It is basically outsourcing, yes. I'd think on HN of all places people would appreciate how wrong that can go.
I recommend reading the Wikipedia page on Dian Fossey if you haven't.
Since philanthropy is usually fueled by emotions, you might be tempted to fuel actions to stop trophy hunting of endangered species, but according to many sources (see the wikipedia page and its references), that might actually be detrimental to the conservation efforts. Similarly, you might fund the planting of trees to restore forests, while those cutting existing forests down with no regard for the environment face no opposition (sound familiar?).
There's a lot of harm possible if you outsource to the wrong people, but if you do your due dilligence, a dedicated group of experts will be able to use your money far more effectively than you could.
As for "fixing the issues close to you" - you need to realise, that people who have money to throw around are rarely close to, let alone experts in, any such issues. They might want to help the homeless, for example, but if they just buy up a bunch of apartments and let them live there, they might not be solving much. Someone working with the homeless on a daily basis would know to put money towards rehabilitation, education and finding them employment first (from what I've heard - I, too, am not an expert).
I wasn't questioning the merits of working in groups.
However, the only way to have done "due diligence" practically speaking is to engage with an organization that operates near you and deals with something that you have experienced or known someone who's experienced.
Meeting the people who work for an organization, volunteering your time to work with them, observing what they do in your community, is how you do due diligence.
There's also so many faraway causes, how do you prioritize?
The people I know, and the problems that I or they have, are not necessarily the most important in the world. But I have a better chance of doing something appropriate about them, because I'm not limited to vague stereotypes.
Trying to help with something that you know about firsthand also increases the odds that you will be addressing a problem which is common but overlooked by society because there isn't enough money, glamour, or self-actualization involved.
I strongly believe that a personal connection is not just a gimmick for these reasons.