California Attorney General Rob Bonta, along with attorneys general from nine other states, has issued new guidance for organizations that manage donor-funded scholarships benefiting members of protected classes. The guidance addresses concerns over the recent push by the Trump administration to challenge diversity, equity, and inclusion (DEI) programs, particularly those supporting historically marginalized groups.
The coalition’s statement responds to efforts by the Trump administration to pressure entities holding private scholarship funds to remove criteria based on race, gender, or religion. This follows what the coalition describes as a misinterpretation of the 2023 U.S. Supreme Court decision in Students for Fair Admissions (SFFA). According to the guidance, SFFA does not apply to privately funded entities and scholarships. The coalition also reminds all organizations holding charitable funds of their legal duty to honor donor intent despite federal threats.
Attorney General Bonta stated: “Our society thrives when opportunity is accessible to all – regardless of background, identity, or circumstance. Scholarship funds intended to advance diversity and inclusion must uphold that legal obligation, regardless of who’s in the White House. Today’s guidance reminds charitable trustees of their legal duty to honor donor intent, including when that intent is to promote DEI.”
The coalition emphasizes that a donor’s gift is protected under the First Amendment and may only be altered under specific conditions—typically after notifying the attorney general and receiving court approval—and should remain unchanged if there are lawful ways to fulfill the donor’s original purpose. In California, both statutory and common law give the Attorney General responsibility for safeguarding charitable assets for public benefit.
The Attorney General encourages any privately funded trusts or charitable organizations facing these issues to contact the California Department of Justice and seek advice from private counsel before making changes in response to federal directives.
Bonta joins attorneys general from Connecticut, Delaware, Maryland, Minnesota, New York, Nevada, Oregon, Vermont, and Washington in releasing this joint guidance.
A copy of the full guidance is available online.
