well, according to religion and ethics..... wrong is wrong, stealing is stealing.
Islam says be clear for what is right and wrong....night cannot become day and day cannot become night.
Taking funds but not using for ownself rather spending in wellfare.....is like, trying to keep duniya and Akhirah both side by side.
it cant be done...none of any, neither worldy people is taking him respectfully nor even in eyes of Allah he is gaining any reward .
but obviously ,whatever your friend is doing...he is just trying to satisfying his own conscious.

Pray for you friend may Allah Subhanatallah give him haddaya ...and help him if he really want to walk on Sirat e mustaqeem!