Seems like it's too easy to setup a "charity" with little to no oversight. Just my outside opinion with little knowledge of the process or follow up done. This kinda reminds me of the Goodwill reports that came out bashing them...
The whole charity tax exemption concept is just a big loophole, and I can’t imagine it was created unintentionally. Obviously there is not sufficient manpower for enforcement of the rules, not to mention it’s impossible to make the rules without so much room for plausible deniability that it wouldn’t make a difference anyway.
Ikea
This is so true. Even the guidrstar seals of transparency aren't that trustworthy. I filled one out for an nonprofit I volunteer with, and trust me, you can say the most random stuff to get your Platinum seal (their highest rating). They don't check at all.