It’s not even that malicious, bureaucracy takes over and more money is spent on the middle men than the recipients. In the US we already spend about $600B in charitable giving, yet most of the problems still remain.
Even if you fix the distributional challenge, the second order effects of how the modern economy is setup ensure that extreme poverty will always exist. If the poverty line is $10k and you give every single person $10k, the corporations and rent seekers will adjust the cost of living so that the new poverty line is now $20K and extreme poverty still exists.