The relationship between government and Bishop College in regard to federal funding and the effect of federal compliance is examined. The four significant impact components that comprise the study are historical impact, statistical impact, federal impact (positive and negative aspects), and operational/functional impact. Basic instruments used to secure input from the college community and participants responsible for the implementation of programs supported by federal funds were these: a questionnaire on Perceptions Regarding Federal Program Support; a questionnaire on Program Impact for Federally Funded Programs; and a table of statistical information regarding Bishop College and federal support. Four issues surfaced from the study: (1) the growth of the college because of federal funding; (2) an analysis of the welfare syndrome versus survival; (3) the benefits accrued to students and society; and (4) the impact of federal funding on administrative/teaching functions. Several recommendations are offered, such as that special consideration be given to Bishop College and other black colleges for special grants; that evaluation/monitoring mechanisms be improved to reduce excessive paper work; that there be a 50 percent forgiveness of loans received to construct facilities over the next ten years; and that planning grants be provided for continuous upgrading of planning. Appendices provide a list of fund-raising charts, a schedule of loans, federal programs received, and a comparison of private versus federal program funds. (LC)