Must A Private School Accept Students It Doesn't Want?

I found this by accident on this blog: Right on the Left Coast: Views From a Conservative Teacher

"A federal appeals court said Wednesday that it would reconsider a decision to strike down the Hawaiians-only admissions policy of a prestigious private school..."

Kamehameha Schools in Hawaii were "established in 1884 through the last will and testament of Princess Bernice Pauahi Bishop...for the education of Native Hawaiians and funded entirely by the income from our land holdings and investments." It's through these schools that the Hawaiian language, which had just about died out, has been resurrected and is now being learned again. Read more about the legal challenge here.

My interest in this is based more on my regard for Hawaiian culture than anything else. If they can't limit their Hawaiian-tailored education to Hawaiians, then what's the point?