Am I in understanding that the Christian Children's Fund violated their tax exemption by deeming the receipt of the fully and honestly given money as ethically questionable?
There is no law that says any organization has to take your money, for any reason or for no reason. Their loss.
Don't sweat it. Pray for them, if you're of the mind. Write them a nasty gram. And find a similar charity (World Vision comes to mind) that doesn't have the same hangup.