The ways and means, types of relationships involved, and the conditions attached to the provision of funds accompanying the huge growth in federal sponsorship of college and university activities is examined. A historical review and analysis of the various factors that have entered into the relationship between colleges and universities and the federal government is presented. An attempt is made to describe and list all federal programs by type of award (grant, contract, etc.) and dollar amount that results in the transfer of federal funds to colleges and universities. The terms and conditions currently used in the various types of awards are also described, with some reference back to awards in previous years. The nature of the relationship between the federal government and academe with regard to various types of awards is assessed. Some of the conclusions resulting from the study include: (1) some of the problems encountered in federal funding can be traced back to the earliest grants in 1887 from the Department of Agriculture; (2) patent requirements are overly complicated but can be simplified by new legislation; and (3) mandatory cost-sharing continues to be irritating and expensive and should be eliminated. Attachments provide sample reporting forms and instructions for their use, the Office of Education agreement covering institutional participation in student financial aid programs, and the Chiles Bill (S. 431). (LC)