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The Solution

In FY25, Philly House took the unprecedented step of partnering with RKD Group, marking the first time in the mission’s long history that an external agency was trusted to manage their donor engagement and all fundraising campaigns, including direct mail and online digital platforms. Recognizing the critical state of donor attrition, RKD implemented an aggressive, audience-first approach focused on: 

• Enhanced digital outreach paired with strategic direct mail campaigns, particularly targeting mid-level and major donors. 

• Development of specialized direct mail appeal packages aimed at reactivating lapsed donors and bolstering sustainer programs. 

• Innovative digital campaigns around key fundraising moments, such as Thanksgiving, Christmas, Year-End and Easter, complemented by targeted digital media spend. 

RKD emphasized brand consistency across all fundraising materials, effectively safeguarding Philly House’s renewed brand identity and reputation and providing seamless consistency of messaging across all communication channels.

Tactical Execution: RKD executed a robust multi-channel strategy in their initial year of partnership: 

• Tailored donor packages specifically designed to engage general, mid- and major-level donors. 

• Implemented sophisticated segmentation―a first for Philly House―creating customized packages, including highly personalized major-donor packages featuring handwritten notes and sticky notes, perceived authentically by donors as coming directly from Philly House leadership. 

• Strategic digital media investments leading to successful donor acquisition and reactivation, addressing the attrition challenge. 

• Consistent integration of Philly House’s brand voice across digital and direct mail materials, significantly elevating donor experience and perception, replicating Philly House’s branding with complete fidelity. 

• Data-driven decisions based upon modeling solutions to leverage that data to better identify, understand and group Philly House’s donors for precision targeting.  

• Performance Reporting, another first for Philly House, which now drives current/future fundraising strategies based on not wasting precious resources that could be put toward the mission.  

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The Results

The strategic partnership with RKD led to significant turnaround and measurable growth: 

• Revenue Growth: Global gross revenue was projected to decrease by 2% ($47K) in FY25 (with data through March), driven by a steep 16% (-$139K) decline in exceptional giving. Excluding exceptional gifts, revenue was up 7%. 

• Return on Investment: Initial projections forecasted an ROI of 4.8; however, the actual ROI achieved dramatically exceeded expectations at over 13. 

• Major-Donor Performance: The major-donor package specifically designed for Thanksgiving and Christmas achieved an exceptional ROI of 33:1, significantly outperforming industry benchmarks. 

• Mid & Major Giving: These exceeded industry benchmarks in both donor quantity and revenue generated, laying a strong foundation for sustained future growth. 

• Sustainers Program: A 5% increase in sustainer revenue was projected, with a 6% growth in active sustainers, ensuring long-term revenue stability. 

• Donor Retention: Donor retention improved by an impressive 36%, significantly curbing attrition and securing stable revenue streams. 

• Core Donor Strength: Core donor contributions rose dramatically to account for 73% of gross revenue in FY25, up from 58% in FY24, demonstrating enhanced donor loyalty and deeper engagement. 

Looking Ahead: Philly House and RKD Group are set for continued growth, planning aggressive expansion of direct mail acquisition efforts and strategic donor retention initiatives in FY26 and beyond. With clear evidence of recovering revenue and improved donor retention, Philly House is optimistic about achieving sustained growth and deeper donor relationships moving forward. 

This transformative multi-year journey highlights RKD Group’s ability to strategically pivot and rejuvenate donor engagement, achieving meaningful results even amidst complex challenges like rebranding and attrition. The effective collaboration between Philly House and RKD not only safeguarded the mission’s identity but also provided a proven blueprint for sustained revenue growth and donor loyalty in the nonprofit sector. And now, with RKD’s 360-degree data analytics ecosystem, insights will drive future strategic recommendations, custom solutions to Philly House’s local market, and long-term growth strategies that will propel them ahead of the competition. 

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