A cruise might cause me to raise an eyebrow. Home repairs or a car? Not so much. When there is illness or injury in a family, insurance may cover the cost of treatment, but the family finances are going to suffer even without an outlay for medical bills. If the ill or injured person is a wage earner (perhaps the sole wage earner), then his/her income is gone. If it's a child, then a parent may have to quit or take unpaid leave from his/her job to care for the child.
If the home is unsafe or unsanitary and desperately needs work, and my contribution to the ____ Fund can help with that, I'm all for it. Ditto if the family needs to replace an unreliable beater car with something newer and safer to transport the ailing member to treatments.
Where I live, there are a lot of privately organized fundraisers for people in need -- catastrophic illness, injury, fire, death of the breadwinner. The organizers tend to be pretty up-front about what the money is going for. Sometimes it's coverage of medical expenses not covered by insurance, sometimes it's indirect things that are needed to help the person recover (as with the home and car examples above), sometimes it's just to help the family get on its feet after a disaster. If the family needs the money for a car or utility bills, rather than medical bills, the organizers say so.
Most of the time at these private fundraisers, things that would require a financial outlay, such as the cost of the venue, food, entertainment, are donated or provided at cost. I feel better about donating at a fundraiser "for Bob's family" than donating to Big National Charity that may, indeed, help Bob's family but also has to pay for employees, offices, etc.