R Fundraising will become a subsidiary of the group but will retain its brand name and structure, with Gordon Michie, a trustee of the Institute of Fundraising, remaining managing director and its founder, Hugh McCaw, a fellow of the IoF, taking on the role of director of strategic accounts.
The move gives Fundraising Initiatives access to an extra 200 fundraising staff and to offices in Manchester and Dunfermline, Scotland.
The deal – which was completed on 23 January – emerged after R Fundraising approached its new parent company seeking investment.
Martin Jervis, chief operations officer at Fundraising Initiatives, who led the acquisition, said his company had been attracted to the deal because of R Fundraising’s donor investment capabilities and Scottish reach. He declined to reveal the cost of the move.
He said his company was due today to launch a behavioural psychology research programme to help it measure the most effective ways to acquire and retain different types of donors. Jervis said it would be useful for R Fundraising’s staff to participate in the programme because their numbers would improve the reliability of the results.
The 200 staff employed by R Fundraising will join Fundraising Initiatives’ workforce of about 225. Jervis said Fundraising Initiatives employed hundreds more staff through agencies.
The services offered by the combined group will include face-to-face fundraising and stewardship services, lotteries, payroll giving through its subsidiary Workplace Giving and payment processing.
"Fundraising Initiatives is the right choice for our clients and us," said McCaw in a statement. "We remain an autonomous culture and brand. The organisations complement each other and I am sure that will become more evident to the sector going forward."