Baloney, it just gets dumped into the General Fund.
I'm always leery of these claims. Back in my more naive days, I used to do the United Way drives at my office. There were some who objected to UW money going to such things as Planned Parenthood or whatever. As "reassurance", UW allowed you to direct your contributions to a specific organization (i.e., your local Girl Scouts). What they didn't tell you is that they then reduced that organization's allocation from the general fund, so they ended up with the same net. Then the UW was scandalized by corruption by its officials, and long story short, I'm not quite as naive anymore.