The thing I'm trying to address is your claim that it's just fine and dandy for them to redirect all the money to charities because that's equivalent to what the original organizers were going to do anyway. It's not. It's so obviously not appropriate that GFM immediately realized they could never get away with that and changed their minds and decided to refund all of the money instead. So I don't know why you're even bothering to defend their original plan. You're probably literally the only person in the world who thinks it's fine.
edit: removed potentially inflammatory analysis.