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What's wrong with hosting warez exactly? Or the COVID emergency library? Do you think they're actually bad things to do, or are you just worried about the legal risk? If the latter, you should keep donating until you find someone who's doing the same thing with less risk.

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They’re legally indefensible and are an existential threat to the entire organization.

The reason many of us donate is for the internet archiving part of the business. When an organization starts taking donations and doing other things with them, including things that actively threaten the existence of the thing you were trying to support, it’s reasonable to stop donating.

Will stopping donating result in more or less archiving?

More, if it causes the organization to change course and avoid being sued into oblivion.

When a donation-dependent organization starts losing people over its mission, the board takes notice and adjusts course. Unless they're so far gone that they don't care about taking down the organization to pursue activist side quests, in which case donations don't matter.

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