Yet they frequently require universities to release the grantee from some or all teaching responsibilities. These professors are often senior scholars, showcase professors whose wisdom and learning is supposed to attract and challenge the finest undergraduate and graduate students. The undergraduate student cannot take classes from these faculty members, and is already the loser in this deal. Or, perhaps, an underpaid and overworked graduate student may lead the class. Teaching may or may not suffer, but clearly both the graduate student and the undergraduates are exploited in this case.
Grants usually have to be administered by people at the school that receives the money.
One reason is the increasing number of staff present whose main function is to administer grants and corporate money. And once they are on staff, they rarely leave, even when the money dries up. That's why outside grants to professors often don't really save universities much, if any money. So, critics charge, the recent upsurge in outside funding by corporations hurts teaching, and may in fact drive up the cost of an undergraduate education at Penn. That's a bottom-line reason why every student at the University should be concerned about the presence of corporate money.