The homosexuality in regards to the church issue is always one I think is difficult. Jesus, within the Bible, doesn't comment about it, but the Bible does condemn homosexuality. If the specific church wishes to ban religious events centered on homosexuals as they see it as at odds with the teachings of the Bible, they should be allowed to do so. However, cancelling it literally the day before is an inhuman response in the face of the family's grief. Who knows though, it could even be a business related decision. If the church regulars would stop attending due to the funeral, it's a difficult but practical decision, if not still a monstrous one.
Do you know what the Bible condemns A WHOLE LOT MORE than homosexuality?
Divorce.
Maybe this church should refuse to bury a divorced person.