AAQ- Although I do not know the inner workings of the big tzedka organizations, it would actually seem easier in today’s day and age to research to true needs of a family. I agree that the ideal would be to give to family that I know personably and can attest to their genuine need. However, I would guess that most donors are not in that position. This would be especially true if you live in a wealthy neighborhood and most of your circle of friends are of the same ilk.
It should not be too difficult in many (not all cases) for an organization to contact a reputable Rav who knows the personally the most destitute and needy cases. Unfortunately it seems to me that there is not a shortage of genuine cases of need for families who got a raw deal on life.
Gadol Hadorah: I agree that we are living in an age of unprecedented wealth. But it seems to me that even so there are plenty of causes that we are obligated to give to that are desperate for $. Not every mosad is flush with cash. Although there may be an inyan to buy a Tesla for a guy who had his repossessed, it would seem that this should be put on the lower list of priorities. True everyone has a right to give to whomever they prefer but it would nice if people with $ would also use seichel in where they give.