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I don't think it's necessarily bad to evaluate/judge what they spend it on, but ultimately if that's your reason for not giving ("bad thing") then it's probably just an excuse. I say this to mean I can know they likely will buy liquor and I wish they would buy food instead.
I give homeless people money sometimes knowing they are lying or might not spend it wisely but I reason that they got into that situation through a lot of bad luck so whatever they decide to spend it on is on them. I have a friend who couldn't believe I'd given money to a homeless person who lied (they had a quite unbelievable story that sounded like a huge lie anyhow). I explained to my friend that them lying doesn't mean they don't have a good reason to need money. They're only doing it out of desperation and clearly need money.
I’ve certainly given based on entertainment value of a tall tale