Q. Is matchmaking a suitable use of charity funds?
A. A cardinal principal of the Torah is "It is not good for man to be alone" (Genesis 2:18). When we see the large number of single men and women longing to find the perfect match, it is only natural that as neighbors and as a community we seek to help them.
Some Jewish organizations conduct various events to encourage meetings between unmarried people. These may include mixers, "speed dating" and so on. Another way meetings can be helped along is by actually setting people up. A few Jewish schools where many single people study have an informal but recognized position of "student matchmaker" who makes it her job (usually but not always it is a woman) to become familiar with the students and keep her eye out for suitable potential matches.
Matchmaking is considered a worthy activity in Jewish tradition. A well-known Midrash describes God Himself as a matchmaker:
A [Roman] noblewoman asked Rabbi Yosi bar Chalafta [as follows]: How many days did it take the Holy One blessed be He to create His world? He said, Six days, as it is written, "For in six days the Lord created the heavens and the earth. She said to him, and from then until now what does He sit and do? He said to her, He arranges matches.(1)
The rabbis taught: The father is responsible towards his son to circumcise him, to redeem him [if he is captured], to teach him Torah, to marry him off, and to teach him a trade. (2)
Surely open your hand and lend him enough for his needs, whatever is lacking to him.