IU Foundation files lawsuit to have grant money returned

The IU Foundation filed a lawsuit Tuesday against the George E. Archer Foundation, requesting the return of a $600,000 grant to support children’s gardening at IU’s Hilltop Garden and Nature Center.

The grant was donated by George Archer and was left to the University in his will asking that the money be used “for the general support of the Hilltop Garden and Nature Center of Indiana University.”

In 2008, the grant was given to the Hilltop Educational Foundation with the IU Foundation acting as liaison.

But in April , the Hilltop Educational Foundation changed it name, to the George E. Archer Foundation, and its mission statement.

“As I understand it, their purpose now is to support children’s gardening in a multi-county area,” Barbara Coffman, communications director for the IU Foundation, said. “But the donor’s intent was to support gardening at Hilltop.”

The Archer Foundation’s new purpose, as stated on their website, is “to help boys and girls learn about gardening in our community in South Central Indiana.”

“The new purpose doesn’t match the donor’s intent as stated in his will,” Coffman said.
One month after the name change, representatives from the Archer Foundation and the IU Foundation met to discuss the IU Foundation’s concerns that the grant should only be supporting Hilltop, and not children’s gardening in general. The Archer Foundation disagreed.

In August, the IU Foundation sent the Archer Foundation a letter stating that the new purpose was not consistent with the nature of the will and requesting the $600,000 be returned.

The Archer Foundation denied the request in a response sent by their attorney.

At this point, Coffman said, the Archer Foundation has not misused any of the funds. However, the IU Foundation also requested, along with the lawsuit, that an injunction be issued to prevent the Archer Foundation from spending any of the money until the suit is settled.

“Protecting donor intent is our priority,” Coffman said. “It’s our responsibility to make sure that happens.”