In reply to GrumpySod: Interesting question
At an organisational level HfH is a charity for people (soldiers) so it's aim should be towards them. They might have based their decision on whether they thought their members would be happy with it, or they could have thought that the charity's image may be negatively effected and hence donations reduced.
At an ethical level I don't know, should oil companies fund climate change projects? Should tobacco companies be allowed to donate to kids charities?If there's no publicity/benefit for the donator and no negative effect for the charity I don't see a problem with it. Consequentially it's better in the charities pockets than those donating.
It probably depends on two things, 1) whether you think charities should act with human values, and 2) whether you think on a personal level you lose integrity by accepting something from someone you fundamentally disagree with.