It remains a moral dilemma as to who you should give something to and who not 
Tru dat... some areas are so infested with beggars that it can desensitise one to their plight. Not to mention the con artists that ply their trade, not really being needy, but just choosing to live the life (and here I'm speaking from my experience in the years I worked in Cape Town CBD). Thankfully, these days, I don't frequent such areas. I do sometimes give to beggars; always give to "car guards", whenever I can. And, besides, we have our fair share of kids knocking on the door during the daytime; we try to give what we can.
I've figured (for me) it is best not to have a policy of who to give to: here I follow my whim. I don't feel bad about not giving to beggars even on occasion that I might actually have change in my hand: to be sure there will be other opportunities.
And so, let me take the opportunity to introduce you to
Freecycle, if you're not aware of it. A useful network for passing around your unwanted goods to others who might need it.
Edit: I agree with Mervin about cycling in the family. Sometimes I pass stuff on to family members; often they don't appreciate its value, though. I do have an "extended family" of peeps who are not blood relations. I figure, help out where you can, even if it is for the selfish purpose of feeling good about having made a difference.
