here in Madison, this past winter they shot down a law prohibiting people from panhandling near intersections, atm's, etc (guess the ACLU didnt like it); and since then there will be people out in the intersections by the malls, major roads, etc. Often you'll see multiple people 'working' one set of lights covering all corners. The city is looking at ways to bring back the law, though really what's a fine going to do if someone doesn't have the cash.....
Even the area homeless shelter providers and advocates will say not to give them any money, offer food if you want. Said most out there have never contacted these shelters for help.
The sad part, and what makes the wife and I feel bad at times, is there are folks out there who need a hand, esp children. I just prefer to give money to an organization or pantry to help those who need it, and hope it gets to the right people. And i would not be surprised, if those out there abusing the system can ruin it for those who need that hand.