There's plenty of reasons why I don't give out money.
First, there are those that play music, or use some skills to make stuff to sell. Fair enough, you're trying. I've seen a couple of people around the area who are deaf-mutes, or wheelchair-bound, who carry a tray full of stuff - tissue packs, hand sanitizers, gum, etc. I'd normally ask how much something costs, then give them enough to round off a ten, then leave without taking the merchandise, because at least they are trying to make a living.
I get that people can be down and out with their luck, but they still try. For me, that's the big difference.
When I was 13, I was playing in the front yard when someone knocked on the door (it was walled-in, not like the open gardens you typically have in the US). I answered the door, and a guy was standing there, asking if my dad was home.
I went and told my dad, and told him I didn't know who he was, but my dad went to talk with him anyway.
After about ten minutes of conversation, my dad came back into the house. I asked him what the man wanted.
He said the guy had recently lost his job, and his wife was pregnant and about to give birth any day. He needed a job to support his family until he could land on his feet again, and asked whether or not my dad needed any help around the house. My dad hired him as a general handyman.
He stayed working diligently with us for about two to three months, until one day he told my dad he had found a stable job again and tendered his resignation. A month later, he moved on. Still, he'd come visit us every couple of months, introduced his wife and baby son to us, and became good friends.
The lesson my dad taught me with that was there is dignity through work, and it should be recognized.
I've had my share of friends who have taken great falls due to drugs. One of them realized he was addicted and bargained a real with the clinic whereby because he couldn't afford treatment, he'd exchange the cost with working there until he paid it off. He already paid it off, and now is still working there full-time, and happily married.
Contrast that against two other friends from way back who lost their jobs, family and friends due to drugs, and now wait at stoplights to bum change from the drivers so they can buy their daily fix.
That's why if someone asks me for money, I offer to provide them with a job instead. To date, none have accepted, and over half have told me to go to hell. Hence, why I don't and won't give handouts.