My experience with Team Challenge echoes what Liz wrote above. I'm sure there are people with different goals who loved it; however, I found the focus on the vacation element of TC and the inflexibility of some of their rules to not be aligned with what I was trying to accomplish. I tried working through our local chapter about my concerns and got nowhere; I wrote the CCFA President in NY and never heard back (which I now realize was a misguided way for me to approach the problem). So, I bet Liz's advice about who to contact is a good way to go.
I ended up doing independent fundraising - not through TC - and did a half marathon on my own. I sent the money directly to CCFA as a group donation so none of it was used to defray extraneous costs associated with TC.
Your daughter deserves to be honored and the support group deserves to get the satisfaction of contributing with or without TC. Perhaps you could think of a way that her bravery could be acknowledged on a more local level (on a float at a spring parade, at a sporting event, feature article in the paper, etc.) and, if you wanted to, you could also highlight your CCFA fundraising in the process. You could honor your daughter, increase awareness, and do fundraising all at the same time. Some of the high schools in our county require community service and/or senior projects, so maybe you could find a student who wants to champion this cause?
No matter what, I think CCFA needs to be clearly informed of the consequences of their decision and the disregard they showed you. I am furious just reading about it.
Give your daughter a hug from her supporters here on this site!