The churches I have attended use some of that money to cover costs (staff, building costs/maintenance, some into a savings/emergency fund) and pretty much the rest goes local (food programs, ESL classes, etc., community organizations) national and international organizations (schools, wells, orphanages, clinics, etc). All organizations these churches have partnered with have been chosen carefully based on the work they are doing/where the money goes. Buildings aren't anything special, pastors/staff aren't living extravagantly and they are serving the community.
Granted this is not true for all churches and those that try to extort those around them piss me off, but a lot are doing good, practical work in their local communities without stuffing Jesus down anyone's throat.