The issue people have is less what Wikipedia does with the funds donated to them, then how they advertise. If you advert suggests you are about to go under, but in reality you are spending money left right and center on various other charities, with only vaguely related mission statements, then you are taking advantage of the god will of your donators, that is the problem here.

>All large organizations experience waste and spend some money poorly.

Sure and if their advertising was in any way honest about their financial situation people would mind much less.

Personally I would never donate to an organization which repeatedly claims to be at the brink of collapse, while managing very significant amount of funds and investing them into vanity projects. If I wanted to donate money, why wouldn't I donate to anything else?