Have you ever wondered what the panhandlers you see on the street would do if you actually gave them a bunch of money to spend? Like many people, I generally give my pocket change to anyone who asks. I figure that if they have to ask, they probably need it more than I do. (Yes, I know that there are just as many folks who think this is ridiculous, and who never give anything to folks on the street. What can I say? The empathetic J.D. almost always get his way over the logical J.D. Exception: I never give to aggressive panhandlers.)
Last weekend, the Toronto Star featured a fascinating article from Jim Rankin about a little experiment he conducted. He actually decided to give a few handlers more than just pocket change:
Over the past two weeks, I wandered Toronto’s downtown core with five prepaid Visa and MasterCard gift cards, in $50 and $75 denominations, waiting for people to ask for money.
When they did, I asked them what they needed. A meal at a restaurant, groceries, a new pair of pants, they said. I handed out the cards and asked that they give them back when they’d finished shopping. I either waited at a coffee shop while they shopped or — in the case of those who could not buy what they needed nearby or were reticent about leaving their panhandling post — I said I’d return on another day to pick up the card. That’s when I would reveal that I was a journalist.
Some were unbelieving at first. All were grateful. Some declined the offer. Some who accepted didn’t come back, but those that did had stories to tell.
As you might expect, different people did different things with the gift cards Rankin gave them.
- With a $50 card, Jason spent $8.69 at McDonald’s before returning the card.
- Mark used his $50 card to buy a $21.64 meal at a local restaurant and then spent $15.50 at the liquor store. He didn’t return the card.
- Rankin gave Joanne a $75 card, which was stolen by an ex-boyfriend. He used it to spend $24.95 at McDonald’s and $38.35 at the liquor store.
- Al took a $50 card, but never used it and never returned it.
- With her $75 card, Laurie bought $74.61 in food, cigarettes, and telephone minutes. She returned the card.
Though there’s no real Big Message to be taken from this feature, I think it’s fascinating. Most of the time, homelessness is used to polarize people on one side or another of a political issue. But sometimes we forget that panhandlers are real people who have stories behind their predicaments. Rankin’s project was a clever way to get at some of those stories.
[Toronto Star: How panhandlers use free credit cards]
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I am wondering if Jim Rankin’s experiment was inspired by this recent and very real NYC story:
http://www.nypost.com/p/news/local/manhattan/hey_give_the_bum_credit_ny_post_exkUGF3qG7YIwOQNc4kGoN
SoHo-er Merrie Harris, after realizing she had no change on her, gave away her Amex card to a homeless man who said he wanted to buy water and cigarettes…and promptly got it back. It was a much talked-about story here.
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I keep granola bars (that don’t have chocolate or something that will melt) in my car and they get handed to anyone with a hand out. Most people seem very grateful even for the small gesture. I have considered pre-paid cards to grocery stores or restaurants. This makes my more inclined to start doing that.
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This is interesting. What’s most interesting to me about Rankin’s story is that many of the people he tried to help were on waiting lists for public services.
Don’t know if it’s just because I’m in L.A. and we have a large homeless population, but what I hear all.the.time. is that homeless people “choose” it. I think that’s a load of crap.
I would wager that in America it is even harder for someone who is down-and-out to get services than in Canada. And I’m positive it is next to impossible for someone who is mentally ill or addicted to drugs (which amounts to the same thing) to think through what they need and how to get it.
I never reach into my handbag on the street, but if I pass a certain type of panhandler – the polite, sober type – going in one direction, I will have money in my hand coming back the other way.
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I wonder if they had a Taco Bell nearby? $50 there goes a lot further than McD’s. (My college friends might as well be homeless… and thats what they eat!)
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The article was quite interesting.
I think it shows that a lot of homeless people have mental problems or aren’t smart enough to have a normal life. Of course, drug and alcohol use is there as well.
Some of the people turned down the offer or took the card and didn’t spend it. Not normal behaviour.
