Avi K,
In addition, because of the distortion of true tzedaka people with connections prefer to throw money at the needy rather than helping them to stand on their own feet. There is a story about a Jew who knew an evyon but did not tell anybody about his plight because he wanted to be able to give him a mattana every Purim.
There is another story about a Jew who had a lot of money and knew a poor person but gave him nothing because he couldn’t get him a job, and Heaven forbid he stoop to give a lesser form of tzedaka then the best.
I can make up good stories too.