AG Ellison co-led 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. Attorney General Ellison and the coalition he led with New York Attorney General Letitia James issued the guidance in response to the Trump administration’s upheaval in the enforcement of civil-rights law. Recently, the Trump administration’s widespread attacks on diversity, equity, and inclusion programs, including its inaccurate characterizations of the 2023 U.S. Supreme Court decision in Students for Fair Admissions (“SFFA”), have put pressure on entities holding private scholarship funds to lift restrictions on funds donated for the benefit of members of protected classes. In the guidance, Attorney General Ellison and the coalition explain the limitations 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.

“We attorneys general have special powers and responsibilities under the law to ensure charitable gifts are used properly. If a donor has made it clear that the intent of their gift is to benefit people of a certain race, religion, gender, or other protected class, the entity holding that gift in trust for the public can’t decide to undo that intent out of fear of what the current administration might do. Just as my fellow attorneys general and I have repeatedly made it clear that diversity, equity, and inclusion efforts are broadly legal and constitutional, so we are making clear that donor-funded scholarships for people of protected classes are legal and that entities that hold them have an obligation under the law to honor and protect a donor’s intent, regardless of the Trump administration’s threats. They need to fight to protect the legacy entrusted to them by their donors who sought to chip away at systemic inequities, one scholarship at a time.” – AG Ellison