Is it permissible to donate a sum of money mistakenly received from government housing assistance—after the beneficiary entity refused to reclaim it and out of fear of legal repercussions—by distributing it to governmental charitable organizations with public projects, in order to absolve oneself of responsibility for it?

Money taken unlawfully—it was obligatory to inform the responsible authority to stop it. If it cannot be returned except with greater harm, then the way to dispose of it is to spend it on charitable causes and public government projects or public welfare associations. By doing so, one absolves themselves of responsibility.