...can't be used for anything other than scholarships, then it isn't. But I don't think that's the case here, they're just calling the general find something else. Now, the plan may be to use it all for scholarships, but the truth is they don't have to. They just want a larger pool of "unrestricted" funds. I think that is misleading.

Also, how will this impact future capital project solicitations when you don't get annual credit?