Must someone who gave money to a needy person, thinking he was in hardship, then later discovered otherwise, reclaim the money and direct it to another cause?

If a person gives money as charity (sadaqah (definition)), he is not obligated to reclaim it, and he will be rewarded for his intention, as narrated in the noble Hadith (definition) about the man who gave charity to a thief, an adulteress, and a rich person, and his reward was confirmed. However, if the money was a loan, he has the right to demand its repayment and to spend it on others if he wishes, which is preferable if the borrower is not in financial difficulty. The gist of the matter is that he is not obligated to reclaim the money in any case, because the right to the money belongs to him, so he can waive it.