Also, I'd imagine Apple would've been slammed for rejecting an app which claims to be donating proceeds to charity so it'd be less controversial to let it through.
"You cannot say anywhere in the application description, support materials, or the application itself that some or all of the proceeds will go to any given charity" http://arstechnica.com/apple/news/2009/01/app-store-lessons-...
"Published 2 years ago"
And I think in all fairness, one should add that from that article it looks like this comes down to certain accounting requirements and regulations that Apple was not able to meet (at least back then) - not from them not wanting anyone to give to charity.
You have a front-row seat to that now, the app has been pulled.
I'm sure they'll use the 'donating proceeds to charity' as the reason why they pulled it.