Is it permissible for the head of a charitable organization to allocate donation funds designated for needy families to sponsored orphans, and count these funds as part of their sponsorships, even though there are other unsponsored orphans and very needy families?

Those in charge of charitable organizations are agents for the donors, and they must act according to what they have been entrusted with. If the funds are designated for needy families, then they must be disbursed to those families, and it is not permissible to delay their distribution to their intended recipients. The questioner should advise the official responsible for distributing aid.