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It's not a question of being 'legally' used but it is a question of the moral ways in which collections are used in the church.
All churches, whether Catholic or Protestant, have a group of people called various names (Church council, 'elders' Parochial Council and so on) who between them make the decisions for a particular church. It is up to them how money given to the church is spent.
In my own council, of which I am a member, unless money given to the church is ring-fenced (Ie given for a special purpose such as repairs to a building or for mission) money is allocated to where it is needed.
For example, as the church needs a church leader (ie priest or pastor) a certain sum of money is sent to the diocese to help pay that clergy stipend/salary, and also to help train future ministers. After that, running costs (heat, light, repairs, service costs like bread, wine, photocopying, candles and so on) are looked at. Next comes other sundry costs such as honoraria for paid church workers (like the organist) and insurances, copyright licenses and so on. Also cost of outreach and mission to the local community has to be paid for and so there will be a sum allocated for this.
In addition to these, most churches give a percentage of their income - calculated before all the other costs are removed - to charities. Usually churches aim for a Biblical tithe (10%) although the actual percentage varies from church to church.
As churches are non-profit organisations, any money left over (a rarity!) is usually carried forward until the next year, but if this reserve becomes large, then in future years councils then usually revisit their charitable giving and increase that.
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