This right here: "And still other times someone will "borrow" another entity's EIN to open up the account."

I've done a few of these, and not only 501(c)(3), but (4), (6) and even (7). In FL, the Department of Agriculture oversees this sort of thing. It's pretty weird. I helped a library support organization, for instance. Supporting public institutions (friends of the library, friends of the national park, friends on the fairgrounds, etc) are even easier. I've also gotten involved when someone needed to reactivate an organization, understand if they were under a group exemption, and when they lost their classification.

For right now, they would likely be better off finding an entity they want to support, then sponsoring the fundraiser event or program under that umbrella. For example, some 501(c)(3) can have a 501(c)(4) arm. I can hold a Toys For Tots event, without being a NFP organization separately. That allows them to avoid all the organizational efforts and requirements, because they likely don't have the resources to get bogged down in all of that. And it costs to start the filing, which might be as big a drain as what they wanted to achieve.

For donations, this also solves the problem, if you mean Cash. But, also consider that items and anything In kind from businesses is not really a donation. The business considers it as part of marketing and advertising, or it is unused inventory or photocopy services or free labor (thinking about our skate parks from Jeff Ament) or even K-Mart used to offer a bunch of kids bikes and child safety seats, if you asked.

People should only rush to form an organization when they have a significant need. Example: An entity is offering a large grant, or a facility requires you to be NFP before allowing you to use the place (like the food booths at the fair). We have the Band Parents, the Sons of Norway, the Sweet Adelines, all selling food at the fair. The fairgrounds will contract with you for security at the demolition derby or the horse racing or pay your organization for clean up, too.