I won't give to someone just asking on the street. I will however, give to a StreetWise vendor.
I like StreetWise because it's putting the impoverished to work and they can have some pride in what they are doing. I think it costs $2.50, but they'll give you a newspaper for whatever you give them. The articles are really good and some of the vendors write them.
By donating to the licensed vendors I know where the money is going. If I would have given the panhandler money, I would be afraid I would have just supported a habit that contributed to their position in life....drugs and/or alcohol.
StreetWise is in Chicago, but I have seen similar programs in Cincinnati, Seattle and other major metropolitan areas.
StreetWise