It’s just too easy.
With a relatively small investment I could start my own charity and begin fundraising today. There’s no product or service to deliver, I just have to convince people to give me money on the basis that the money will be (mostly) donated to a worthy cause.
And on top of that, I get to be tax free too! What’s not to like?
I can see why scammers and fraudsters are drawn to these schemes and I support a tightening of the rules to make it harder for them to take the money and run without repercussion.