People are hating on the fact that a non profit organization is donating a significant amount of money to OSS which does not even have to help them in any way ? Or does the fact that their products have bugs in them stop them from doing any good ?

As has been said already, it's about priorities:

Firefox is a software project--the good they should be doing is creating and maintaining and fixing a great software application and maintaining its as a standard in its field, not playing politics. They're an open source and free software project; they're already political and doing anything other than improving the code distracts from that political stance. If people in Mozilla or Firefox which so desperately to support their causes, they can start new projects for which to fund those causes, not rob the piggy banks of others!