There is no contract -- no binding agreement saying the donor will give CAH money, and CAH will give them nothing. But that just means contract law doesn't app

There is no contract -- no binding agreement saying the donor will give CAH money, and CAH will give them nothing. But that just means contract law doesn't apply -- it doesn't make it illegal. So long as there is no misrepresentation on the part of CAH they're in thoroughly legal waters. It's just a donation drive.