The new Institute will now direct the competition that awards stipends for governmental innovation, previously funded by the Ford Foundation and organized by KSG.

The Ford Foundation, instead of giving money to KSG every two years to fund the program, decided to give $50 million to ensure that KSG could continue the program in perpetuity.

"It's a tribute to the program and to the Kennedy School that the Ford Foundation felt it wanted to make this statement," said Ford Foundation senior program officer Michael Lipsky.

One of the program's major success stories is the initiative "Wisconsin Works," developed by former Wisconsin Governor Tommy Thompson to move welfare recipients to the workforce.

The Ford Foundation has sponsored similar programs promoting government reform around the world, programs that will now be overseen by KSG.

"The Ford Foundation provided the money but not the central structure [for these programs]," said KSG official Doug Gavel. "Now, the Institute will provide the central structure for all of them."