The way this thread has gone, I hesitate to even contribute but there is a point to be made. The one who supplies the financing has the right to place restrictions on the funds. The one accepting the funds has to decide whether or not the terms are acceptable. Governments do this all the time, especially the federal government. A small municipal fire department got a grant to buy a new fire engine but the old engine had to be removed from service. It was still serviceable, fire equipment doesn't really get used that much in reality. There were lots of smaller fire districts that could use it or it could have gone into Mexico or retained as a backup. The new engine needs DEF to operate. But according to the grant it had to be destroyed.
In my opinion 260 had every right to place conditions on his donation and the department had every right to refuse that donation based on those conditions.