Can limits on charitable gifts be enforced?

The New York Times reports on a settlement between Princeton and the heirs of the Robertson family. The heirs had claimed that Princeton stopped following the requirements attached to a $35 million endowment made in 1961. The fund was intended to promote education for those going into government service, and had grown as large as $900 million.

In the settlement, Princeton agreed to pay the heir's legal fees of $40 million, interest of $11 million, and they returned $50 million to the heirs to set up a new foundation. The school keeps the balance ($500 million or more) to use as it pleases, free of the restrictions of the original gift.

Both sides claim victory here, but it seems to me Princeton is really ahead. The message to donors seems to be, stipulations attached to the usage of your charitable gifts will only be advisory. If you really want to control how your money is spent, don't give it away.