Charities are like businesses too. The difference is they dont
have to pay tax haha...
Donations are viewed as income, helping the needy are viewed as
an expense. In the end, look at the financial statements to see if
its a profit or loss. 
It is better to donate to a charity fund that is run by rich,
capable and honest people who are compassionate for the needy. In
the first place they are already rich and dont need to take money
from the charity. People who set up charities or join charities for
the purpose of profiting from it should be viewed with caution.
The reason why Warren Buffett donated the bulk of his money to
Bill Gates' foundation is explained above. 