California Attorney General Rob Bonta has joined a coalition of ten states to issue guidance on the rights and responsibilities of organizations holding charitable scholarship funds intended for members of protected classes, including those based on race, religion, and gender. The move comes in response to actions by the Trump administration that have challenged diversity, equity, and inclusion (DEI) programs and pressured private scholarship funds to remove criteria benefiting historically marginalized groups.
The coalition’s guidance addresses concerns stemming from what it describes as the Trump administration’s “distorted interpretation” of the 2023 U.S. Supreme Court decision in Students for Fair Admissions (SFFA). According to the coalition, this interpretation has led some entities to consider removing DEI-focused criteria from their scholarships. The guidance clarifies that SFFA does not apply to privately funded entities or scholarships and emphasizes the legal obligation of these organizations to honor donor intent.
“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 also notes that a donor’s gift is protected under the First Amendment and can only be altered in specific circumstances—typically with notice to the attorney general and court approval—and should not be changed if there are lawful ways to fulfill the donor’s purpose. In California, both statutory and common law assign the Attorney General responsibility for protecting charitable assets for public benefit.
Attorney General Bonta encourages organizations managing privately funded trusts or charitable entities facing these issues to contact the California Department of Justice and seek private legal counsel before making any changes in response to federal pressure.
Attorneys general from Connecticut, Delaware, Maryland, Minnesota, New York, Nevada, Oregon, Vermont, and Washington joined Bonta in issuing this guidance.
A copy of the guidance is available online.
