The argument I hear people make (about bigger organizations) sounds like so much rationalization to me: "Yeah, but even if just a small percentage goes to actual benefits, it's still a lot more than those needy people would have without the organization."

I find that a bit lame... you sell people on the idea that they are donating to-- let's say-- curing children's cancer, but for every $1 I donate, 73 cents goes to expenses. To someone's salary, and a shiny office building. Why not just be more honest and say you "have a business" and donate part of your profitst o charity?

Alas, that's not how the world works.