The organization is a 501(c)(3) public charity. They are charity gigs. However, you are right that they are an extremely expensive way to raise funds for charity.
501(c)(3) definition - finance The section in the Internal Revenue Service tax code that describes the criteria an organization has to meet in order to receive tax-exempt status; such an organization is a 501(c)(3) organization. The organization may be charitable or religious, or it may be set up to promote common interests, such as the environment or running. One advantage of being classified as a 501(c)(3) is that donors can deduct their contributions from their income taxes.
A Charity that uses up everything it takes in in donations on expenses would be a pretty lousy charity. However, that is not what the tour is. The tour is the fund raising device and is a different organization from the charity..
See my point?