OXFAM faces a donations slump and boycotts from Brits after it released a video apparently depicting JK Rowling as a red-eyed villain.
The red-faced charity was forced to say sorry and delete part of their Pride Month advert after a huge backlash.
And yesterday supporters vowed to withdraw their cash from the under-fire brand.
The charity sparked fury after a video showed a woman resembling the Harry Potter author as a demon, wearing a badge saying 'TERF' - "trans-exclusionary radical feminist" - and is a slur used to describe people who think people can't change sex.
Oxfam insisted there was no intention to portray it like anyone in particular - but quickly removed the section of the clip.
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Tory Peer Baroness Foster hit out last night: "Oxfam is a toxic charity after Rowling attack.
"Clearly lost its moral compass and no longer fit for purpose - with your money."
Former Olympic swimmer Sharron Davies said of the poverty charity: "I will no longer be supporting your organisation."
Tory MP Miram Cates added: "Trans rights activism has revealed itself to be an intolerant, aggressive and misogynistic movement that does not have popular support and so it is unclear why a charity would want to align itself with such a divisive campaign."
Author Hadley Freeman said there was an "extreme irony" for Oxfam to go after JK Rowling as she is "famously one of the most generous people in the world when it comes to giving to charity."
And she hit out at corporations like Oxfam for "woke washing" and pretending to care about social issues by posting flags on their social media sites.
It came after the charity insisted they should not use the word "mother" or "biological female" either in a recent language guide.
Maya Forstater, co-founder of 'Sex Matters' - accused Oxfam of creating a "hostile work environment."
She told Times Radio: "Oxfam have moved away from their mission - the video does seem to be about young people wearing brightly coloured clothes, waving slogans, compared to old people being miserable…. rather than tackling issues all over the world.
"Anyone who holds the view that sex is real and sex is important will fear for their job within Oxfam.”
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Downing Street stressed there were no plans for discussions with the charity about government funding, added: "Any individual advert is a matter for Oxfam.
"As the PM has said before, he believed a woman is an adult female."
