Yes, there is such a thing as good and bad money, because after all, money is energy. Why is money energy? Money gives energy. Money is power. Money is a form of prāṇa, captured in paper, in silver and most importantly in gold. Actually, gold is the real money, the basis of all paper money, coinage, checks and bank drafts.
Good money is righteous money, funds derived from a righteous source, earned by helping people, not hurting people, serving people, not cheating them, making people happy, fulfilling their needs. This is righteous money. Righteous money does good things. When spent or invested, it yields right results that are long lasting and will always give fruit and many seeds to grow with its interest and dividends from the capital gains.
On the contrary, bad money does bad things—money earned through selling arms or drugs, taking bribes, manipulating divorces, performing abortions, fraud, theft, riches gained through a hundred dark and devious ways. Bad money issues from a bad intent which precedes a wrongdoing for greed or profit. That is bad money. When spent or invested, it can be expected to bring unexpected negative consequences.
Good money is suitable for building temples and other institutions that do good for people. Bad money is sometimes gifted to build temples or other social institutions, but often only to ease the conscience of the person who committed sins to gain the money. Nothing good will come of it. The institution will fail. The temple will be a museum, its darśana nil. Its śakti, though expected to be present, will be nonexistent. Bad money provokes bad acts which are long lasting, and it sours good acts within a short span of time in the lives of the people who receive it.
It says, true devotees of God, knowing that bad money is cursed and can never do good deeds, refuse funds gained by fraud, bribery, theft, dealing arms or drugs, profiting from abortion or divorce, and all dark, devious means. Some postulate that using bad money for good purposes purifies it. That is a very unknowledgeable and improper concept, because prāṇa, which is money, cannot be transformed so frivolously. Many among this group of misguided or naive individuals have lived to witness their own destruction through the use of tainted wealth. Also, this brings them into the illegality of laundering money. Money cannot be laundered by religious institutions. Money cannot be legally laundered by banks. Money cannot be laundered by individuals. If bad money is routinely accepted in abundance and depended upon, it will bring an avalanche of adharma leading to the dissolution of the fellowships that have succumbed, after which a new cycle would have to begin, of building back their fundamental policies to dharma once again.
We came to this world empty handed. We have made everything over here, be it relations, money, love or respect. We cannot take anything with us when we die. Everything would be left over here. So we should not really do evil things when it comes to the question of our respect. Nor should we be really concerned about making as much money as possible. We should be satisfied with what we have as everything would be left over here in this material world, we won’t be able to take anything with us – Bhagavad-Gita