I could be mistaken, but I’m pretty sure all donations go to The Mozilla Foundation. I believe the foundation is the decision-making power for the corporation.
Either way, yes, Mozilla sold their soul to Google (specifically, giving preference to Google Search) in exchange for sustainability (read: survival). Rather difficult to compete in a market where Google and Apple collectively hold upwards of 85% market share for something they provide “free.”
While I’m not sure dropping Firefox is necessary at this juncture, I’ve had a good experience using LibreFox. Hearing a lot about Zen, though.
Check out Mozilla’s clarification: https://www.ghacks.net/2025/02/27/mozillas-new-terms-of-use-causes-confusion-among-firefox-users/