising agency, acquired KerstenDirect, based in Dallas, Texas. The companies merged operations and Tim Kersten was appointed CEO of the combined company. Kersten moved into the role of chairman in January 2023. Pritcher was brought in as chief executive officer.
In September 2019, RKD Group acquired Direct Point Group (DPG), a direct-response fundraising agency in Toronto, Canada. DPG was rebranded as RKD Direct Point, a division of RKD Group. The acquisition established RKD Group’s presence in Canada through a Toronto office. RKD was acquired by Incline Equity Partners of Pittsburgh, Pennsylvania in August 2022 from BV Investment Partners in Boston, Massachusetts.
Incline Equity Partners has been busy in the nonprofit space. Incline Equity Partners acquired iWave in October 2022. The firm had owned a stake in Foundation Source between January 2020 and September 2023, eventually selling the stake to GTCR, a private equity firm in Chicago. While terms of the deals were not disclosed, Incline Equity Partners is known to invest in growing companies with enterprise values of between $25 million and $750 million.
A new corporate umbrella called Kindsight was established this past February under which iWave, UC Innovation (which owns fundraising platform Ascend Fundraising Solutions), and NonprofitOS reside. iWave CEO Craig O’Neill is head of the new company. All three firms under the umbrella are funded by Incline Equity Partners.
Pritcher said the acquisition is funded from the RKD balance sheet, with RKD owning Heller, not Incline Equity Partners.
