Not so much the problem.

The bigger issue is a ton of foundations are just bribery enabling organizations. There's a reason pretty much every politician and rich person has one.

Donate $10k and the foundation can pay for a lavish speaking engagement in the Bahamas. The foundation head can give a 10 minute $50000 talk about how poverty is bad and then they enjoy the open bar and conversations with rich and powerful people.

Let's be frank, the average citizen isn't giving a dime to the George Clooney foundation for justice [1]. So you have to ask, why does such a foundation exist?

[1] https://cfj.org/