Attorney General Bonta Issues Guidance on Donor-Funded Scholarships Supporting Protected Classes

OAKLAND – California Attorney General Bonta today joined a coalition of 10 states in releasing guidance on the rights and responsibilities of entities holding charitable scholarship funds for the benefit of members of protected classes such as race, religion, and gender. The coalition issued the guidance in response to the Trump administration’s continued and deliberate efforts to rollback equity-centered programs and support systems designed to uplift historically marginalized groups.

Recently, the Trump administration’s widespread attacks on diversity, equity, and inclusion programs, including its distorted interpretation of the 2023 U.S. Supreme Court decision in Students for Fair Admissions (“SFFA”), have put pressure on entities holding private scholarship funds to remove race, gender, or religion-based criteria designed to benefit members of protected classes. In the guidance, the coalition explains the inapplicability of SFFA to privately funded entities and scholarships and remind all entities holding charitable funds of their legal obligation to protect a donor’s intent regardless of the Trump administration’s threats.

“Our society thrives when opportunity is accessible to all – regardless of background, identity, or circumstance,” said Attorney General Bonta. “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 further explain that a donor’s gift is protected by the First Amendment, can only be changed in specific circumstances (often upon notice to the attorney general and after court approval), and should not be changed if there is another lawful way to accomplish the donor’s purpose. In California, through statutory and common law, the Attorney General has the duty to protect charitable assets for the public. The Attorney General encourages privately funded trusts and charitable entities to contact the California Department of Justice if they are facing these concerns, and to seek the advice of private counsel before making changes in response to Trump administration threats or intimidation. 

Attorney General Bonta joins the attorneys general of Connecticut, Delaware, Maryland, Minnesota, New York, Nevada, Oregon, Vermont, and Washington, in issuing this guidance.  

A copy of the guidance can be found here.