This is literally the only thing I'm advocating for. I'm a trans woman that openly speaks about my and others' experiences. Trust me when I say, codified systems for reporting abuse are themselves the target of the same abuse. I've gotten the "Sorry, we're leaving this up" from reporting anti trans content on Facebook. I've had comments saying sex != gender reported/removed so many times, a Reddit account I used straight up isn't allowed to comment anywhere anymore. All the YouTube shit you hear conservatives whine about straight up just scans the autogenerated transcript for any mention of political phrases like "LGBT" or sexually explicit language like might come up in discussing my transition. All these reasons are why I'm fine with Kiwi Farms coming down but I don't think Cloudflare should change their stance on avoiding it in almost all situations.
The donation thing is that Cloudflare refuses to profit off of this and is therefore incentivized to avoid such customers. Companies are always going to pick the path of greatest profit so engraining morality in that path is better than not doing it.