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Founder's Day is February 7, the birthday of Ovid Butler.
Here is a scanned copy of a short booklet from 1882 that says:
"At a meeting of the Board of Directors of Butler University, on motion of A. I. Hobbs, it was unanimously ordered 'that the seventh day of February be observed as Founder's Day, and that the Faculty arrange for proper memorial services to be held at the University on that day.' "
There are usually events throughout the week Founder's Day falls on. These Founders Celebration events can be found on the Butler website or through the Butler Connection/Butler Today when time gets closer to Founder's Day.
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