Attorney General Ellison issues guidance on donor-funded scholarships for protected classes
Co-leads coalition of 10 states in emphasizing longstanding legal obligations for institutions to honor a donor’s intent, Trump administration’s attacks on diversity, equity, and inclusion notwithstanding
AG Ellison: Entities holding donor-funded scholarships for protected classes like race, religion, and gender ‘should not comply with Trump’s threats in advance’
August 20, 2025 (SAINT PAUL) — Minnesota Attorney General Keith Ellison today 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,” Attorney General Ellison said. “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.”
“I want all Minnesota foundations and charities to know that my Office is available as a resource for them in navigating these challenges,” Attorney General Ellison continued. “As they consult with my Office and private counsel, I also want to stress that above all, they should not comply with Trump’s threats in advance. The health of our civil society depends on all of us standing up against authoritarian bullies and standing up for the law and our freedoms.”
Attorney General Ellison and the coalition further explain in the guidance 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. Attorney General Ellison encourages privately funded trusts and charitable entities to contact the Charities Division of the Minnesota Attorney General’s Office at (651) 296-3353 or (800) 657-3787 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.
The full guidance from the Minnesota Attorney General’s Office regarding donor-funded scholarships for protected classes is on Attorney General Ellison’s website. Attorney General Ellison’s Office has also issued guidance about the legality of diversity, equity, and inclusion in business and in schools.
Joining Attorney General Ellison in issuing the guidance, which he co-led with New York Attorney General Letitia James, are the attorneys general of California, Connecticut, Delaware, Maryland, Nevada, Oregon, Vermont, and Washington.