Yes, it is an accusation and she is innocent till proven guilty.
However, they did go to great lengths to avoid having to report where the money was going and who the donors where.
As far as not being illegal, I think we need to wait to see if that is true. From what I have read so far, everybody says this is very unusual and not in the spirit of the law. The same thing with limiting the pay of her staff so they don't have to file. Very curious.