I was raised to believe that 7th Tradition money is the AA Groups meetings money.
It goes for stuff like rent, lights, coffee, cake or cookies and candles for birthdays, newcomer chips, directories, and the basic stuff like that -- that's related to the meeting.
If there was money left over, outside of keeping a prudent reserve -- it could be used to include AA literature, and the rest of the left-overs were divided up w/ Central Office, then, Area Service, and then, World Services.
In larger meetings we'd have a literature fund separate from the 7th Tradition basket.
In November, we'd customarily pass a second basket, or put a can out -- and those donated funds were sent directly to Central Office to help w/ their expenses.
Anything else came out of our own pocket.
If an AA died, it was usually one of us, that got the card and flowers -- and just put a note on it "From your Mason & Lassen Street (the meeting name) Friends." Or, something like that. Then, when others wanted to pitch in w/ a donation to cover they cost -- they'd usually ask "who bought the flowers?" And, they'd offer to pitch in.
Usually, the groups decide for themselves how they want to do things. I do think that we can sometimes get carried away w/ getting too Orthodox in the Traditions to the point of getting complicated and legalistic and fussing over one right way versus another right way of doing something in AA. Boards, committees, and business meetings are places I like to avoid.