Logistic Regression and Probability of Business School Alumni Donations: Micro-data Evidence

Abstract

This paper analyzes the propensity of business school alumni to give (or not give) cash donations to their alma mater. A utility maximization model is estimated using logistic regression and survey sample data of 1955–56 to 1990–91 graduates of a large US category I Carnegie Foundation research doctorate public university. Maximum likelihood estimates of the model parameters fitted the observed data well. The probability of alumni giving has positive and strong associations with: specific fields of major; time since alumni graduated; other family members graduating from this university; children who are 18 years or older not residing at home; number of other cash-giving alumni known; household income levels; occupations of alumni and spouses; giving of cash gifts to other educational institutions and a number of charitable organizations with global outreach; charitable volunteering of time; availability of matching gift programmes at work; and how alumni view their educational experiences at the business school and university. However, the probability of alumni giving is adversely impacted when child(ren) who are 13 years or older reside at home. Implications of these results for the efficient allocation of scarce alumni fund-raising resources are discussed. © 1993, Taylor & Francis Group, LLC. All rights reserved.

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Education Economics

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