I've never had to deal with a homeless person. True story.
I did give money, loose change, to some huge crazy (or mentally-ill) dude once though. He ran up to me as I was getting into my car, just jumped the question on me so I didn't even have time to think. That's how you do it.
Even if some homeless are just lazy douchebags, the majority seem like they've probably got serious issues (and I know it can be hard to get a job sometimes) so although you might be encouraging them to continue as is, it seems like the right thing to help them out when you can... better to give food certainly, that way you know they aren't going to spend it on something less-nutritious :hsugh: