Yea, it is bad in some ways.
I was going to donate a mountain lion hunt to the PBS at Pittsburgh but found out it was illegal unless I had a guides license; donated a selfbow instead. One of my friends manages a ranch and they donate a elk hunt to a local youth and auction off another one for charity (the youth center I think). He was advised it was breaking the law by fish & game..... but none of the game wardens would try to prosecute as there would be very little chance of a conviction.
However, it helps prevent illegal outfitting, which was a super big problem in Montana, now it is only a really big problem.