I give them money if I have spare cash on me.
They need it more than I do.
As to what they use it for, they are adults and can make their own choices, whether it be using it to pay for a EduX course ( unlikely ) or buying heroin ( unlikely ).
If you or I became homeless ( admittedly unlikely ) and begged for money ( hopefully unlikely ), surely you would want to be given money rather than fake friendliness or food.