An Analysis of Alumni Donation

This paper reviews the economic and social literature on alumni's giving behaviour and outlines the factors that motivate alumni to contribute to their alma mater. In this context, it provides a theoretical framework for making alumni donations tax exempted, which can increase the funds raised by any university. The paper also distinguishes between the alumni who donate and those who do not and highlights the factors that characterise their amount of donations. In addition, the paper brings out the benefits to any university from alumni contributions, and hence suggests ways by which a university can target contributions from their alumni.