Perhaps, although I haven't seen that. But I also have to deal with the limits of what I can tolerate. That rule make it possible for me to give money. Without it, I wouldn't. I experienced what it was like without that protection, and it's beyond what I could put up with.
It's both possible that the rule both is required for you to give and forces charities into suboptimal strategies. It makes sense to protect your sanity, but not if your intent was to filter charities by need/administration.