I understand the motivation, but the story, like many on this theme, doesn't make one key connection. Story describes a karate event as a replacement for gift wrap and cookie dough, and story furhter describes how the PTO makes $5 a head for 61 participants. That's $300! I'm not saying it's a bad event, but it's a far, far cry from replacing gift wrap and cookie dough. You'd have to host 20 of those events to make up the dollars missing from one decent cookie dough sale.
Groups need to be careful that baby (field trips, teacher support, enrichment, playgrounds, involvement events) doesn't get washed out with the "these fundraisers are bad" bathwater.