How does a person get rid of stolen items that he currently possesses but doesn't know who their rightful owners are? Does he just burn them or can he give them away to someone in need?
All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad is His slave and Messenger.
The correct way of getting rid of stolen objects is to return them to their owners or the inheritors of these owners if the person knows them and can find them. But if the person who has stolen the properties does not know them and cannot find them, or if these belongings are originally from forbidden earnings (bank interest), then he should either give these stolen things as alms to the poor or needy Muslims, or spend them in the public interest of the Muslims. It is forbidden to burn them or spoil them.
The public interest is anything which does not benefit a given person and which profits to the Muslims on the whole such as: building bridges, paving roads, building schools or houses for orphans, etc. Some scholars believe that this kind of earnings should not be invested in building mosques.
If he happens to know the person or his inheritors after having given the stolen thing as alms, he should then give a similar thing to them, or give its value if it can be valued; and, in this case, the reward of what he has given as alms is for him and not for the other person. The person should hasten to return the stolen properties. He should not hesitate to get rid of these unlawful properties. Unlawful earnings interpose between the person and Allah's answer to his supplications; this is enough to make one get rid of them as soon as possible.
Abu Hurayrah narrated that the Prophet said: “O people, Allah is Good, and He accepts only that which is good. Allah commanded the believers as He commanded the Messengers, by saying (what means): {O messengers, eat from the good foods and work righteousness. Indeed, I, of what you do, am Knowing.} [Quran 23:51] He also says (what means): {O you who have believed, eat from the good things which We have provided for you...} [Quran 2:172] He, sallallahu ‘alayhi wa sallam, then mentioned a man who travels a long distance with his hair disheveled and covered in dust, then he raises his hand towards the sky (and supplicates Allah), 'O Lord, O Lord,' while his food is unlawful, his drink is unlawful, and his clothes are unlawful and his nourishment is unlawful. How then would his supplication be accepted?" [Muslim]
Allah knows best.
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