Ask HN: Could charities function differently?

Recently I've been thinking about the current structure of most charities, and I've been wondering whether or not there might be new/better ways to help out the poor. After researching charities and thinking through the whole matter, I thought about a different approach. What if a charity took in donations, and used those donations to start businesses in impoverished areas. My thinking is that this economic boost could snowball into jobs and more businesses generated in the area, thus stimulating the local economy. I definitely haven't considered all of the politics of this idea, or whether or not it is even plausible. However.. I invite everyone to post their thoughts!