I'm not saying that to take away from it, but people do things to feel good, or because they get something out of it. Either way you are being rewarded.

This explains plenty of bizarre outcomes. I was speaking to a guy who worked at a food bank. They would take cash donations, buy food at full price at the supermarket, then have volunteers (in a paid for space) pack up boxes.

A more sensible route would be food vouchers. People can buy what they want, no money spent on rent, so more goes to those in need.

But donators want to feel they are donating food and volunteers, probably mainly the higher ups feel that all this unneeded machinery is 'productive' therefore more meaningful / they are in charge of actual people and a physical location which makes them feel important. Thus the inefficiency continues.