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Hell, even if they do spend it on drugs maybe it's so they can be numb enough to sleep on the streets.
We don't know how other people deal with this hell-ride we call life, and it's not our place to judge. If they need a little help though, it's not shameful to extend a hand
I drove trucks over the road for fifty years, and panhandlers were always just part of it. I am not so naive as to think that they might not take whatever money I give them for food and spend it on getting high. But I always asked myself, what if he IS hungry and I walk on by. I decided years ago that I would give someone enough to get some food, and what they did with it was not on me - that’s between them and their God. I might not make a difference in anyone’s life, but I may have helped a few get through the night. And that’s about as much as I could hope for.