As long as it is private funds, then there's not much I can say about it unless I want people judging me on what causes I donate to.
There are thousands of scholarships out there with vast amounts of different criteria as to how they are awarded. I'm sure just about everyone can find ones that they qualify for, as long as they work hard for it. And it can get very frustrating trying to find scholarships that you qualify for. I know, I've tried. But, if you are determined, you can find them, or get help finding them.
I get that white, American citizens don't have access to all the scholarships, and I'm not being racist here. There are tons for minorities. However, I'm betting this is the only one that the kids of illegal immigrants qualify for.
You don't have to like it. If you don't, then don't donate to it. Instead, get people who agree with you and start you're own scholarship fund with your own criteria. Just make sure you base it on your actual values and not on "slap in the face" retaliation.