Does a charity stop being charitable when it needs funding and receives donations?

Needing funding and receiving donations do not mean an organization ceases to be charitable. Continuing to help people involves administrative and practical expenses. I think it makes sense to allocate part of the donations to sustaining that work.

For example, traveling elsewhere to volunteer in restoring the appearance of the deceased involves transportation and meal costs, and those doing the work also need to live. I greatly respect people who are still willing to give their efforts without financial assistance. Some financial support can make many activities easier to carry out, and that is good too. Receiving a subsidy does not suddenly change all the original effort into something else.

But from the perspective of spiritual practice, gaining more recognition and reaching a higher position also calls for greater care. If you are willing to take the work further, tests are always present, including demonic tests. I discuss this to remind people to take greater care of their hearts when they gain reputation and support, and not fall for tricks that divert their good intentions.