effectively taking £1m from the NHS
Thumbs up; this is exactly my concern. Particularly when the charity sector (at least down here) is notoriously poorly operated, with waste and duplication. There should be standards for funds raised disbursement vs. consumption in internal expenses in order to maintain charity status. And the religious organisations running profitable services tax-free ought to be reigned in as well.
Then there's the exploits where the wealthy set up their own charitable foundations, launder in their tax deductable contributions and then take themselves out to expensive lunches on the foundation's dime. There should at least be some 'arm's length' rules to prevent this kind of self-dealing.