I know that they've been put in a tough spot financially, and it would be sad to see FA disappear. (Though I barely visit the forums anymore... too many trolls.)
When I remember to, I do go through FA's affiliate link to buy stuff from Amazon. But I'm not sure I can really get behind a push to vote for them as "most worthy charity." Let's face it, they're in competition with animal shelters, school music and arts, libraries, and other charities that to my mind are a little more worthy of $25K.
I don't think the FA folks are selfish or immoral for applying for this grant, and I wish them luck. I hate it when people start listing hierarchies of need and saying "This cause is clearly less worthy than that one." It's not like donating money for animal shelters and donating money for starving children is mutually exclusive, or else we should all choose the one worthiest cause in the world and donate money only to that one until the problem goes away.
Still, I'm having a hard time seeing a fan fiction site as a charitable cause.
I might feel differently if they really were fulfilling their educational mission ... to help writers improve their writing skills. But it's not like they are running workshops or online classes. They haven't even updated their homepage in forever.
(Yeah, I know, that's because they've got no money. But with $25K, are we really going to see FA suddenly become a hotbed community for aspiring young writers?)
ETA: They got wanked by people thinking the same thing, but less charitably.
ETA 2: Now I am regretting saying anything. I didn't realize the whole damn Internet was going to explode with rage at Fiction Alley. C'mon, people. Someone at one of the wank threads said "This is the most disgusting thing I have ever seen in my forty-three years on the planet." Seriously? Seriously?