DY – Both Rabbi Perr of Yeshiva Derech Ayson in Far Rockaway and Rabbi Mandel of YOB have declined to accept (seven figure) donations from those who they believe their money isn’t Tahor.
In the case of Rabbi Mandel, there was a famous singer (Barbara Streisand) who once went there and wanted to donate. In the other, P. Diddy (the rapper) was defended successfully by the Menahel’s Brother, Ben Brafman.
There are those who will accept money from anyone. There are those who believe that Torah launders money from its source.
Others believe that the source of the money affects the learning.
THAT all being said, I agree with you that Yichusdik is wrong in this instance. The institutions in Lakewood don’t believe that Rechnitz (and others like him) are wrong, doing something assur, etc. Rather, as others have pointed out, they discriminate simply for a need to be seen as elite, so they get the best applicants and are viewed as the “top” schools. V’Harayah, if they were in an out of town community, they would be thrilled to accept any of the children they currently reject.
L’shitascha, where would you draw the line? Would you accept a donation from an OO person? Mark Zuckerberg? Yair Lapid? JTS? Campus Pride? The Pope? At what point do you say “enough”?