This story has been updated to include the new operational structure.
Allegiance Group and The Pursuant Group, two well-known fundraising agencies, have merged. Pursuant will remain a brand under the Allegiance Group umbrella.
Allegiance Group in Fargo, North Dakota, has worked with nonprofits for approximately 40 years. Pursuant, based in Dallas, has been in the industry since 2001. Pursuant began with a focus on technology and digital services for nonprofits and evolved into a full-service fundraising firm. Allegiance Group got its industry foothold working with NPR.
Pursuant brings with it to the deal the proprietary GivingDNA wealth screening and data analytics platform that focuses on donor behavior and identifying potentially larger gifts and sustaining donors.
Terms of the deal were not disclosed. Rich Aukland, CEO of Allegiance Group, will be the CEO of the combined entities. Trent Ricker, CEO and president of The Pursuant Group, will be the chief strategy officer and will lead the fundraising agency of the combined entities. Steve Collins of Pursuant will remain the chief financial officer and Matt Gustafson of Allegiance will be the chief operating officer. Gustafson had been chief financial officer of Allegiance .
Insiders told The NonProfit Times that details are still being worked out between the firms as to the final structure. There will be brand equity research to determine the best branding route regarding names. Private equity firm 424 Capital in Wakefield, Massachusetts, is an investor in Allegiance Group. The firm at one point was an investor in fundraising firm RKD Group in Dallas.
Pursuant’s leadership has been looking at options for a few years, whether to acquire another firm or to seek a merger. The discussions with Allegiance Group heated up this past August and a non-disclosure agreement was signed in the December/January time frame. The final deal was signed this past Thursday.
“The merger of Allegiance Group and The Pursuant Group signifies an influential step forward in the nonprofit sector. Allegiance Group and The Pursuant Group serve complementary market segments, providing an opportunity for collaboration and expansion,” according to a statement released by the firms. Insiders told The NonProfit Times that there isn’t much overlap in nonprofit silos served by the firms.
“The goal of Allegiance Group is to meet every individual client where they are at, and we want to provide our clients with services that are broad and deep enough to be truly impactful in supporting their mission,” said Aukland via a statement. “Pursuant and Allegiance Group together allow us to accomplish that goal without compromise.”
Ricker said via the statement: “Our strengths and experience complement one another in a way that uniquely creates a truly full-service agency and software company that can serve organizations of all sizes and provide expertise in all key marketing, fundraising, analytics, digital, and technology services.”
