After clashing over how to use endowment money, the Medical College of Georgia has decided to sever its ties with the Medical College of Georgia Foundation Inc. and start a new foundation.

The college’s president, Daniel W. Rahn, notified the foundation’s chairman, William E. Mayher III, last week that the college would split with the foundation unless all board members resigned by the end of the month, according to the college.

The college is expanding, and college officials said the foundation’s priorities were not in line with the priorities of the institution, according to The Augusta Chronicle. Last year the college asked the foundation for $5-million from its $121-million endowment for a new building at the dentistry school. The foundation said no.

Most of the foundation’s endowment funds are restricted, James B. Osborne, the foundation’s president and chief executive, told the newspaper, and the $5-million would have used up most of the endowment’s unrestricted funds. The foundation uses that money for its rainy-day fund, and an expense that large would be “devastating” to it, Mr. Osborne said.

A new foundation could begin accepting donations in 90 days. —Kathryn Masterson