Mike
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The only time I feel compelled to give to panhandlers is when I am with my wife and/or kids and feel there is an immediate threat to them. Otherwise, I politely refuse and wish the person well.
I already give to charity and pay taxes to support welfare causes. I don’t need to feel better about myself by giving to every sap that has a down on his luck story in my neighborhood, which seems to be growing at an alarming rate these days. Giving to panhandlers, IMHO, perpetuates the problem. If no one gave, panhandlers would stop panhandling and perhaps look for more appropriate ways to better their situations.
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Reminds me of a Showtime documentary
Reversal of Fortune (2005 film)
http://en.wikipedia.org/wiki/Ted_Rodrigue
Homeless guy is given 100K with a note saying “What would a homeless person do if he were given $100,000?”. Then the film crew followed how he spent the money.
1 year later he was back homeless and happy.
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This is definitely an interesting article and I wouldn’t be surprised if it became a larger study at several university psych or sociology departments.
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I guess the personal finance message on this post is to set aside some of your income for giving? I give to organizations such as food shelfs and homeless shelters, especially during the holidays. I’ve been meaning to keep water and food in my car. I think the goal for all Americans should be atleast a small percentage.
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Interesting story. It amazes me how so many think those on the streets want to be there when really, a lot of them are families who have lost their jobs and homes or someone who just fell between the cracks.
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My cousin used to keep bottle water and granola bars to give to panhandlers. Then one man got aggressive with her when she gave granola instead of cash and she just stopped giving anything at all.
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My great uncle survived the great depression on handouts from people in Toronto, and I have seen a smart intelligent capable friend end up on the street after struggling with a bout of severe clinical depression. We don’t have adequate mental health support…
Most often I don’t have change ready to give, so I look them in the eye and say “sorry not today”. I mean it, when I come back I often have a pocket full of change ready, and I give until it’s gone.
I love the idea of a prepaid food store card, it at least limits what they can buy to your view of necessities.
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I seriously hate panhandlers, telemarkers, and those kids on street corners signing people up for “causes”. I’d really prefer to be left alone; it’s not as if there are no other demands on my time and money, no other people or causes closer to me personally that I would help first.
After hearing a few different variations on the sob story, I thought it would be fun to actually take care of whatever the problem is, and see if that actually solves anything – or if it’s just a story. There was a rash of incidents when I lived in LA where people would beg for gas money to get their kids home; when given a can of gas, they would POUR IT DOWN THE GUTTER and keep begging for money. I lack the means now, but maybe someday…
I’ve read a few articles profiling the local homeless which try to make them sympathetic, “real” people – but it often turns out that they’ve been offered services, transitional housing, etc. but refused because they’d have to give up booze. This bothers me.
Not to mention the whole culture of young, healthy, reasonably intelligent people, out of work because their freedom of expression includes dreadlocks and facial piercings. Better to beg than be square I guess.
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I try to keep small bags of dog food with me in the truck; around my town, I see quite a few homeless with animals as companions.
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I used to work as a secretary in a church office, and every once in a while someone would come in with a hard luck story – and most of the time, that’s exactly what it was: a story. I’ve heard them all, I think. There are resources available for those who truly need them, but most of the panhandlers are more interested in booze, cigs, drugs, etc. than in improving their situation and giving up begging.
If you really want to help the down-and-out, I think you’re better off donating money, time, and/or resources to the Salvation Army, a homeless shelter, or some similar organization. They have more experience in sorting out the sob stories from the real deal, and your donation will go towards those who can truly benefit from it, rather than towards those who are merely looking for their next buzz.
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I mean, really – if you have no place to put belongings, and likely have a drug/alcohol/mental health issue, what else would you spend it on? You can’t buy drugs on a card. Food and alcohol would be the obvious ones. And of course it’ll be fast food or a deli – who else is going to let them inside?
Not that I don’t have sympathy – mental illness and/or (self-medicating) addictions are tragic for the individual and for society as a whole.
