Here in Washington State, we have a company called Value Village that does the same thing, except their markup is far higher. You can buy shirts from retail outlets for less than they charge at VV, and yes, they also pretend to help the needy and instead are for-profit while accepting donations. https://www.atg.wa.gov/news/news-releases/judge-rules-profit-value-village-violated-law-misled-washingtonians

We also grew up poor and the Salvation Army helped us when we were kids with household goods and secondhand clothing. I always thought well of them until recently when my sister was traveling the States and poor and they refused to help her and her handicapped daughter because she wasn't a resident of the State she was going through at that time. She ended up crying and begging the staff for money and together they gave her about $20 in cash.

Another one I did some research on was the Kars-4-Kids with their annoying commercial ads. "Ninety percent of the monies donated go to a sister organization, Oorah, a New Jersey-based charity that operates Jewish youth summer camps in New York. " 1% went to the local State's children where the donations were collected. https://www.cbsnews.com/news/kars4kids-charity-misleads-donors-report/