The reactions in the fundraising world and public sector were not kind. Schwartz goes into detail about the disbelief, disappointment and anger Susan G. Komen for the Cure faced and the relative lack of response from the organization. I urge you to go read the entire post here.
The moral of the story is that appearance and public perception matter. Fundraising isn't strictly about raising money. It's about soliciting funds to further your mission, and doing so in a logical, mission-driven way. All organizations are feeling the crunch during these times, and a corporate partnership is a great way to increase funding and spread your message. But not any and every corporate sponsorship makes sense. Because if donors see a contradiction in causes or partnerships that seem counterintuitive — which many people have alleged is the case with KFC and Susan G. Komen — it could wind up doing more harm to your reputation than good for your mission.