I don't know what that is but I was thinking white nationalism before I even saw what you wrote under it. I did some quick Googling and didn't find a match but apparently those groups change up their symbolism frequently as people catch on to what they mean. I wouldn't mess with that- I would just cut the patch off, trash it, and give the jacket back to Goodwill.
How did this automatically get associated with racism/nationalism?
Google "red background white cross" and one of the first things to pop up is the Nights Templar
Edit: OK, I just googled KKK Cross and it is similar, but the KKK Cross has a distinctive red mark inside a black box in the middle, its definitely not that. List it as "Knights Templar" (or something) and you're fine.