But the person who the money/etherium is sent to could be the charity, no? As in, people donate their digital art or whatever to a charity and the charity auctions off the NFTs to raise money.

That’s the way real life charity fundraisers sometimes work: you donate a physical object and they sell it to raise money. The benefit over you selling at and donating the money is that you don’t have to deal with selling it. The usage of NFTs here would be to take advantage of the mass hysteria(?) surrounding them to drum up the price.