It wasn't unreasonable to pay the organizers, especially the guy who was doing the heavy lifting. He deserved a salary and other compensation and perhaps the others as well. But, they told the donors that they were not doing this. They lied. When Bannon decided to pay Kolfage, the organization should have disclosed that to all of the donors, amended their by laws and offered refunds for any who didn't want to agree to the change.
Probably, few would have asked for their money back and then the organization could be operating legally. It sucks when you decide to defraud.
350K is small potatoes compared to the money La Pierre and the Clintons milk from their non-profits.
Seems dubious that the go-fund-me promise to not take expenses would apply once they organizers closed it down and turned it into a non-profit.