An Econometric Model of Alumni Giving: A Case Study for a Liberal Arts College

This econometric model of giving behavior will use the results from annual surveys on individual alumni in a case study based on the donations at a liberal arts college. By using pooled cross-section and time series data, we relate the size of contributions to individual characteristics of the alumnus and to campus and national events over time. Within the cross sectional data, we will look at the effects of household income, fraternity and sorority affili ation, family status, distance from the college, etc. Nationally, the factors that will be studied are the unemployment rate and the stock market crash, and changes in the tax laws. With a donation model, an educational institution can identify those factors which are important (and those which are not important), and measure the magnitude of the impacts. This will help liberal arts colleges determine which areas need to be stressed in fundraising efforts.