"sanction the whole country to death because they don't agree with policies of people in power." 'Sanctioning to death' is perhaps not reasonable but, still, there should be standards for dealing with countries. Let us consider a different example. Without standards you end up with buying cheap goods made by children who work 12 hours a day on Saturday combined with driving your own child to violin lessons on Sunday. Not to mention that the children who work 12 hours a day are competing with properly paid adults in other countries.
To get back to LGBTQ rights, there also should be some standards. The standards should perhaps not be as high as western nations would like but they should exclude the worst places in the world. The story sounds like the PSF had at the time not yet decided what standards should be in place for subsidizing conferences. They should correct this omission because keeping a conference organization with this kind of uncertainty is not good.
To get back to LGBTQ rights, there also should be some standards. The standards should perhaps not be as high as western nations would like but they should exclude the worst places in the world. The story sounds like the PSF had at the time not yet decided what standards should be in place for subsidizing conferences. They should correct this omission because keeping a conference organization with this kind of uncertainty is not good.