That has already been happening for decades - and it isn't the "net benefit" most think it is - here is just one example - but there are dozens of similar articles that can be found:
https://www.udet.org/post/the-hidden-cost-of-generosity-how-...
You can steer where donations go with regulations. I don't see any downsides of warm coats to homeless shelters for example.
You can steer where donations go with regulations. I don't see any downsides of warm coats to homeless shelters for example.