Purdue University has agreed to keep the word 'God' on a plaque honoring Dr. Michael McCracken, a major donor who's given the school $12,500 to the school.
Purdue had asked McCracken to provide wording for a plaque in his honor.
It read, "To all those who seek to better the world through the understanding of God's physical laws and innovation of practical solutions."
Purdue, fearing the dedication would be considered a state endorsement of religion, removed the word "God" from the plaque without notifying McCracken.
McCracken sued, claiming the school had violated the First Amendment.
On Wednesday, the school backed down, saying they would allow the original inscription plus the following phrase:
"Dr. Michael and Mrs. Cindy McCracken present this plaque in honor of Dr. William "Ed" and Glenda McCracken and all those similarly inspired to make the world a better place."
McCracken, pleased with the Purdue's decision, said he would continue donating to the university.
"I believe that there are certain situations in life where one must decide if they are going to stand for their principles, regardless of whether or not it is the easiest or most convenient option," Fox News quoted McCracken.
"That is why my wife and I felt it so important to resolve this issue instead of ignoring it," he explained. "Our Founding Fathers understood the importance of freedom of speech and religious freedoms, yet recognized their dependence on God."