Our organization (university affiliated foundation) has trouble raising unrestricted funds, it's a very small percentage of our overall fundraising (less than 3%). The annual unrestricted fund is marketed as supporting student scholarships and the greatest needs of the university. Some of the money is already used for emergency requests from students and faculty and staff grants. The rest is mostly used for the foundation's operating expenses (which includes administering nearly 1000 scholarships).
Our finance department has become concerned with how our annual fund team markets this fund (specifically that they say it helps support student scholarships) so that we will now be creating a new scholarship that will be funded by these unrestricted gifts. This is totally unnecessary right? It might not directly provide funds to students (though it already does on a small level) but it certainly "supports" scholarships by enabling us to pay people to do the work of administering them. It transparent on our website that these funds are unrestricted and can be used for whatever so this seems like an 'own goal' to me.