In this case the Government cannot truly be acting in benevolence since they are not giving something they own.
Do not agree with this point at all. The government is a legitimate entity that does take ownership, whether it is a transfer payment or not. To only look at the pragmatic side of the issue as to whether the government has the right to spend funds within the law is missing the point. That is the nature of a republic...representatives of the people make lawful decisions on how to spend money it has at its disposal, regardless of the source of the funds.
I guess if one wanted to split hairs, the government simply only uses funds gained from the private sector, such as T-Bills, Savings Bonds, etc. for foreign aid. Personally, they have enough bookkeeping nightmares without worrying about appeasing this particular political opinion.
Just as an aside, I'm not sure why the qualifications about difference of opinions? I didn't detect any testiness?