Ayoub and religion department colleagues said negotiations between Temple and IIIT broke down in the fall after trustees and others pressed the school to reject the gift.
"There were allegations from outside groups that we shouldn't be taking the money from this organization," said department chair Rebecca T. Alpert, who was involved in talks with IIIT, an academic organization based in Herndon, Va., that was cofounded by a former Temple professor.
Temple president Ann Weaver Hart declined to be interviewed but issued a statement saying, "After much discussion and consideration, Temple decided to neither accept or reject this generous offer. The university indicated that no decision regarding this matter would be made until post-9/11 federal investigations of the IIIT are complete."
In mid-December, tired of waiting for an answer, IIIT withdrew its offer, said the group's attorney, Nancy Luque.
"They were dithering," she said.
IIIT was among 20 charities and nonprofits raided by the government in 2002 to gather evidence against Sami Al-Arian, a former professor suspected of funding Palestinian terrorists through a University of South Florida think tank. Al-Arian was aquitted of most charges but pleaded guilty to one count of conspiracy and received 57 months in prison.
Luque said no charges were brought against IIIT, assets were never frozen, and items taken in the search have been returned.
"There's no reason to believe there's an investigation of IIIT," she said.
A spokesman for the U.S. Attorney's Office in Eastern Virginia said he could neither confirm nor deny whether there was a continuing inquiry.
