I do not think that the concept of charity is bad, merely in many cases the reality. Furunculus gives examples of trade distortion disguised as charity.

Yes, using a WWF subscription to assuage one's conscience against all the bad in the world is a cop out that loads of people do, but donating to a hospice in my opinion isn't. The latter will make a significant local difference.

I also have a problem with vast amounts of my income going in the UK to such things as Social Services. It removes all link between myself and the beneficiaries. They feel no gratitude towards me as it is the State that gives them their alms, and I feel no compassion as I have been divorced from the process. Give more? What, was the last few hundred not enough this month?

Political activism is all very well and good, but most people only like things to improve abroad as long as there is no perceived cost to themselves. Else why not spend half our welfare and health budget elsewhere? It's save far more lives. People want to maintain their own delusion of being a caring citizen of the world but the vast majorities are NIMBYs. A few quid a month to a popular charity helps plaster over this disconnect.