As an FYI, the money in these situations usually goes to 1. Pay for site upkeep & to buy higher quality raws for the series they are currently translating, 2. Pay translators & staff so they can eat/pay rent, 3. Buy HQ raws for new series.
I don't see any problems with 1–3 provided they aren't "selling" the works, but soliciting a "suggested donation" to help keep the lights on/reimburse costs like any other charity. That's fine as they are effectively doing a service—translating content in areas the "official" publisher doesn't want to expend money to publish.
Despite all the howling from the publishing industry, they have long depended upon fanlations groups and the feedback of readers to help determine what series to port to other countries/languages. It's a long known/held open-secret.
The REAL issue is authors and artists (and other production staff) getting screwed by publishers (similarly to other industries). The ongoing writers strike in the US is just one example of the exploitation culture.
Publishers and artists have to go to extremes to "protect" their copyright or else they can lose it legally. It's really BS. Like, there needs to be a better solution. Fan art/fiction/films/shows/etc., all inevitably suffer from this BS.
That said, one thing fanlators offer is multiple interpretations and readings/content/etc.
This last chapter is a key example. All of the "translator's notes" that vary between teams are helpful for readers and ultimately push the quality. It's one reason why I personally believe these media conglomerates are so opposed to "fan works". They provide a basic standard that the studios then have to one-up to get people to shell out for. Basically, raising the bar. They HATE that! 🤣 [They hate competition.] Same goes in the publishing industry. Fanlations simultaneously increase translation competition while also raises the bar for what publishers actually have to produce to get readers to buy.
If you want a "half-assed to kinda good, to possible real good to AMAZEBALLS" you can often find fan translations for works that exist. If a company wants to get US to pay, then we have to get something more than we'd get buying the original work in the original language and reading a fan translation. It isn't worth the markup. They have to go out of their way to sell us on the content by upping the quality. If they do that, make it really worth it, then people are more apt to pay. Ergo, shit dies in monopolies. Ideally, authors & creative teams would have lots of publishers publishing their works and they'd be able to get them to fight over the content by upping the standard, which benefits creators & their fans.