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Modifying Donor-Restricted Endowments Offered By Educational And Other Not-for-Profit Institutions
The Iowa Supreme Court's landmark decision in In re Ezra L. Totton Scholarship addresses whether universities can modify race-based donor-restricted scholarships in response to changing legal landscapes following Students for Fair Admissions v. Harvard. The Court ruled that while institutions may seek modifications when restrictions become impracticable, any changes must remain faithful to the donor's original charitable intent rather than simply serving institutional compliance goals. This precedent-settin
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