Fundraising - are some methods "immoral"???

Here's an interesting one.
A member of a breed club sells certain products which are dog related and requests an advert in the club magazine. It is made very public that some of the profits would go to the rescue side of that breed club and initially it is thought by both sides that the advert would be free. An advert would hopefully increase sales, and therefore produce a higher donation for rescue. In addition, the member would give a number of items free for the club to sell to raise additional funds.
However, the member is told that the Committee have ruled that an advert will be charged at TEN times the normal rate (for puppies, stud dogs etc) because it is "commercial" therefore rather immoral and the member will be "making a fortune" so they can damn well pay a commercial rate!! However,this will reduce the potential donation considerably.
Even an editorial written by someone not connected with the enterprise has been rejected as "sounding too much like an advert" durr! Surely the logic is, more publicity, more items sold, bigger donation....
The ISPCA and many other national rescue organisations are pretty commercially minded and some have catalogues of items to sell, very good many of them are too but I can't imagine for a second that the suppliers of the goods are all doing it for nothing! I can see this person taking the deal elsewhere then the breed club will lose out. Is it "immoral" to fundraise where someone raising the funds may also make a bit? How far would "commercialism" be acceptable if it meant better donations?

I don't think the advert should be free as the seller will be making some money on it but by the same process it shouldn't be a commercial ad either.
Was anything put in writing? Always have it in writing!
Becky