You can be gay in the Church's eyes but you cannot ACT on it. It isn't about whether her money cashes or not, it is about RULES set out by the Diocese and the school and because it is PRIVATELY funded you really have no argument. The school and Diocese do not see it as proper and do not have to allow it. It is not hypocritical because by entering the school she is not committing a gay act or anything related. By taking another woman to the dance, she is crossing a line the Diocese, Church and school most likely set out.