Determinants of Alumni Giving Rates

Abstract

This manuscript examines the determinants of alumni giving rates. The data set is derived from U.S. News & World Report and comprises 196 educational institutions. The combination of decreased state funding for education and increasing costs of education has increased the need to find alternative sources of funds. Alumni donations provide the funds needed along with the signal that alumni are proud of their alma mater. Regression results indicate that the primary determinants of alumni giving rates are institutional acceptance rate, amount of average student debt, percent of students receiving Pell Grants, cost of room and board, value of the institution's endowment, public versus private institutions, percent of full-time students, and percent of female students.