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At least The Human Fund didn't actually have George stealing from anyone, it was just him being a jerk. When Mr. Kruger gave him that big check he at least somewhat came clean it was fake. The president taking tax money for his League of Villians is just outright theft like if George would have cashed the check and called the accountant a liar.
He was in the process of his considerations when Kruger calls him into the office to inform him that accounting noticed that the human fund doesn't exist. George just didn't have enough time before getting caught to adequately convince himself to cash it.
Lol, you are correct, I just rewatched it. He was debating with Jerry at the dinner about turning it into a "real charity" which quickly devolved into people showering him with praise in order show worthiness of his "generosity" (jeez, this is sounding like how I imagine the Board of Peace will operate...). When Kruger calls him in, he still chickens out and gives the money back unprompted and plays the victim of religious persecution for his father's celebrating of Festivus instead of Christmas.
I don't know if George would have went through with it, because his cowardice, paranoia, and desire to not actually do anything likely would have won out, so I still think he's less evil as he at least somewhat confesses to being a fraud and he returns the money without a fuss, which doesn't seem like the behavior of a FIFA Peace Prize winner.