It's not at all wild if the charity presents itself as non-discriminatory (ostensibly to deceive "outsiders" into misguided donations) while specifically benefiting the ethno-religious group of its administration.

It's clearly deceptive and exploitative.

It would depend on what the precise federal/state law regulating charities is - it sounds, to me, (I'm a Kiwi, but heard one of their ads on the radio today in an Uber in SF) like they need to be more specific about what charity they're raising money for - the after just said "for charity".

I'm sure you'd agree that if I was advertising in the name of kids to raise money for a charity, and it happened to be that the particular charity I was raising money for had determines it should give Hamas money to help those kids, that potential donors would prefer to know where exactly their money was going to.