I think the point is that people give to charities as a proxy for "helping people." Massive research oriented charities probably won't be displaced by something

I think the point is that people give to charities as a proxy for "helping people." Massive research oriented charities probably won't be displaced by something like GoFundMe, but the idea is that average people can directly fund the needy on a case by case basis (i.e. instead of paying for the administrative fees of a charity that helps sponsor scholarships, you can directly fund the recipient?)