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Wait, so what happens to the $10? Who does that go to? $20 for each block, while $10 goes to charity.
Maybe I'm just dense, but this sounds like you're selling advertising slots on a giant virtual billboard and collecting a 50% commission while using charity and a free 3GS iPhone as the hooks. And then you're going to have it in the App Store for free, so Apple gets no revenue as people click through to go to websites and make charitable donations? Have you submitted your app and the plan as described above to Apple? I highly doubt they will approve your app unless you withhold from them the information you just gave us.
Is there a specific charity that the money goes to or has that not been determined? If it has been determined is it local?