TLDR; If something is bought with stolen money, what happens to the thing that was bought with that stolen money?

Question

Background Context: I'm putting together a story and there's huge plot point i want to do revolving around a homeless shelter/kitchen and an orphanage both bought by this sort of robin-hood like character who steals from the rich, (cheesy, i know), and what I'm plotting is the government is trying to shut it down because it's running on stolen money. So i just wanted to know what would ACTUALLY happen if something was bought with stolen money? Does it go to the government? The person whom the money was stolen from? Is it still legally the thiefs? 
I don't know if I'll get an answer but that would be super cool! If it's easier to answer me over email, I'll leave my email address below.

Terrence H Thorgaard · Answer

The "person whom the money was stolen from" would be the victim.  The money, if cash, is (after possibly being used in the trial as evidence) would go back to the victim.  If the money was used to purchase something, that too is seized, sold, and the proceeds perhaps returned to the victim.  Finally, if the victim has not gotten all the value that was taken, the thief can be ordered to pay restitution, also to the victim.

Ronald Lawrence Frey II · Answer

I agree with my colleague’s general outline of the process. 
 
Robin Hood “stole” from the government & took the money back from the tax-collector to return to the people. In real-life, he’d end up in federal prison and the “taxpayers” he recovered funds for would probably be branded co-conspirators and prosecuted with him. The government would get all the money. 
 
I wish you the best with your writing.

Q: TLDR; If something is bought with stolen money, what happens to the thing that was bought with that stolen money?