Unfortunately, that is the downfall of these big events. Locally, the MS society has a yearly 100 mile event, where abpout 90% of the money raised actually goes to the charity. My local Aids charity sponsors a walkathon, etc.
When you raise the $5,000 needed to ride in a Palotta event, something like $3,500 of it is being used to pay for the support wagons, tents, security, food, etc. Then, another big chunk goes toward the pocket of Dan Palotta, who has become a millionaire through sponsoring these events.
The major west-coast Aids charities have recently revoked their sponsorship of his events, and have instituted their own 'lifecycle' events. Ever the altruist, Mr. Palotta has sued them in court for doing so.
In short, I hope there is a specially nasty place in h3ll for people like Mr. Palotta, and I sincerely hope his empire crumbles very quickly, leaving him destitute. Perhaps then, he will understand what charity is supposed to be.