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You are not permitted to use a gift with restrictions in any other manner than what the donor restrictions state. I believe there are criminal ramifications on using restricted gifts.

This is a good point.  I had assumed, perhaps incorrectly, that not a lot of money was involved and that neither the state attorney general nor the intended beneficiaries would think it worthwhile to sue.  But in Pennsylvania, at least, there is precedent for the criminal prosecution of a hospital executive who used funds held by the hospital in trust for educational and research purposes for general operating purposes in an attempt to avoid bankruptcy.   He was convicted of improperly using funds entrusted to the organization. –Don Kramer

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