The idea is not entirely stupid.
I have been approached by a number of possible clients over the last 4 or 5 years to make some kind of app that allows people to send thoughts, prayers, gift etc to other people who you may or may not know.
This kind of thing is alien to me, if i like you enough i will actually make an effort, not use some website or app. Nevertheless, enough people do think like this and religion doesn't help. Just look at how many muppets click like and share on the picture of the kid with cancer.
Having said all that, she was welcome to do exactly as she has done with a private investor and fail privately (like everyone else). The problem here was public money being wasted.
People want to be nice to each other and send good wishes / help. But people don't want to pay to it.
Its not a difficult concept to grasp and a little research beforehand might have given a hint at that.
None of this is helped by the "sharing economy" .. where i share freely and a company sells it for profit. More people are wising up to that.
Want to help someone;- visit that elderly neighbour, buy the big issue, sign greenpeace petitions...