DH, I asked my husband last night how he was taught to give tzedaka (he spoke to our Rav in detail when we both started working and had actual money coming in). He said the basics of what our Rav said was:
1) Poor/starving people IN YOUR FAMILY
2) Poor/starving people IN YOUR CITY
3) People who need medical or other care
4) Chinuch institutions (AKA local schools or kiruv organizations)
5) Kollel
6) Other nice organizations that aren’t absolutely necessary (like Yad Batya L’Kallah)
Apparently, our Rav said help those who can’t help themselves first.
I guess you didn’t understand my point about the starving person. If a starving person comes up to you and says can I have some food, you don’t respond with “A donation has been made in your honor at XYZ Kollel.” That doesn’t help the starving person’s predicament. It won’t fill their stomach with food.
According to my friends in Kollel, Kollelim are suffering for money. Donations are way down. Stipends in many kollels have been cut or withheld. Clearly, they need physical money.