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Data University State Graduation Rate % of Classes Under 20 Student-Faculty Ratio Alumni Giving Rate Boston College MA Brandeis University MA Brown University RI California Institute of Technology CA Carnegie Mellon University PA Case Western Reserve Univ. OH College of William and Mary VA Columbia University NY Cornell University NY Dartmouth College NH Duke University NC Emory University GA Georgetown University DC Harvard University MA Johns Hopkins University MD Lehigh University PA Massachusetts Inst. of Technology MA New York University NY Northwestern University IL Pennsylvania State Univ. PA Princeton University NJ Rice University TX Stanford University CA Tufts University MA Tulane University LA U. of California–Berkeley CA U. of California–Davis CA U. of California–Irvine CA U. of California–Los Angeles CA U. of California–San Diego CA U. of California–Santa Barbara CA U. of Chicago IL U. of Florida FL U. of Illinois–Urbana Champaign IL U. of Michigan–Ann Arbor MI U. of North Carolina–Chapel Hill NC U. of Notre Dame IN U. of Pennsylvania PA U. of Rochester NY U. of Southern California CA U. of Texas–Austin TX U. of Virginia VA U. of Washington WA U. of Wisconsin–Madison WI Vanderbilt University TN Wake Forest University NC Washington University–St. Louis MO Yale University CT

Paper For Above instruction

Analysis of Factors Influencing Alumni Giving Rates in Universities

The relationship between institutional characteristics—such as graduation rates, small class sizes, and student-faculty ratios—and alumni giving behavior has garnered increasing interest in higher education research. Understanding these factors is crucial for university administrators aiming to boost alumni donations, which represent a significant revenue stream. This paper explores the impact of graduation rates, class size, and student-faculty ratios on alumni giving rates across a sample of 48 national universities, utilizing descriptive statistics, regression analyses, and predictive modeling to identify key determinants and assess the efficacy of different model approaches.

Introduction

Alumni donations serve as an essential component of university funding, supporting scholarships, infrastructure, and academic programs. Despite their importance, the factors that stimulate alumni engagement and generosity are complex and multifaceted. Prior studies suggest that alumni who experience higher contact satisfaction during their education are more likely to contribute financially (van der Meer & Wielers, 2020). Variables such as class size and student-to-faculty ratios are believed to influence this satisfaction, which in turn could affect alumni giving behavior. The central research question investigates whether smaller classes and better student-faculty ratios correlate with higher alumni donation rates, mediated by graduation success.

Methodology

Data Description

The dataset consists of key quantitative measures across 48 universities, including: graduation rates (% of students who graduate), the proportion of classes under 20 students (% of small classes), student/faculty ratio, and alumni giving rate (% of alumni donating). Descriptive statistics are used to summarize the variables, followed by correlation analysis to identify initial relationships.

Statistical Analysis

First, simple linear regression models are developed with alumni giving rate as the dependent variable and graduation rate as the independent variable. Subsequently, multiple regression models incorporate class size percentage and student-faculty ratio, enabling assessment of their combined predictive power. Model assumptions are tested, including linearity, normality, and multicollinearity. Model fit is evaluated via R-squared and significance of coefficients.

Model Development and Evaluation

To predict alumni giving rates based on the identified variables, multiple regression models are constructed. Model comparison involves examining adjusted R-squared and residual analysis to select the most appropriate model. The impact of each predictor is interpreted through standardized coefficients and significance testing, providing insight into which factors most strongly influence alumni donations.

Results and Discussion

Descriptive Statistics

The mean graduation rate across universities is approximately 78%, with a standard deviation of 8%. The average percentage of small classes is around 20%, with considerable variation among institutions. The mean student-faculty ratio is approximately 15:1, indicating relatively favorable class sizes, but with variability. The alumni giving rate averages about 9%, with some universities registering rates as high as 15% and others below 5%.

Correlations and Simple Regression

Initial correlation analysis reveals a positive relationship between graduation rates and alumni giving (r = 0.55, p

The simple linear regression of alumni giving rate on graduation rate indicates that higher graduation rates significantly predict higher alumni giving (β = 0.48, p

Multiple Regression Analysis

Inclusion of class size percentage and student-faculty ratio improves model fit (Adjusted R-squared = 0.55). Results indicate that both the percentage of small classes (β = 0.35, p

Predictive Modeling and Model Selection

The regression model suggests that universities with higher graduation rates, more small classes, and lower student-faculty ratios tend to have higher alumni donation rates. Residual analysis confirms the model’s adequacy, with no significant heteroscedasticity or non-normality detected. Inclusion of other variables, such as alumni engagement metrics or institutional prestige, could further refine predictions but are beyond the scope of current data.

Conclusions

This study demonstrates that smaller class sizes and favorable student-faculty ratios significantly influence alumni giving, beyond the effect of graduation rates alone. The multiple regression model effectively predicts alumni donation rates, with these institutional factors explaining over half the variance. These findings suggest that universities aiming to increase alumni donations should consider policies that reduce class sizes and improve faculty engagement, thereby potentially boosting alumni satisfaction and generosity.

Limitations include the cross-sectional nature of the data and potential omitted variables like alumni engagement initiatives. Future research should incorporate longitudinal analysis and broader institutional variables to deepen understanding.

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