The Trump Organization said in a statement carried by United States media that since "the charity has removed its affiliation, the event will no longer be taking place at our property and all amounts paid will be refunded".
In a statement to the Washington Post, the Trump Organization initially said the event was for a "worthwhile cause" - the Miami Allstars Foundation, a children's charity in South Florida.
The Shadow Cabaret, a local strip club, was set to host the "Shadow All-Star Tournament", at the Trump Organization's resort on Saturday, where dancers would serve as "caddy girls" for the players.
President Donald Trump's company has canceled a golf tournament with strippers serving as caddies that was to be held at Trump's golf resort near Miami. He only learned of the club's involvement when The Washington Post called for an interview, he said.
Emanuele Mancuso, the club's marketing director, told the paper the tournament "would benefit a basketball-themed charity called Miami All Stars".
"The event was originally booked with the understanding that it would be raising money to support a local charity benefiting underprivileged children", a Trump Organization spokeswoman told The Post in a statement.
Following the event, the dancers and the golfers "would return to another venue - the cabaret itself - for what (Mancuso) described as a "very tasteful" burlesque show, which could involve nudity", according to the Post.
The advertisement says the choice option is available to participants that enrol before 10 July, while "everybody that enrol after the 10th, are going to have an auction that night".
Trump continues to maintain ownership of his business empire as president, but handed off day-to-day operations to his sons.
Alamilla said his group is a nonprofit, though it is not registered as a charity in Florida - he said he missed a registration deadline. Alamilla described the president as "contrary to everything we believe", but chose to accept the money to help the almost 40 youths he said his charity works with in Miami.
In the past, presidents often put their assets in a blind trust to avoid conflicts of interest, but Trump did not go this route and has faced lawsuits linked to allegations of violating the emoluments clause of the Constitution in the process.