Do you care if they buy booze and cigarettes? I for one do not. If it makes you happy to give them a few bucks, do it. I do not charge this against my charity budget, however, but my discretionary budget. But that impulse causing you to take money OUT of your charity budget may be a poor choice, as there may be charities about which you care more than beggar booze. Bottom line, giving to beggars is consumption not charity and if you get more happiness that way, do it. Or go buy a bunch of mini liquors and hand them out; I did this once and I felt great afterwards.