The court heard the leaflets showed an image of a wooden mannequin hanging from a noose and quoted Islamic texts.
The leaflets said capital punishment was the only way to rid society of homosexuality.
They were handed out near the Jaima Mosque on Rosehill Street, Derby, and put through the letterboxes of people's homes in surrounding streets.
The court heard the leaflets were made and used as part of a campaign to publicise a protest in response to the Gay Pride festival held on 10 July 2010 in Derby.
The leaflet called for gay people to be given the death penalty
The men admitted distributing the leaflet but said they were simply following and quoting what their religion taught them about homosexuality and did not intend to threaten anyone.
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