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Not at all! I think that's a wonderful idea! I don't know how anyone could argue with it.
The full disclaimer: we're not doing favors at all. 
Definitely not cheap at all! I think favors are optional anyway. Giving to charities is the OPPOSITE of cheap.
It's a great idea! I would much rather know that favor money went to a good cause. I have a souvenir votive holder from three different weddings. Do you think they're on my coffee table? Uh...no.
Agreed, that is very far from cheap. It's not only a great way to support the charity, but you're honoring your loved ones and raising awareness of the charity and the good they do. Way to go!
I think this is an opposite idea and agree with Indie that it's the opposite of cheap. I think it's really classy, actually.
I love this idea - In lieu of a traditional "favor", our friends donated to the organization which researches and develops medication/treatment for the bride's little sister's disease. I think everyone really appreciated it.
I think that this is a beautiful way to express your love for them! Also, in this economy charities are really suffering so I think it's amazing!
My brother and his wife did this - very appropriate! And as someone that is trying to eliminate clutter from my life, I would appreciate this very much!
I also think that is a great idea! I've also heard of people including thank you cards on everyone's plate that explained a little bit about the charity, and why you chose to donate to them!
My FI and I are making charitable donations rather than spending money on favors. We're still in negotiations re which charities to donate to (there are so many worthy causes!), but we think our guests will appreciate the gesture.
We're going to do this as well - the two we're considering are The American Cancer Society (my grandfather and his mother both passed away from cancer) OR the ASPCIA (We're both big animal rights people)......can't choose but leaning toward ACS
I don't think that seems cheap at all, and it's a great way to honor your family. Go for it! 
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We're getting married in November of this year and I started to stress out about favors as well as everything else. We decided to honor my parents and his brother who are deceased by making contributions to the associated charitable organizations and then have the tents on the table telling the people there that we donated to two charities to honor our loved ones.
Do you think that makes us look cheap?