Okay, so if this money comes with strings attached (e.g. Chi Alpha has to keep the gay fellow), turn their stinking money down.
I don't see the issue with the gay fellow. Chi Alpha should (in my opinion) have the right to choose and keep its members according to its own rules. The gay fellow knows the rules, and broke them. He's toast.
So if taking student-activity money comes with unwelcome strings, turn it down. At that point, if Chi Alpha is still hearing crap from the college, they can fight it on a purely moral basis, which is where the fight belongs.
Quite so!