An Econometric Analysis Of Aging And Alumni/ae Altruism

Abstract

While many have studied the motivations for altruism, this paper analyzes the link between aging and alumni/ae giving and, in particular, the changes in donations that are associated with retirement. An econometric methodology is provided that can be used to predict changes in giving based on the aging process. The empirical results, based on the giving of several classes of a small liberal arts college, demonstrate that giving variations (between classes) can be largely explained by age/retirement variables. In addition, possible cohort effects are introduced by adding variables pertaining to the economic conditions for the year in which a class graduated. It is found that starting out (graduating) in poor economic conditions will curtail giving throughout one’s life.