<div style="font-weight: bold;" class="titlegroup"> <div class="title-document"> Alumni Donations and Colleges'Development Expenditures: <span class="i">Does Spending Matter?</span> </div> </div> <div class="author-info"> <span class="name"><span class="forenames">W<span class="smallcapitals">illian</span> B.</span> <span class="surname">H<span class="smallcapitals">arrison</span></span>*</span>, <span class="name"><span class="forenames">S<span class="smallcapitals">hannon</span> K.</span> <span class="surname">M<span class="smallcapitals">itchell</span></span>,*</span> <span class="name"><span class="forenames">S<span class="smallcapitals">teven</span> P.</span> <span class="surname">P<span class="smallcapitals">eterson</span></span>*</span> <div class="addresses"> <span class="address"><a class="invisible-anchor" name="a1"> </a> <span id="a1"><span class="number">*</span>Willian B. Harrison, PhD., is associate professor of economics and Shannon K. Mitchell and Steven P. Peterson are assistant professors of economics at Virginia Commonwealth University, 1015 Floyd Avenue, Richmond, VA 23284-4000. Gratitude is expressed to the referees of the Journal.</span></span> </div> </div> <div class="header-footnotes"> <div class="bpg40copyright"> Copyright 1995 American Journal of Economics and Sociology, Inc. </div> </div> <div xmlns="http://www.w3.org/1999/xhtml" class="abstract-content" id="abstract"> <div class="summary"> <div class="header_divide"> <h1 class="abstract-title" id="h0">ABSTRACT</h1> </div> <table> <tbody> <tr> <td>
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</td> </tr> </tbody> </table> <p class="para">Since college development officers supply recognition to alumni and seek donations in return a model is devised wherein this exercise of market power in the exchange is included. Data for three years is used from eighteen universities and colleges-public and private, large and small, research and teaching oriented. The findings indicate that schools with higher <span class="i">development</span> costs generate substantially more donations. Several demographic characteristics of the student body were tested. <span style="font-weight: bold; text-decoration: underline;">Schools with higher participation in</span> <span style="font-weight: bold; text-decoration: underline;" class="i">fraternities</span> <span style="font-weight: bold; text-decoration: underline;">and</span> <span style="font-weight: bold; text-decoration: underline;" class="i">sororities</span> <span style="font-weight: bold; text-decoration: underline;">have higher giving</span>, while schools with a higher proportion of part-time <span class="i">students</span> have lower giving. <span style="font-weight: bold; text-decoration: underline;">Surprisingly, having an NCAA Division I</span> <span style="font-weight: bold; text-decoration: underline;" class="i">athletic program</span> <span style="font-weight: bold; text-decoration: underline;">has no significant effect on alumni giving.</span> Likewise, <span class="i">alumni donations</span> seem independent of whether a school is public or private, or is or is not a research institution. Finally, the size of a school's <span class="i">endowment</span> has no predictive value, but the level of annual bequests is strongly positively related to <span class="i">alumni giving.</span></p> </div> </div>