The consequences of that action will be as follows: Most of these businesses AND charities will drown in the moral outrage and close their doors. And that will have a detrimental impact on society, because the good that those businesses/charities did will go with the bad.
Facebook has one powerful good use case. It makes it trivially easy to connect with relatives and friends far away from us. There are other platforms out there, but until Facebook, there wasn't much, and even now, Facebook is the simplest and most convenient of them all. If Facebook dies, this good use case goes with it.
That's a bit too cynical even for me. There do still exist businesses that simply produce a product or perform a service, selling it honestly without any tricks or subterfuge.
Try this thought experiment: The local mafia needs to eat, sleep, buy cars, equipment. Should local restaurants, grocery stores, rental complexes, dealerships, the local Home Depot, accept their patronage? Is that dirty money or clean money? Is Home Depot morally corrupt for selling lumber to the mafia boss for his new deck?
The answer to these and more is: no. Moral policing never works. We have laws and law enforcement to pursue criminals. It's their job, not Home Depot's.
Literally the first ad that Facebook shows on my "newsfeed" is by "Jellop", but when I search for Jellop in their ad library, I get no results. In fact, I can't seem to get any results at all, regardless of what I search for, or what I select as the country.
Perhaps I'm being cynical, but my impression is that FB is aiming to provide just enough information that people will say "they're doing that already", and not enough that people can really understand what's going on. But I might be wrong.
The Ad Library claims to show all active ads, not just political/social ones. That's presumably true, but hard to verify or make use of. The "Jellop" ad that I couldn't find was missing precisely because the page name was something else they'd created for that ad.