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That’s a really interesting experiment, thanks for sharing. I went to read the full article and I find it a little sad, but at the same time, also a little uplifting, I don’t know why. I liked the article Mika posted as well. I’m actually less likely to give to someone who comes over to me and asks for spare change – I usually give to those who just put a sign up or seem to have something going on – e.g. there is a homeless guy I often see who always seems to be drawing on pieces of paper, which I think he also offers for sale. I reckon it’s because in those cases I never feel cornered, and as someone who can be a bit shy I can empathize with those who are introverted even in times of need. I have friends who don’t mind who they give to or where the money goes, but I haven’t quite reached that level of altruism yet.
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I don’t think any of them are really hard up–they always seem to have enough cash to be constantly drunk anyway.
I don’t give to beggars anymore. They aren’t really hard up–they just need cash to stay constantly drunk or high, which even if they like it is a pretty self-destructive lifestyle. I wish other people would donate elsewhere if they really want to help.
Why would anyone want to encourage people to beg and wander around drunk and wasted on the streets? Because that’s what your dollars are really supporting.
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For some reason this idea creeps me out a bit. Sort of like sticking tracking tags on the homeless.
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On a similar note, this reminded me of a documentary I saw a few years ago about the residents in Appalachia. They lived in tar paper shacks, no water, no electricity, ragged clothes. Please send us money. They all had a cigarette in one hand, and a soda pop in the other, and hadn’t seen a fresh vegetable in a decade! In some cases, it certainly is poor choices!
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I notice almost 50% of the money was spent at liquor stores. I went to a presentation by the Executive Director of the largest homeless agency in St. Louis (serves 9,000 people a year, roughly 2/3 of the homeless population). He said, “84% of the men we serve admit to being addicted to drugs and alcohol. The other 16% are liars.”
I know there is a lot of co-occurring/cause and effect stuff going on in terms of drug abuse and the homeless problem, but it really speaks to the pernicious ability of drugs and alcohol to destroy people’s lives.
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Fascinating that some, who have no money, either turned it down or spent it on wants rather than needs.
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I give to charity, and I give to a foodbank, which offers other services for people who are having financial difficulty, of which there are plenty in Michigan. But feeding into destructive behavior, not so much.
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They need to get off the streets and be a productive member of society. They are plenty of entry-level jobs around.
By giving them money, you are enabling them to keep being unproductive and a drag on society.
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I was reading the synopsis of the movie/documentary
Reversal of Fortune (2005 film)
http://en.wikipedia.org/wiki/Ted_Rodrigue
Its just so sad. If you give this homeless man $100,000, and a year later he is back homeless on the streets… why would I give even $1??
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Some panhandlers are just down on their luck, but the majority are hustlers.
This is really obvious in Washington, DC. Many of the ‘homeless’ here are resourceful, cagey folks who prefer loafing and living by their wits (and remaining mostly drunk and/or high) to working, etc. A lot of them are indeed mentally ill – depressed or whatever. But it is a CHOICE to be a panhandler. A lot of them stake out specific street corners and beg there every single day. For years. They commute to and from the suburbs, often times you see them on the metro. Panhandling is their JOB.
Not all the homeless are hustlers, of course.
There is a newspaper run by the homeless in DC, and the people who sell it are genuinely trying to better their lives – I buy it from them and chat them up, keeping up-to-date in their journeys.
The non-hustler homeless, down on their luck folks live in their cars, or sleep on the bus, and are often well groomed and holding down jobs or school while they try to get back on their feet.
(I’m not saying the hustlers have an easy life, just that they are consciously taking advantage of sympathetic folks.)
I also give to local organizations such as “So Others Might Eat” (SOME), which help homeless families and individuals obtain affordable shelter, job training, hot meals, showers, etc. And sometimes I give beggars paper cards from SOME that tell them where and when to go to get services. Mostly I just get abuse for handing out useless paper instead of cash. So I usually don’t anymore.
