Hi gavra_at_work.
You are correct and I appreciate you prompting me to clarify this important issue, and to learn something that I previously did not know. Thank you.
From what I was told, if one gives tzedaka to someone or an organization and they turn out to not use the money properly, even if you dont know it, you do not get the mitzvah of giving tzedaka.
I was told the person does not go away totally empty handed because they acquire a merit for “wanting to do a mitzvah”, according to the gemara, but they are not getting the specific mitzvah of giving tzedaka.
If I still need to sharpen my understanding, please let me know in the event you come across this and have a moment to post.
: )
Kol tuv!