Data on how teaching effectiveness is affected by faculty incentive grants are presented based on a study of a faculty incentive program at Messiah College in Pennsylvania. Its "Excellence in Teaching" program offers awards of up to $5000 each annually to four faculty members based on student evaluations of teaching performance. Applicants must show evidence of effective advising, submit a course evaluation completed by a peer, and have a letter from the department chair indicating quality teaching and advising. They must also submit a proposal for how the money will be used (travel, research, or professional development project). Data for the statistical analysis were drawn from the faculty evaluation instrument Instructional Development and Effectiveness Assessment (IDEA). Each faculty member must have two courses each semester evaluated via IDEA. Summary institutional data for 20 instructional categories provided by the IDEA system were interpreted to see if there was a change in teacher effectiveness ratings during the years the grant program had been in effect. Individual teaching effectiveness measures were compared during the grant program time. Qualitative data were drawn from 10 faculty interviews asking for impressions of the grant program. Results indicate the following: the introduction of the incentive program has had no significant impact on teaching effectiveness; informative use of such rewards may increase motivation; and the program reflects an institutional desire to increase publishable works by faculty. Tables and the questionnaire are included. Contains 11 references. (SM)