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I read a Seattle Times article some years back that said something to the effect that the average homeless person in Seattle makes approximately $15K a year by panhandling. Now, my boyfriend and I together live off of $20K a year, and we pay rent and car insurance, utilities, expenses that a homeless person does not have. Its possible that the research that particle article drew from is inaccurate. But even $5k-$10k a year would be a lot. I definitely believe that a considerably large amount of that money goes toward cigarettes, alcohol, and drugs.
As a note to #22, Kevin, when you are an addict, whether to tobacco, alcohol, or any form of drugs, those products are no longer wants. They are actually needs until the addiction is addressed. When it comes to drug and alcohol use amongst the homeless population, it seems like its a vicious cycle. In some cases, a former drug addiction is what resulted in homelessness. Then drug use is almost necessary to dull the pain of living on the street. As long as the person is still homeless they will still go to drugs, and as long as they are using drugs they will not be able to get out of homelessness.
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Needless to say, if drug dealers took Visa, the outcome of this experiment would have been completely different (and sadly predictable).
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What Kevin said.
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I was loading my groceries and approached by someone who needed a couple dollars to go in for food. He was in my personal space and I with my children- I don’t normally carry cash but I had taken out a five for a school function. He did a little hand bow bless you bit, oh so grateful for the $5. I felt guilty for feeling begrudged to give when he honestly needed money. I turned out of the parking lot and he was on the corner with his ‘I’m so hungry, please help’ sign.
I agree that not all are bad. I’m not wasting my time with granola bars and water.
The Salvation Army has sheltered and fed my own brother when he was a homeless addict beyond the help of family. They will forever be on my list of charities. (and he did recover!) This is a reminder that I need to DO that instead of just say it. Maybe for each homeless person I see, I should put some change in a jar when I get home.
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Interesting. Reminds me how in Pakistan, they are finding that people there are selling the donated US food for money, because they need to money more than food. And at least for people in disaster areas, money may be a more efficient donation than items that may or may not be needed.
But this may not apply in cases as already mentioned that you are dealing with drug and alcohol addictions. I honestly thought some of the outcomes would be people selling the cards for cash, to be used for drugs.
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Admittedly from the straight dope, but interesting. It appears there are some professional panhandlers, and those make much more money than the homeless.
http://www.straightdope.com/columns/read/2255/how-much-money-do-beggars-make
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When I was hugely pregnant with my daughter (who is now 16) I used to have to take the bus two hours each way to the college I was going to. A car wasn’t possible when as a single mom I had to save up for diapers and a crib AND next year’s tuition!
I used to see this same guy at my transfer point every day. And every day he would hit me up for change. And every day I would say I didn’t have any, and feel a bit bad for him.
One day I over heard him telling his friend that he had gotten a new (brand name, expensive) stereo for his apartment and the friend should come over for some beers and a listen.
I couldn’t believe it! He was making more panhandling than I was making with a child on the way!
Now that I have some disposable income I donate 10 of it to charity each month, but I never give to people on the street.
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In my younger meaner days a homeless man walked up to my car in Hazelhurst ms,an asked for money,i dug in my pocket an gave him a dime,he swung on me,i drove off,bac then you could not get out of yor car in that town without four or five people running up to you asking for money,i was sick of it.Now that i have alot money,thx.GRS,i give a dollar or two when people ask,cant never tell,i may be the one asking for money one day.
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I have worked in the Washington DC area for 25 years and used to give $ to panhandlers, but no more. Heard the same sob story too many times. The guy from WV who has his family in a car a few blocks away, they are here looking for work and they are out of gas and need money. (The guy did not remember that he accosted me and gave the same spiel two weeks before). The bicycle courier who got hit by a car and needs cab fare to go home as he shows you his damaged bike. ( Heard this story about 3 times). The mothers holding babies saying they need money for asthma medication for the child. The same guy at the Pentagon metro station who asks for money to buy a farecard on several occasions.
