My mother started a chessed organization 25 years ago that ran entirely on volunteerwork. Not a penny went toward anything but clients needs. There was a LOT of money going through each year but it was still small scale. They ordered food and had it delivered to an alley or shul hours before it was packed to be delivered. Because there was no warehouse, it had to be bought based on schedule, not price.
In order to expand and provide peole with more food more consistently, a warehouse needed to be purchased and manned. Someone needed to be available to distribute the food. In order to serve more people, money needed to be invested into the organization.
Even though it is in a sense “my own” organization, if I found out that the amount going to administrative costs was beyond a certain percentage, or that things were being purchased/distributed irresponsibly, I would not continue there.
Though you need to spend money to make money, it doesn’t have to be fancy amenities for fancy people unless the profit justifies it.