I think what the co-worker did handing out the flyers was actually a nice gesture. I don't think she intended to bring religion into the picture.. just to give families a chance to go to something free, entertaining and where people could spend a day/afternoon/evening not worrying that something truly inappropriate will happen. I used to go to a lot of fall festivals at local churches and not once did the preacher or whoever get up on the pulpit and start preaching. They're harmless, she was trying to be nice.
I think the co-worker who got upset is the one who is in the wrong. Again, its opinion. I know people mentioned that religion has no place in the work place, however, like I said.. I don't think inserting religion into people's lives was this lady's intention. If he didn't like it, the proper thing to do would have been to just throw the flyer away. If he is some type of authority figure in the business and wanted to express to her that its inappropriate, that's a discussion for private, not to embarass her in front of others for what she saw as a nice gesture. My personal reaction would have been to say "If you don't like it, don't go. I think its nice since things are so tight for people. Don't have to worry about anyone at a church function at least!" Not with a nasty tone, but just kind of a brushed off tone. Or at the very least, looking at him with a bewildered and somewhat disgusted look at his display.
He's truly the one who looked like an oaf in the situation.
Oh and as for the "Regardless of whether or not some individuals choose to consume alcohol, there is no religion associated with a golf outing." You can choose to make religion a factor or not at the festival. Like I said, they don't jump up and preach during the festival, no one takes communion etc. Many churches understand that some people are weary about religion. The only way you're inserting religion into the ordeal is that it is in a church and the church staff will be there, most likely just to volunteer and run the festival. I've found that up in the northern states (I am from Texas and grew up there) that people don't push religion quite as much as they do in the south. At the golf outing, you have no choice but to be around obnoxious drunks should they choose to drink.. unless of chourse you leave, after you've likely paid for the golf trip. At least if they don't like what's going on at the festival they walk out, no harm done.