I just assumed all that money goes towards maintenance of the Kotel; cleaning, buynig new siddurim, chumashim, tehillim, chairs, bimas, kippot,and the like.
It turns out, according to Kol Hai News, that only 2/3 of the money collected in the boxes get used for general maintenance of the Kotel area (and other holy sites), while 1/3 of the money gets distributed via committee through the Ministry of Welfare to organizations meeting certain criteria and for helping the poor through "kimcha dpischa" programs.
I had no idea.
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