This may help: Public Charity vs. Private Foundation [1] Generally, I think charities are understood to use most of their funds to directly support the people

This may help: Public Charity vs. Private Foundation [1] Generally, I think charities are understood to use most of their funds to directly support the people in need rather than spending money on administration of the charity. By the way, non-profits are not viewed as inherently good by those within the sector, > Charity non-profits face many of the same challenges of corporate governance which face large, publicly traded corporations. Fundamentally, the challenges arise from the "agency problem" - the fact that the management which controls the charity is necessarily different from the people who the charity is designed to benefit [2] [1] https://www.501c3.org/public-charity-vs-private-foundation/ https://www.501c3.org/public-charity-vs-private-foundation/ [2] https://en.wikipedia.org/wiki/United_States_non-profit_laws#Organization https://en.wikipedia.org/wiki/United_States_non-profit_laws#...