Is it permissible to donate money taken from a military institution—money that cannot be returned and, if returned, would be stolen—to mosques and schools in dire need?

The Prophet, peace and blessings be upon him, warned against taking public funds unlawfully, describing the one who takes them as like one who eats but is never satisfied, and that he will meet Allah on the Day of Judgment carrying what he took, and that the Fire awaits him. Whoever has taken anything from it unlawfully must hasten to return it to the responsible authority or to the state treasury. If it is not permissible to return it to them – for instance, if they would not spend it properly – then it can be spent on general Muslim interests such as mosques and schools.