There are no options given as to what police should do with the seized funds, so I'd say, give it to me. Seriously though, there must be a legal procedure for dealing with seized funds, and I don't know what the policy is in NY. If they are stolen and can be traced to victims of theft, then those victims should be compensated as much as possible. Otherwise, I assume that the government will take control of the money.
The NYPD should donate that money to programs and schools that are woefully underfunded. Maybe if more investment was made to the younger generation, they would not be so predisposed to violence. They could invest in more education for the poorer section of New York or better programs to teach kids about opportunities they could have. They could also donate it to a scholarship fund so one of those youth brought up in a rough neighborhood can go to college to better themselves.
The latest $18,000 seizure during an arrest by the NYPD should be donated to a local charity; perhaps one that funds programs against domestic violence or child abuse. Depending on the circumstances of the arrest and case, even an animal charity could benefit from such a large lump sum of money.
Police should use the money for good by giving back to the community. A lot of police face questions over their morality these days; therefore, they should help mend some of the hardships between themselves and those they are meant to protect. It would be nice if they donated it.