Consumption Capital and Distinctive Characteristics of Donors to Education

Abstract:Consumption capital applies to experiences that require early investment in relatively less pleasant practice in order to increase future enjoyment. Some types of charity, such as education, represent support for causes that require such accumulated practice (consumption capital) in order to fully appreciate their benefits. This paper explores several implications of a consumption capital accumulation model applied to educational philanthropy. Regression results indicate that level of education is positively associated with giving to education as well as giving exclusively to education, and religious practice and education donations are complementary goods. This study helps understand personal characteristics that may indicate greater likelihood of donating to an educational organization, thus aiding educational organizations in targeting potential donors. Fundraising has become essential for schools and universities during this era of Covid-19, yet fundraising revenue is expected to decline and an increasing number of colleges are expected to close.