At least some of the donations would have been made directly to charities had Paypal not advertized in their name. So charities who weren't informed, couldn't g

At least some of the donations would have been made directly to charities had Paypal not advertized in their name. So charities who weren't informed, couldn't get or didn't want a Paypal account were deprived of donations. They did the whole thing to get people to use Paypal but didn't want to put in the effort to run it properly. In effect they ended up defrauding charities. If you put up a sign that says "accepting donations for charity X" and then don't make every effort to donate the collected money to X, it's fraud. "Paypal accused of defrauding charities" would have been the appropriate title.