Final answer:
Funds from fining heretics often went to the church or the religious authority that levied the fine, such as in the case of indulgences sold by the Catholic Church to rebuild St. Peter's Basilica during the time of Pope Leo X. This practice was part of the critique by Martin Luther that led to the Reformation.
Step-by-step explanation:
In the context of the historical practice of fining heretics, the money collected from such fines typically went to the religious institution that levied the fine, often the church or body conducting the inquisition. For instance, during the Reformation period, Pope Leo X granted indulgences to raise money for the rebuilding of St. Peter's Basilica in Rome. If a heretic was fined, like those who were accused of heresy and chose to recant, the funds would usually support the church's initiatives, such as construction projects, or go into the coffers of the religious authority in charge.
Moreover, the sale of indulgences, a practice that Martin Luther vehemently opposed, was a prime example of how the Catholic Church accumulated wealth. Luther's protests, including the Ninety-five Theses, were critical of this and many other practices of the church. Additionally, the notion of raising money through selling indulgences or fining individuals for heresy was controversial and led to significant debate and reform within the church.