Two foundations supporting the University of Georgia announced Tuesday they will merge to form one group to raise money to bolster the university's academic mission.
The UGA Foundation and the Arch Foundation will form a new University of Georgia Foundation, with assets of about $700 million.
Discussions between the two started about a year ago and leaders from both groups said uniting was the logical step. A merger allows them to cut operating costs and eliminate confusion among donors and alumni, said Jack Head, chairman of the Arch Foundation, and Sam Holmes, chairman of the UGA Foundation.
The State Board of Regents directed the university to sever ties with the UGA Foundation in 2005 after the group failed to submit an agreement outlining its relationship with the university. The rift between the university and the foundation began after President Michael Adams declined to extend athletic director Vince Dooley's contract.
The Arch Foundation was then formed to raise money for the university. The UGA Foundation was allowed to continue to mange the portion of the university's endowment which they held, but was not able to actively solicit contributions.
Adams said he was grateful for the merger and the support both foundations provided.
"All have worked together with a single guiding principle -- that we are all stronger together than we are separately," he said in a statement.
Each group's board of trustees needs to approve the merger and a vote is expected in the next 40 days.
The new foundation chairman will be Bill Young, a former chairman of the UGA foundation. John Spalding, a former chairman of the Arch Foundation, will be vice chairman.
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