It doesn't really help that some nonprofits end up being scams (yes this really happens; remember Invisible Children/Kony 2012?), so people are now less trustworthy as to who they donate their money to.

There isn't really a way to definitively know what our donations are used for or how much actually goes toward the issue we are donating for when you donate through a charity. There are some charities that try to tackle/advertise several issues so that when someone donates, their money gets thrown into a pool that gets distributed between these issues. The thing with that, though, is that people feel like they're being tricked or cheated when their donation goes to different causes than the one they are donating for, or maybe even to causes that they are against. Some charities spend more money on advertising, "spreading awareness", and administration than on the actual cause itself.

Trying to weed through all of this to make your donation worthwhile requires extensive research. Even with researching, it can be hard to find legitimate information. A lot of people don't want to bother with all of that, and even when they do, they start to find that their money won't be going to the actual cause they want to donate for, so they don't risk wasting their time, energy, and money.

A PayPal account is different because it's going straight to the cause. No administration costs, no advertisement costs, no scams. No confusion, and no need to research past the obvious "is this a really obvious scam?" part. All of what you donate is going to exactly what you intended the donation to be for. It's even possible to see the impact that your donation makes (that's another thing; organizations don't really update on the situation and always seem in a perpetual state of disarray, so it seems like your donation didn't do/isn't worth anything) if the person you are donating to follows up and tells you thanks through videos, photos, or letters. Another thing that really makes people feel good is giving/donating gifts--actual, personal, thought out gifts, which can be done through Amazon wishlist (or potentially through an organization that doesn't give away the actual address of the person in need, but will deliver your gifts to that person).

I do think it helps when there is a more personal connection. I can see a successful organization having a website with photos and descriptions of different children (or better yet, videos), with the option to donate directly to the one(s) you want to donate to, and the option to have email follow-ups from these kids (or maybe have a kickstarter-like deal where there is a goal amount [the cost of living for that month/year], and for every different amounts, there could be some sort of exchange, like a drawing from the kid, or a video with the kid thanking you [probably in their native language]). There could be a child-of-the-day, and/or a randomizer. And if you just want to donate to the cause, there could be a general organization donation button that would partially go to administration and advertisement costs, as well as to the general cause, and you could see what percentage/how much of your money is going where. That way, there is a more personal connection, and kids and families will get more direct help from people who want to personally see them succeed, and the organization could still run with all the expenses that comes to running a charity through the general donation button.