I think that whatever an organization wants to do with it's money, it should, so long as dogs are being taken care of and are safe. If you don't like what they do, don't support them.
I've worked at "no-kill" shelters and a true sanctuary. I enjoy knowing that some people really just want to give dogs who truly wouldn't be alive otherwise a quality of life. At the same time, adoptable or semi-adoptable dogs being in a sanctuary for two-three years could be considered money wasted and could have saved 20-30 other dogs.
No kill/kill shelters tend to give a less quality of life to the dogs, but they get them out or put them down in a timely fashion. Sanctuaries keep them for a long time and give them a decent life. *shrugs*