I wonder how much they knew about what they were getting into. Personally, I don't think running events at all are great fun raising mechanisms because the entry fees don't do much more than covering operating expenses, especially for marathons where you need a lot of streets closed for a long time and the trend seems to be that you need a lot of expensive frills to bring in big crowds. A shorter event has much less overhead and can attract more runners. For fundraising, though, it better encourage runners to go out and seek donations or it's still not going to raise much.
I wish them the best but, based on what I'm hearing from you and a couple of others, I think Eau Claire could very well be on the chopping block. They very well could find that it's not the fundraiser they were hoping for, they picked a time with too much competition and a distance with too much overhead, and their fundraising efforts could be put to better use in other ways.