[pewpewlasergun]

This is actually what those sponser-a-child/build-a-well/kiva type charities do. For example, go to kiva and you'll see a bunch of people you can lend money to. These people already have loans, you aren't actually lending money to them. So, its not a dumb idea and has worked for other charities.

So for the family example, maybe print a catalog with food, furniture, ect. and a mini bio of the family and present it as buying stuff for that family. In fact, you already helped that family and the money goes to help the next one.