Fraud in the Low-Income Home Energy Assistance program illustrates the problem with governments being charitable with other people’s money.

The Low-Income Home Energy Assistance program provides $5 billion annually to the states, which distribute the funds to businesses, nonprofits, and homeowners. Unfortunately, the states do a poor job making sure the money isn't lost to fraud and abuse.

 

See here and here for the articles that detail what happened and the subsequent government investigation.