The last time I gave money to a begger, I saw him drinking a Sleeman's beer on the street about 15 minutes later. It wasn't even cheap booze! He was about to ask me for money but quickly realized that he had already hit me up and turned away. That was probably six years ago. Now, I'll donate money and time to organizations such as the Mustard Seed.
I recommend that anyone reading this go spend a few hours serving a meal at the Mustard Seed. Talk to the people coming for a meal. Say hello, smile at them. Then talk to the staff. You'll learn a lot more about why people are there than you will in the idle speculation of an internet forum.
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