S.C. State sued by its own foundation in bitter dispute over control of donor dollars
A bitter dispute between South Carolina State University and its charitable foundation has resulted in a “complete breakdown” of their relationship that threatens to diminish donor trust and depress alumni giving at a precarious time for the 130-year-old historically Black Orangeburg institution.
The long-simmering feud, which revolves around control of the foundation’s finances, recently escalated into an exchange of legal threats and accusations of financial impropriety after the university unilaterally terminated its 55-year relationship with the charity.
The South Carolina State University Foundation, formerly known as the Educational Foundation, is an independent 501(c)3 organization that has historically worked with S.C. State’s Department of Institutional Advancement to receive, manage and distribute funds the school raises in accordance with donors’ intentions and the university’s priorities.
The nonprofit, which manages all but a small fraction of the HBCU’s $17 million endowment, has been at odds with the university since early 2023, when it rebuffed a request to provide S.C. State President Alexander Conyers a $75,000 salary supplement.
While it eventually agreed to pay Conyers the requested money, the foundation alleges that he and S.C. State board chair Douglas Gantt have subsequently sought to exert undue control over the nonprofit’s finances and pressured foundation officials to make legally and ethically dubious use of donor funds.
The university, in turn, has accused the foundation of a “persistent lack of support” for S.C. State’s priorities and said its actions had undermined the university, its mission and the community it serves.
In a cease and desist letter sent to the foundation last month, S.C. State alleged the foundation’s lack of cooperation and transparency had created a “significant barrier” to the university’s institutional governance obligations, operational needs and accreditation responsibilities.
The April 23 letter, which demands that the foundation stop using S.C. State’s name, seal and logo, and halt its solicitation of donations for the university, blames the nonprofit for precipitating a “complete breakdown in the relationship” between the parties.
The foundation countered this week by filing suit against Conyers and Gantt individually for allegedly violating the organization’s constitutional rights and against the university for breach of contract.
“This lawsuit arises from a retaliatory campaign by South Carolina State University President Alexander Conyers to turn an independent charitable foundation into a compliant source of cash for his own priorities — a campaign that began when the Foundation refused to blindly supplement his own salary,” alleges the filing, which had been in the works prior to the foundation’s receipt of the cease and desist letter. “From that point forward, what should have been a cooperative relationship between a public university and an independent charitable foundation became a sustained effort by the President, aided by the Chairman of the University’s Board of Trustees, to seize control of the Foundation’s assets, donor relationships, governance, and voice.”
The lawsuit, filed Monday in Orangeburg County Circuit Court, asks a judge to declare invalid S.C. State’s termination of its memorandum of understanding with the foundation and to enter an injunction prohibiting the university from interfering with the foundation’s fundraising and charitable operations.
It further requests the immediate return of all donor records and the repayment of all improperly retained or diverted foundation funds, as well as compensatory damages and attorneys fees.
S.C. State University did not immediately respond to a request for comment on the lawsuit.
University spokesman Sam Watson said in a statement last month that the school’s recent actions, including the board’s decision to terminate its MOU with the foundation, were part of an ongoing effort to ensure continued alignment in the roles, responsibilities and operational practices necessary to meet accreditation standards.
He said the university remained focused on maintaining the confidence of donors and stakeholders and did not anticipate any disruption to its fundraising efforts.
The suit’s filing caps a tumultuous week for the HBCU, which was roiled by student protests over its decision to invite Republican Lt. Gov. Pamela Evette to deliver the university’s commencement address.
Conyers ultimately rescinded the university’s invitation to Evette, a staunch critic of diversity, equity and inclusion initiatives, in a move that elicited swift blowback from Republican state lawmakers.
Nine House members signed a letter denouncing the lieutenant governor’s cancellation and called on the state to defund the public HBCU, while Evette, who is running for governor, seized on the situation to call for an end to liberal “indoctrination” and DEI on college campuses.
The commencement firestorm, which came on the heels of two deadly shootings that shook the S.C. State campus earlier this school year, overshadowed a decision by university trustees last week to remove five non-voting members, including the S.C. State Foundation chairman, from its board.
The controversial move, which trustees said was intended to align the board with state law, passed by a 9-3 vote.
Newly elected trustee Donald Beatty, who recently resigned from the foundation board to assume his seat on the university board, cast one of the three dissenting votes.
Beatty, the former chief justice of the S.C. Supreme Court and uncle to foundation chairman Stephen Beatty, had been forced to get a temporary restraining order three days prior in order to take his seat on the university board.
This is a developing story and will be updated.
This story was originally published May 5, 2026 at 9:37 AM.