MCG will terminate relationship with MCG Foundation, Inc.

Toni Baker  -  2008 June 12

Medical College of Georgia President Daniel W. Rahn Thursday notified the chair of the Medical College of Georgia Foundation, Inc. that the university is terminating its relationship with the foundation.

Citing a lack of alignment with MCG's priorities, Dr. Rahn told MCG Foundation Board Chair William E. Mayher III that the university will start a new foundation. However, if all board members of the MCG Foundation, Inc. voluntarily resign by June 27, the current foundation could be reconstituted.  

"Today the Medical College of Georgia is in the midst of an exciting expansion plan that is critical to our state," said Dr. Barry Goldstein, MCG provost. "We are increasing our medical and dental school class sizes, constructing buildings, opening new campuses, adding distance- learning sites for our Schools of Allied Health Sciences and Nursing and working with the city of Augusta to acquire adjacent property that will enable this important growth. At this time, perhaps more than ever in our history, we need everyone working together. Unfortunately, the Medical College of Georgia Foundation's priorities are not always aligned with institutional priorities. We need a foundation that shares our vision."

Dr. Rahn, a member of the MCG Foundation board, will appoint members of a reconstituted MCG Foundation board or a new foundation will be formed and begin accepting charitable gifts to MCG within approximately 90 days. The current affiliation agreement with the MCG Foundation requires a 90-day notice of a change in affiliation status.

If a new foundation is formed, MCG Foundation will continue to manage existing assets and new philanthropic gifts will be placed in the new foundation once it is operational, said Andrew Newton, MCG vice president for legal affairs. The MCG Foundation cites assets of $152 million in its 2006-07 Annual Report.

The University System of Georgia Board of Regents passed a unanimous resolution Wednesday, June 11 supporting President Rahn: "In accordance with Section 1905 of the policy manual of the Board of Regents relating to the cooperative organizations, the Board hereby authorizes the President of the Medical College of Georgia to take any and all actions, including termination of all memoranda of understanding with the Medical College of Georgia Foundation, Inc., which will most effectively advance the interests of the Medical College of Georgia."

For more information about this change, visit www.mcg.edu/ua/foundationfaq.html