Finance management

The Ford Foundation expects to award $15 million in grants to public high schools to develop new ways to teach the fundamentals of engineering that prepare students for university-level material. The grants will extend over a 10-year period and will create an estimated savings of $1.5 million per year in faculty salaries and student-related expenses. The Foundation uses a rate of return of 6% per year on all grant awards. This grants program will share Foundation funding with ongoing activities, so an estimated $200,000 per year will be removed from other program funding . To make this program successful, a $500,000 per year operating cost will be incurred from the regular M&O budget.

Use the B/C method to determine if the grants program is economically justified.

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