Is diverting donations to a private source fraud?

Question Details: I own a small vending business and I donate all my soda cans and the cans/bottles people bring to me to a local dog shelter because I love dogs. I take a deduction for this, as its a charity. I found out today, from the owner of said shelter, that they use some but give some to a friend of hers that uses them to buy her daughter gymnastics equipment. I'm upset by this and will sever my business association with them. My is this fraud? Like as if, hypothetically, I told people I was donating them to a shelter, but kept them for myself?

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