The Ford Foundation yesterday announced grants of half a billion dollars to colleges, universities, hospitals, and medical schools, of which $4,510,000 will be given to the University to raise faculty salaries. This may forestall the predicted rise in tuition believed to be earmarked for increased faculty salaries.
The grants, comprising the largest single donation in philanthropic history, are broken down into three categories: $210,000,000 for 615 "regionally accredited, privately supported colleges and universities"; $200,000,000 for hospitals; and $90,000,000 for medical schools.
The gift to the University was second only to the $5,000,000 received by New York University. In determining the amounts given to the various colleges, the Foundation said that it "did not attempt to compare the caliber of these many different colleges, their general excellence or reputation. This variety is a healthy aspect of our entire system of higher education. . ."
Each college received an amount approximately equal to its faculty payroll for 1954-55, the Foundation said.
The $90,000,000 for the medical schools has not yet been specifically allocated.
For the first ten years, income from faculty salary grants must be used to raise salaries. Thereafter both income and principal may be used for any purpose.
Announcements of a rise in tuition have been expected this year to finance a proposed increase in faculty salaries. This grant may put off such an announcement for the time being.
Pusey Praises Grant
Acknowledging the donation, President Pusey praised it as "a handsome gift indeed. The special intent--to improve faculty salaries--is unreservedly praise-worthy. We and all the institutions helped can be grateful for this splendid, imaginative effort to strengthen higher education in America at a moment when new enormous demands are about to be made upon it."
The money for the grants comes principally from the Foundation's holdings of Ford Motor Company stock which will be sold soon. It is estimated that the half billion dollar grant is about one-fifth or one-sixth of the total assets of the fund. The money will be paid in cash within 18 months, the committee said, but at least half of it will be available by July 1, 1956.
Other colleges receiving large gifts were the University of Chicago which will get $4,324,200, and Yale, recipient of $4,000,900.
The Massachusetts General Hospital, one of the Medical School's teaching hospitals, will receive a quarter of a million dollars from the foundation.