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A few things. My policy for all people is that if they ask me for something specific, then I will not give it to them on the spot. Doesn't matter whether it's panhandling or selling something or asking for signatures. I don't like being put on the spot, so I'm going to either research it on my own or follow some policy.
My policy about panhandling is to give money to food charities instead. Not because I think it's wrong to give them things, but because it makes more sense for me logically and emotionally.
Emotionally first. I don't get that emotional rush that other people seem to get for giving out money to a needy person, but I do feel a lot of remorse if I think it was a mistake. Sometimes, their response to a donation makes you feel really bad, and you don't ever get that if you just ignore them.
Logically next. A person without a home cannot buy food as efficiently as even a badly run charity. They don't have a refrigerator or even a safe place to store food, so they're forced to buy ready to eat food at several times the cost. Even if I did hand out money to individuals, I wouldn't do it without a budget. It just makes a lot more sense to give the same money to a charity, instead.