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Undergraduate Financial Aid and Subsequent Alumni Giving Behavior

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  • Kelly Dugan
  • Charles H. Mullin

    ()
    (Department of Economics, Vanderbilt University)

  • John J. Siegfried

    ()
    (Department of Economics, Vanderbilt University)

Abstract

Data on 2,822 Vanderbilt University graduates are used to investigate alumni giving behavior during the eight years after graduation. A two stage model accounting for incidental truncation is used to first estimate the likelihood of making a contribution and second estimate the average gift size conditional on contributing. The type of financial aid received as an undergraduate appears to have a greater influence on subsequent alumni generosity than the amount received. Adding some scholarship to a loan-only package or eliminating all loans from a mixed loan-grant package increases the likelihood of a subsequent contribution. Increasing the total size of the package or altering the proportions of an already mixed package appears to be inconsequential for future donations. Students who receive small merit scholarships contribute more as alumni than students who receive either no merit scholarship or a large merit scholarship.

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File URL: http://www.accessecon.com/pubs/VUECON/vu00-w40.pdf
File Function: First version, 2000
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Bibliographic Info

Paper provided by Vanderbilt University Department of Economics in its series Vanderbilt University Department of Economics Working Papers with number 0040.

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Date of creation: Oct 2000
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Handle: RePEc:van:wpaper:0040

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Web page: http://www.vanderbilt.edu/econ/wparchive/index.html

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Keywords: Alumni contributions to colleges; alumni donations;

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  1. Clotfelter, C. T., 2003. "Alumni giving to elite private colleges and universities," Economics of Education Review, Elsevier, Elsevier, vol. 22(2), pages 109-120, April.
  2. Joseph G. Altonji & Thomas A. Dunn, 1991. "Relationships Among the Family Incomes and Labor Market Outcomes of Relatives," NBER Working Papers 3724, National Bureau of Economic Research, Inc.
  3. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, Econometric Society, vol. 47(1), pages 153-61, January.
  4. Monks, James, 2003. "Patterns of giving to one's alma mater among young graduates from selective institutions," Economics of Education Review, Elsevier, Elsevier, vol. 22(2), pages 121-130, April.
  5. Eckel, Catherine C & Grossman, Philip J, 1998. "Are Women Less Selfish Than Men? Evidence from Dictator Experiments," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 108(448), pages 726-35, May.
  6. Brendan M. Cunningham & Carlena K. Cochi-Ficano, 2002. "The Determinants of Donative Revenue Flows from Alumni of Higher Education: An Empirical Inquiry," Journal of Human Resources, University of Wisconsin Press, vol. 37(3), pages 540-569.
  7. Clotfelter, Charles T., 1985. "Federal Tax Policy and Charitable Giving," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226110486, 01-2013.
  8. Ethel B. Jones & John D. Jackson, 1990. "College Grades and Labor Market Rewards," Journal of Human Resources, University of Wisconsin Press, vol. 25(2), pages 253-266.
  9. Baade, Robert A. & Sundberg, Jeffrey O., 1996. "What determines alumni generosity?," Economics of Education Review, Elsevier, Elsevier, vol. 15(1), pages 75-81, February.
  10. Charles T. Clotfelter, 1985. "Federal Tax Policy and Charitable Giving," NBER Books, National Bureau of Economic Research, Inc, number clot85-1, July.
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Cited by:
  1. Jonathan Meer & Harvey S. Rosen, 2012. "Does Generosity Beget Generosity? Alumni Giving and Undergraduate Financial Aid," NBER Working Papers 17861, National Bureau of Economic Research, Inc.
  2. Jonathan Meer & Harvey S. Rosen, 2008. "The Impact of Athletic Performance on Alumni Giving: An Analysis of Micro Data," NBER Working Papers 13937, National Bureau of Economic Research, Inc.
  3. Monks, James, 2003. "Patterns of giving to one's alma mater among young graduates from selective institutions," Economics of Education Review, Elsevier, Elsevier, vol. 22(2), pages 121-130, April.
  4. Holmes, Jessica, 2009. "Prestige, charitable deductions and other determinants of alumni giving: Evidence from a highly selective liberal arts college," Economics of Education Review, Elsevier, Elsevier, vol. 28(1), pages 18-28, February.

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