ERIC Number: ED529752
Record Type: Non-Journal
Publication Date: 2012-Feb
Abstractor: As Provided
Reference Count: 0
Does Generosity Beget Generosity? Alumni Giving and Undergraduate Financial Aid. NBER Working Paper No. 17861
Meer, Jonathan; Rosen, Harvey S.
National Bureau of Economic Research
We investigate how undergraduates' financial aid packages affect their subsequent donative behavior as alumni. The empirical work is based upon micro data on alumni giving at an anonymous research university. We focus on three types of financial aid, scholarships, loans, and campus jobs. A novel aspect of our modeling strategy is that, consistent with the view of some professional fundraisers, we allow the receipt of a given form of aid per se to affect alumni giving. At the same time, our model allows the amount of the support to affect giving behavior nonlinearly. Our main findings are: 1) Individuals who took out student loans are less likely to make a gift, other things being the same. We conjecture that this phenomenon is caused by an "annoyance effect"--alumni resent the fact that they are burdened with loans. 2) Scholarship aid reduces the size of a gift, but has little effect on the probability of donating. The negative effect of receiving a scholarship on donations decreases in absolute value with the size of the scholarship. We do not find any evidence that scholarship recipients give less because they have relatively low incomes post graduation. 3) Aid in the form of campus jobs does not have a strong effect on donative behavior.
Descriptors: Evidence, Research Universities, Alumni, Probability, Scholarships, Undergraduate Study, Student Financial Aid, Donors, Campuses, Employment, Correlation, Debt (Financial), Paying for College
National Bureau of Economic Research. 1050 Massachusetts Avenue, Cambridge, MA 02138-5398. Tel: 617-588-0343; Web site: http://www.nber.org
Publication Type: Reports - Research
Education Level: Higher Education
Authoring Institution: National Bureau of Economic Research