The thing is that this project was controversial as f*ck. The devs never got permission from ZUN to do this and it went completely against his guidelines. But, even though they asked ZUN, they went on to do the project BEFORE even receiving a reply from the man. Touhou.txt and BadAyaFanArt were tweeting about this whole thing on Twitter yesterday. Some really controversial and shady sh*t. I knew I couldn't trust the IndieGoGo one bit when I saw it.
If this were a project that was not crowdfunded and distributed in a way that ZUN would be fine with (free download from their own website with indirect ads or con-based distribution), then we wouldn't have any problems. Unfortunately, the devs were real dicks about this on Facebook and Twitter. Being real vague on what permission and approval they got, whether they were aware of ZUN's guidelines or not. Heck, one of the devs was quoted saying "The guidelines only work effectively in Japan. They are not realistic anywhere else." while claiming to "have read ZUN's guidelines every month since 2009." That dude sickens me. Guidelines not applicable outside of Japan? Is this man not aware of the law? Regardless of which country you live in, copyright still upholds. And ZUN holds copyright over Touhou. Make something with Touhou in a way that ZUN doesn't like? He'll take you to court, simple as that. Why do people not understand this?
Touhou.txt's screenshot of the controversial tweets and Facebook posts