If a student with poor parents in that age group get's a free iPod, his peer and parents are likely to notice.

The idea that you can give a school a grant worth $800,000 and only one adult in the school knowing about the grant also seems strange.

If a lot of the student got the second iPod makeover, and iPod touches were more expensive at the time the whole thing might have cost $20000. That means $780,000 just disappeared. If that kind of money disappears people are bound to be interested.