Can they use the endowment fund to pay the award? I’d be annoyed if I left them money and they used it for this purpose.
It depends on any restrictions or conditions attached by the donor at the time of the bequest or gift. I read an article somewhere (and damn, need to find it!) that there is a trend in larger bequests or gifts of more restrictive conditions being attached.
It’s also possible that the college’s insurance might be asked to pay, but again, going on memory, I thought I read the insurance company said the claim was not covered. Now I gots to look!