It's not that bad at the moment, because it does not appear that the management of the charitable organizations using direct selling to individuals are benefitting from this method of raising funds.
Their logic is probably that the needy benefits from the incremental donations and they would be right on this count.
What they may not have analysed in detail is whether the individual donors are fully aware of how much their donations are being paid out as commissions and whether this method is acceptable to donors and the general public.
Another factor is whether the targetted donor segment is appropriate, given the method of selling which includes commission to agents. It wouldn't be a big issue if they targetted large profit making enterprises or rich people.