I did hear a story that the Menhel of Yeshiva of Brooklyn refused to take a donation from Barbara Streisand who graduated from there, so some do refuse the money if they dont like the source
I’ve heard the same story. There are still several differences between that and what’s being discussed.
She is a public figure, known for performances which are not according to Torah standards of tznius, and that’s how she obtained her wealth. She also, according to the way I heard the story, had attended the school, yet was and is very far from epitomizing their ideals.
I believe he generally did accept donations from non frum people.