It doesn't matter how the money gets spent, the money is only important for the prestige it bestows on the winner and the tournament as a whole. The Twink Cup isn't about money, it's about love and the pursuit of glory. The 19 twink bracket in WoW offers a kind of acceptance and fraternity that's difficult to find elsewhere, and at a much lower cost. In real life the path to acceptance for those that can find it is often paved with violence and drugs, and glory is reserved for the few. The Twink Cup strives to provide an opportunity for people to experience things that they otherwise wouldn't, and to extend that opportunity to as many people as possible. The money is the beacon and the source of this glory.
The trust of an entire community is not something that's easily earned or wisely squandered. To have such a large amount of people share your vision and work to make this vision succeed is a beautiful thing. You don't need to go to Africa to find a worthy cause or deserving people. I've had several people tell me directly how important the bracket has been in getting them through the struggles of life, and there's been one person that I considered a friend that didn't make it. I've experienced first hand some of the "causes" that other people have to offer. I was kicked out and arrested when I was 15, I lost my friends shortly after, many of whom were on drugs. I spent most of my time playing 19 twinks until I was forced to see a counselor, her exact words were "no one would care if you died." This is the narrative of so many of these so-called benevolent causes, that you're unimportant, that you're a monster undeserving of friendship or acceptance, that you'll never amount to anything.
The goal of the Twink Cup is to present a different narrative. You can succeed, you are good at something and you deserve recognition, you will make friends and find acceptance. The Twink Cup is to be a light providing warmth and hope in a cold, dark world. If you can present me with a more worthy cause I'd love to hear it.