This may help: Public Charity vs. Private Foundation [1]<p>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.<p>By the way, non-profits are not viewed as inherently good by those within the sector,<p>&gt; Charity non-profits face many of the same challenges of corporate governance which face large, publicly traded corporations.  Fundamentally, the challenges arise from the &quot;agency problem&quot; - the fact that the management which controls the charity is necessarily different from the people who the charity is designed to benefit [2]<p>[1] <a href="https:&#x2F;&#x2F;www.501c3.org&#x2F;public-charity-vs-private-foundation&#x2F;" rel="nofollow">https:&#x2F;&#x2F;www.501c3.org&#x2F;public-charity-vs-private-foundation&#x2F;</a><p>[2] <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;United_States_non-profit_laws#Organization" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;United_States_non-profit_laws#...</a>