I don’t see how donating it is any less morally wrong. Between what he did and what you propose, both involve using the money to fix the same problem. The difference is just
whether he provides the services himself or someone else does and
whether we fix it through prevention or treatment after the fact.
It sure is better, but still an unnecessary evil. He should have donated the money to conversion therapy victims or gave it all to the kid.
You are saying as if stealing the money is inseparable from the good deed he did. He could do it without also helping himself to the money.
I don’t see how donating it is any less morally wrong. Between what he did and what you propose, both involve using the money to fix the same problem. The difference is just