THE KKNTITKY KKItNKU Frirhn. April IS.
Giving Away, $50 Million Has Its Difficulties
By FRF.D M. IIECIIINGER
Giving away fifty million dollars wisely is one of tin most
difficult tasks. Giiug it away without making some enemies is
Last week the Ford Foundation announced that it will give
fifty million dollars to accredited, private four-yea- r
universities to help them raise faculty salaries.
This Is probably the most imTake some examples: six leading
non- governmental grant ever made to Eastern men's and
American higher education. It
comes at a time of crisis. It is
unprecedented in scope and aim.
Because it will have to single out
Institutions and overlook
others, it will be a delicate op- pration. The Ford Foundation
at this time is therefore understandably reluctant to discuss details. But these questions can be
asked and answered:
Who will be eligible for the Ford
undergraduate institutions who are
not primarily professional or voca
tional colleges.' 'Private" means
that they are mainly .supported by
funds: it includes denon-publ-
530 colleges will be eligible.
Why Is this grant needed?
Faculty salaries are dangerously
low. Merely to restore the salaries
of fun proiessors to tne purchasing
they enjoyed in 1940 would
an average national in- crease by 20.5 per cent. Even this
would leave them considerably beWar II
low the relative
income position in comparison with
other professions and trades.
find their professors' salaries at
70.5 per cent of 1940 purchasing
power; three leading Eastern worn-som- e
en's colleges at 78.7 per cent: five
sniall North Central and Pacific
colleges at 85.7 per cent. (Remem- ber that college teachers were not
getting rich in 1940 either!)
Why is this a special time of
A student's tuition pays only for
between 40 and GO per cent of the
cost of his education. High taxes
have made large personal endow
ment gifts hard to get. Total college enrollment may double within the next ten years to reach almost 5,000.000 by 1$75.
Therefore: teachers now at the
colleges must be held there; talented new teachers must be attracted and trained. This must be
done at a time of high employ- mcnt. high salaries and a highly
competitive labor market.
member that the future of
versal public education and there- f0re of the country depends on
the quality of higher education.)
How many will got how much?
No definite statement is avaij-abl- e.
But a safe guess is that not
fewer than fifty, and probably not
more than about 100 institutions
will be chosen. This means nobody will get more than $1,000,000.
The range will probably be between that maximum and $500,000,
though a few may get less.
From the foundation's point tf
view it mi?ht have been easier to
scatter the money over the entire
landscape and make nobody mad.
But splitting even $50,000,000 into
too small fragments would turn the
plan from a
to improve the salary pattern into
417 East Maxwell
better baraininc position
ppMte their lesHature;
i. In the hlKh enrollment
ahead the tak rf the financially
weak but ui ademu'allv mpi.h
colleges will U to safeguard sthi!astie stanl.ud;
one foundation spokrvman. "has a
special responsibility to private in
Otr.ir oi.ers In tne ana nn!
the .ic!ettin will airtv
try for a wide regional
will have to ledouble thrir r f f i t
to keep up with the leeipients of
the grant. This may help then
fund ratlins and may jwrMiwW
some donors not to attach hmituik
strli.es to their gifts.
Coi porations, now inrrrastngh
looking for whe ways of making
their contributions to hiuher education, may imitate the Fnrtl
plan and give similar support t
some worthy .schools which will
Will the plan he an attempt to
No. If it were, it might favor
school that have been spending
a j.reat deal of money on other
What about those who will be
items but have irresponsibly saved
on faculty pay.
Will there be ome 'hidden"
Some will be plain mad. They
will accuse the Ford Foundation of
a multitude of sins. They will
The college that gets a grant point out mistakes. A foundation
and must match it has a power- spokesman said: "A scheme such
operaargument. Alumni as this cant be a card-fil- e
can be told that by not giving they tion. We will have touse om
not only withhold their own con- Judgment and that of qualified
We must also have the
tribution, but jeopardize the ord
right to make mistakes."
How and when will the selection
In the near future a general
letter will go to the' eligible in-
stitutions, explaining the plan.
Some time later a special advisory
committee will send out a more
detailed letter and a questionnaire.
The information received through
that questionnaire, plus unspecified expert background research
and examination by the advisory
committee, will lead to the final
No applications or statements of
needs will be considered.
No dates have been set. But it
is likely that the recipients will
be notified some time in 195G. They
will then be given up to two years
to raise the matching funds. The
first benefits therefore should be
felt in 1957-5.
Why were state and municipal
Many cf them have been able
to improve faculty salaries more
effectively than private eolleues.
Six larpe state univer.-itie-s
salaries of full professors up to
92.8 per cent of 1940 purchasing
U. K. Day
31 fine knit suits in
dark cf high shades.
Were 35.95 to 89.95
35 Tweed and ccmel hair sports jackets.
Were 25 95 to 45.95
c0 junior. dresses, cotton, faille, sheer.
Were 19 95 to 69 95
Skirts in tweed, flannel, gabardine,
permanently pleated-wool- .
Were 10.95 to 35 95
While the needs of publicly fiHow will it work?
nanced institutions are lully apWhen a college is selected, it will preciated, the fact.shue:
be told how much money it is to
1. These schools have a tancible
get and with how much it must
source of funds the legislature;
match the grant. The matching
2. If the foundation plan will
ratio will be determined for each
The minimum will be raise salaries in some leading
in the state, the state
one dollar for one dollar. The
probably be three universities, in order to compete
dollars for each foundation dollar. in the faculty hiring market, will
The match;:. money mut le
raided; it may not come fi:n
hinds the tollepe alieady lias. The
total amount must be added to
the endowment and will then-loryield a return at the gtnernl rate
of between 4 and 4 5 per cent. The
piii.cipal of the foundation part
of the amount cannot be touched:
cnlv the income may be used. Tim
leMriction does not apply to the
matched part of the total, but
whether only the interest or part
of the capital is used, it can be
applied only to faculty salaries.
Take an example: A collepe gets
$500,000. It is required to match
it one to one. A total of $1,000,000
is added to the endowment, earmarked for faculty salary improvement. At a rate of return of 4 per
cent i somewhat less than the current average), the college' will have
an annual minimum of $40,000
available to raise faculty salaries.
It will continually have at least
$20,000 a year, even if it cuts seriously into the capital of the
In other words, the effect of this
plan is permanent rather than
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