The Determinants of Donative Revenue Flows from Alumni of Higher Education: An Empirical Inquiry
Institutions of higher education are increasingly relying upon alumni giving and endowment earnings as sources of funding. This paper utilizes a new database on average alumni donations at the institutional level and institutional characteristics to explore the role that lagged institutional characteristics and policy have on subsequent donations to the institution. Our results confirm the noncontemporaneous effects of variations in the average scholastic achievement of matriculated students (a proxy for both student quality and student socioeconomic status) on subsequent donative revenue flows and indirectly address some of the open questions left by previous theoretical inquiries.
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