A lawsuit brought by the Pacific Legal Foundation and an anti–affirmative-action group used the Ku Klux Klan Act of 1871 to challenge a race-restricted Black Alumni Scholarship at UC San Diego. The legal action led the university to rename the scholarship after the fund’s restructuring. Plaintiffs argued that race-restricted private scholarships violate federal statutes; university officials and alumni decried the move as undermining targeted alumni support for historically excluded graduates. The case illustrates a new legal strategy that campus leaders and donors must weigh when designing race-conscious philanthropic instruments.