Acksiom, yes, I find it strange as well. Certainly, people in our immediate community are more valuable than people we have never met in other continents. However, I don't think "community" should include beyond those who we actually interact with. It shouldn't include abstract groupings such as "state" or "nation". Supporting your high-school sports team is fine.
Joe, that wasn't my point. I believe ethical theories can and should try to capture the spirit of morality. A truer way to appreciate the value of a stranger's life is to understand that to many people close to her, she is not merely a stranger. I was mainly giving a possible reason for not DRASTICALLY sacrificing your money for donation.
And I fully agree with Stuart that it should an exception and not a rule.