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When I went to see my Member of Parliament (the late John Maples) about Elan Vital's charitable status, back in 2001, I was quickly confronted by my utter naivety, not only on that subject, but on how government works. Its limitations more than anything.
What he wanted to know was what I wanted him (as my elected representative) to do about it. I didn't really know, other than to suggest he find out from the Charities Commission why this organisation was on the approved list, so to speak. He did that on my behalf over quite a long period & would've continued; it was me who finally told him not to bother anymore, thanked him for his effort, & marked him down for my vote at the next election.
Charity law in England is one of the foundations of the system, something I never appreciated before, & so is impossible to challenge without a revolution of some kind. The best that can be done is to weed out the worst abusers. The smart ones, like Prem Rawat, actually a complete dumbfuck, but with very smart & cynical advisors, can keep just inside the law.
The US system is based on the English Common law, with variations, but I'm sure the basic problem is the same.
Cynics abusing the system for their own advantage.
The price of freedom is eternal vigilance. 
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