Some panhandlers have been aggressive like trying to block your walking path as you are trying to go into a nighclub (this happened years ago) and one partially blocked me as I tried to get off the Metro station escalator. When I silently glared at him, he taunted “Cat got your tongue?” so I said F___ you. Of course, then he went off verbally on me. One woman to whom I gave money late one night at a 7-11 in Virginia then tried to talk me into taking her and her male companion (who materialized from nowhere) somewhere in my car, which I no can do.
I work in Downtown DC in a federal office building. I could not figure out at first when I started working in this building why so many panhandlers were on our block in front of the building. Then I learned that there is a liquor store about a block away. I too also have donated money to local food kitchen, So Others May Eat (SOME). I did not know that they had cards you could hand out, but I believe that most panhandlers just want the money for alcohol, cigs or drugs.
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I kept hearing the same two stories from the “homeless” downtown in my city — they either needed money for the bus (and when you give them bus fare they go in the opposite direction of the bus station that is a block away) or coffee.
An earlier poster stated that addiction made alcohol and drugs a need rather than a want. Perhaps, I’m not going to subsidize that need.
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The day I saw a local panhandler in a grocery store buying alcohol was the day I stopped ever considering giving money to panhandlers (and I had on occasion).
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Giving money to beggars just feeds addiction and breeds laziness. Instead, your money will do a lot more good given to organizations that SERVE the homeless. That $21 meal (!) could have made 3 pots of a healthy stew and fed 50 rather than one.
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Once I saw a nervous-looking woman panhandling at an intersection, accompanied by her two small children. I gave her five dollars and she burst into tears. They were real tears, too, trust me.
I would rather make the mistake of giving to someone who doesn’t really need it rather than make the mistake of not helping someone who really does need it. Others may choose differently.
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During my poor art student days I was approached by a panhandler, I only had change and gave it all to him. He didn’t appreciate it. From that time on if someone said they were hungry or cold I’d take care of the immediate need, but I’d tell them I don’t give out money. Most people were happy for a sandwich or a cup of coffee, the ones that wanted money for other things would refuse.
I met a really young guy from the south who was asking for food in Grand Central Station. I got each of us a knish and we ended up talking for over a half hour. He really seemed to need that kind of human interaction.
Sure be wary, if someone gives you the creeps, be cautious, but as someone else said, remember you are dealing with real people.
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A police officer was enrolled in one of my Arizona State University classes when this subject came up. She advised that one not give money to panhandlers, because most of them are drug users hustling money to snort up their noses or shoot up their veins.
Here in Phoenix, one woman famously handed a bag of groceries to a panhandler standing by the road displaying a “Will work for food” sign. He threw it back at her, accompanied by a stream of invective.
While it’s true that, especially when times are as hard as they are now, many people are homeless through no fault of their own, most people who beg for money on street corners don’t plan to spend it on baby’s shoes.
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I like to give money to battered women’s shelters and school food (backpack) programs. I feel a lot better about directing my feeding the homeless dollars in those directions.
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Living in the UK has made me cynical about many “homeless” people that I meet. Let me explain what I witnessed in Oxford … I lived in Oxford for over 5 years and knew a large number of the “homeless” sellers of the Big Issue (which is a great magazine but some people use it as a crutch to support themselves instead of finding a permanent job or seeking the help they really need). Not only did I recognize them but several of them, including the one outside of my local grocery store, recognized me! Several of these individuals worked the same corners/spots for YEARS and were not really homeless but panhandled/sold the big issue as their main source of income.
Personally, I never give to charity-cases on the street, on the phone, or at my door. When I give to charity, it is on my own terms and to causes that I feel need my support.
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Maybe it’s just the cynic and former police dispatcher in me talking, but I’d *never* show anyone on a public street that I’m carrying cash on my person.
Consider this…one “homeless” person gets you to open your wallet (the Scout, if you will), then flashes a hand signal to their partner down the block. You walk on down the street proud of your generosity, only to get hit in the head at the end of the block, and your purse/wallet stolen.
My charity goes to reputable aid agencies…just way too much risk in advertising your funds on a public thoroughfare.
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