I think a tax policy based on “reasonable” confiscation is not very sound or sustainable and probably worse policy than allowing churches to collect money tax free.
At the same time there are laws in the US at least about how charities must use their cash and if they’ve broken these laws it would be a very serious case for them.
Generally a “reasonable” discussion on HN would involve details of the case and further our understanding of the issue. But that really wasn’t on your mind was it... “My throwaway”?