Grants are one of the sources of funds that are offered

WK7 – 512 – DQs





Question 2

Grants are one of the sources of funds that are offered as gifts and donation to a nation or institutions from friends or other supporters. According to Barr, the grants that are received in the higher education are mainly from the alumnus and government. The grants constitute part of the budget in many of the universities especially the public universities like Oxford University and the University of California and others. Grants are very much essential for the efficient running of the institutions because it constitutes millions of dollars. For example, university of California receives approximately $1.5 million every year for the management of the school. This is used in the payment of the staff, building projects, running of the support for needy students and others.

The constant flow of grants to the institution where I study will be of great importance and will aid in doing a lot of projects. I perfectly believe that if the institution can get $1.5 million grant each year from either the government or the supports, the dead projects like construction of the new accommodation for the students (Howells, 2006). Moreover, the funds would also help the students who are unable to pay for their tuition fees through the provision scholarship programs. In addition to the above benefits, the grants will increase and aid to stabilize the current unstable funding of the institution through expansion and filling of the essential gaps that might exist in the society. Perhaps, the questions include; should grants be subject to tax or not? And again is it okay for one institution to receive many awards while others don’t get even one? Is there the policy that guides the issue of grants (Arrow, 2000).


Arrow, K. J. (2000). To profit or not to profit: The commercial transformation of the nonprofit sector. Cambridge University Press.

Barr, M. J., & McClellan, G. S. (2010). Budgets and financial management in higher education. John Wiley & Sons.

Howells, J. (2006). Intermediation and the role of intermediaries in innovation. Research Policy, 35(5), 715-728.

Question 3

The most typical financial crisis is the great depression that took place in the year 2008. During this period many of the banks and other financial institutions closed up as many people lost their jobs due to excessive borrowing that was not being controlled. In the last decade, most of the establishments in the United States of America such as the University of Florida as some of them also closed down due to the increased inflation. According to the article, the universities also engaged in the borrowing process to meet up the needs and the demand of the budgets. The loans that the university took from the banks were not spent wisely through finance generating activities but were used to build some of the social amenities like the student centers. Additionally, the accommodation for some of the staff was also made as the top leaders in the university gets fancy vehicles (Barr & McClellan, 2010).

The end of the crisis was important and very good time for the university as they start a new environment to pay for the debts that were outstanding (Kotz, 2009). The government and other supporters of the economy joined hands to assist the university pay the debts and get rid of any attachment with the banking institution’s policies of taking the some of the facilities within the school when they failed to meet up with the agreement. The availability of the grants and other funds through the cut of the budget was essential and aided the university in recovering to normality. The students were also made to pay more of the tuition fees as the support assistance for the scholarship was cut to maintain the figure and not reduce expected value (Hill, 2008).


Barr, M. J., & McClellan, G. S. (2010). Budgets and financial management in higher education. John Wiley & Sons.

Hill, C. (2008). International Business: Competing in the global market place. Strategic Direction, 24(9).

Kotz, D. M. (2009). The financial and economic crisis of 2008: A systemic crisis of neoliberal capitalism. Review of Radical Political Economics, 41(3), 305-317.

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