They work with any type of nonprofit, not only charities.
"We will reach out to the organization you select to ensure it is ready to accept donations from Amazon."
Furthermore, you aren't able to free form enter a charity. It's only from the list they've sourced (presumably from public records).
Yes they might be contacted, but what if they don't want (or simply can't for legal reasons) use Amazon as a gateway for their funds?
Now you've given users the impression that they are helping a certain charity when it never makes it there.
Theoretically, these same users might have made a small donation directly to that company if it wasn't for Smile.
I'd still recommend using Smile, overall I think it's great, but you have to admit there might have been a better way to go about it. How to do that better, I do not know.
[1] https://smile.amazon.com/gp/chpf/about/ref=smi_se_dshb_leli_...
This seems fair.
If I donate to my favorite YouTube personality and instead the money goes to PewDiePie's empire, I'm going to be upset.
The difference between donations and taxes is that I can choose who to fund and how much. If that choice is no longer mine, and I have a strong chance to fund entities I find morally repulsive, then why donate?