The evidence that suggests local businesses are more generous than chain stores is primarily reflected in the statement that "local charities report significantly higher donations from local businesses." This indicates that local businesses tend to contribute more to charitable causes compared to chain stores.
Based on the options you provided, the best choice would be:
D) local businesses make larger donations to charity.
This is the option that directly connects to the idea of generosity and charitable contributions in the context provided by Professor Lucy Dobbs.