Beating the Record: The Effects of Recognition and Competition on Senior Gift Participation Rates at a Liberal Arts College

Many higher education institutions solicit donations from their graduating class as a way to encourage a sense of cohesion among the class, strengthen its relationship with the college or university, and raise money for their alumni annual fund. Current literature suggests that many factors such as income, major, and extracurricular involvement while an undergraduate influence the amount given by alumni. These studies are effective at forming generalized hypotheses about an individual\u27s propensity to give and the size of their potential gift for those who are well-established in their careers after graduation. However, they do not form an understanding of the importance of a student\u27s last year as an undergraduate as a determinant for future giving nor do they address how young alumni are motivated to give to their alma mater. Given that current data show that young alumni are not giving as much as previous generations, such understandings are critical for these institutions (C. Clotfelter, 2003). Using data collected from a field experiment, in addition to current theories of altruism and charitable giving, this paper attempts to offer insights into what motivates students in their last year of undergraduate study and, by extension, young alumni to give to their alma mater