What you say is 100% true for some. I saw a poor family run a fundraiser for themselves; they spent $300 on a donation party that brought in < $50 (and was unadvertised except amongst friends). Truly dumb implementation, by not-dumb people.

It is 100% not true for others. My neighbors know every damn trick in the book for welfare; it's a part of their budget. More money removes serious obstacles in their days.