alt Hacker NewsEven assuming good intent, that was extremely silly from them to donate their money away when they don't have anything to begin with. This either assumes that the community is wiser at doing their work (doesn't sound to be the case), or that they were betting that it'll work out one way or another (most likely through another donation) – not realizing that such a donation is exactly what guarantees their organization's future.
They ARE "the community" that should be turning that money into actually useful things. Non-profits should not donate money. They should spend it or allocate it as grants.
I think that a charity that just funnels money to other charities is very suspicious and needs to be really on top of its stuff to not just seem like an enterprise for skimming money off other people's goodwill.