While much has been made in the media about the overwhelming generosity being shown by Australians in donating money to relief funds, little of that money seems to be making its way to where it's most sorely needed.

The problem is the lack of clarity around what happens to donated funds as they accumulate.

The various charities involved in receiving and distributing donations, including the Red Cross, the Salvation Army and St Vincent de Paul, have all come under criticism for taking too long to distribute the millions of dollars that have been donated for bushfire relief to date.

NSW Road Minister Andrew Constance, among others, has suggested that the money is being absorbed by marketing and administration costs.

Donations to the charities for bushfire recovery have so far reached almost $170 million, but less than a quarter has been handed out to survivors.

It's a frustrating situation, as those no longer in immediate danger are now faced with the long process of rebuilding homes and businesses.

But it is worth pointing out that charities are also working around the clock to deal with extraordinary circumstances. Allocating funding is likely a far more delicate operation than people realise.

Red Cross director of Australian programs Noel Clement detailed last week the amount that had already been paid out, and how many more payments were in the pipeline.

He pointed out that checking applications had been complicated for many people because their documents had been destroyed.

He said no more than 10 per cent of donations would be spent on administration, and a proportion of funds would be held back to support longer-term recovery efforts.

The Red Cross, along with other charities and, indeed, most Australians affected by the fires are in uncharted territory when it comes to the scale of destruction and resulting need.

We should remember it needs to be done right, and charities could be given the benefit of the doubt when it comes to doling out funds as efficiently as possible.