Sure they are different but they still require money. The only essential difference being that charities don't pay to keep things running in the country and businesses do. If you don't think charities compete for money, I have news for you. If you don't think charities have administration structures and all moneys go towards doing whatever they do, I have news for you.
Charities will grow, there will be more charities competing for money. Besides that, who are going to staff all these charities? The usual volunteers? What are they going to live on? Do we need to turn volunteers into donatees or do we pay them?
Of course charities need administrative structures. That's common sence. As for making wealth, neither charity nor governemtn do that. That's always been the role of business. And no one here is talking about replacing businesses.
What we're talking about here is deciding who will help the poor, bovernment or charities? As for wealth creation, it's clear that that role remains in the hads of business either way.
Now what you might not know is that some charities have paid staff already, so what would be the fundamental change there? Charities compete for money already, so again no difference there.
As for what the charity does with the money, here's the fundamental difference:
If I'm involved in a charity already, then I can see with my own eyes how the money is used. If I'm a member myself, I can vote to choose the leadership of the organization. As amember, I can see the accounting books as I wish. Do I have that much control over how my money is used when the government takes it?
No!
In this respect, it would be much more democratic.
To take an example:
If we had this kind of system, you could choose to give your money to a charity you trust. you could even join the charity. if they refuse you membership, you take your money elsewhere. As a member, you get to vote for the leadership and could insists on regular monthly meetings for the local community to exchange ideas. You yourself could be voted into the leadership of the organization. As a member, you'd have a right to see the accounts on a regular basis, let's say once a month, or whatever. With such close grassroots scrutiny of the finances of the organization, corruption is difficult.
Have you ever been involved in any kind of charity? I have, and can say that at least some of them are quite grassroots. Since you would get to choose your charity, you could choose the one you know.
This way, corruption is difficult, unlike in government.