In 2006, Michigan voters passed Proposal 2, which banned, among other things, preferential treatment based on race or ethnicity in college admissions. In addition, universities could no longer accept donations for race- or gender-specific programs.

The following fall, one of the least diverse freshman classes in recent history enrolled on the Ann Arbor campus.

For these reasons, the Alumni Association established the LEAD Scholars program for those who embody leadership, excellence, achievement, and diversity. The scholarship is available to accepted students to help the best and brightest make their way to Michigan. The Alumni Association — independent from the University — takes full financial and administrative responsibility for this program.