In the Name of Allah, the All-Merciful, the Mercy-Giving

All praise is due to Allah. Peace and blessings be upon His Messenger Muhammad.

It is not permissible to give charity to one who is able to work or is rich. This is based on the report of Qabīṣah b. Al-Mukhāriq Qabisah bin Mukhariq Al-Hilali who narrated that the Messenger of Allah (peace be upon him) said: “Asking for (the money of) Zakah, is justified only for the following three: first, a man who is in debt: it is then permissible for him to receive [Zakah] until his difficulty is resolved; second, a man who was struck by calamity, which destroyed his holdings, which also makes it permissible for him to receive [Zakah] until he is in a position to earn his own living; and third, a man who has been reduced to poverty and three persons of caliber from among his people testify to his desperate circumstances.

Such will receive until he finds a means of support for himself. Other than these cases, O Qabisah, it is considered as taking suht (unlawful or haram earnings), and the person receiving it (this Zakah) will be consuming forbidden (unlawful) holdings.” Related by Muslim, Abu Dawud, Ibn Khuzaimah and Ibn Hibban.

Based on this hadith, these are the only cases where one can ask for help. Otherwise, it is prohibited.

For the case of street baggers, it has been proved that most of the are professional in soliciting help and manipulating people. The majority of them are rich. You need to exert your effort in guessing whether such a person is true or not. In case you make sure he/she is in need for help you can give him/her. If it is later proved that he is rich, your still have the reward.

Abu Hurairah (may Allah be pleased with him) said: The Messenger of Allah (peace be upon him) said: “A man (from amongst the people before you) said: ‘Indeed! I will give in charity.’ So he took his Sadaqah out and placed it in a thief’s hand.

In the morning the people were talking (about this incident) and saying: ‘Sadaqah was given to a thief last night.’ The man said: ‘O Allah! Praise be to You. I have given Sadaqah to a thief. Indeed, I will give in charity!’ So he took his Sadaqah out and he placed it in a prostitute’s hand.

In the morning the people were talking (about this incident) and saying: ‘Sadaqah was given to a prostitute last night.’ On hearing this, the man said: ‘Praise be to You, O Allah! I gave Sadaqah to a prostitute. Indeed, I will give in charity!’ So he took his Sadaqah out and placed it in a rich man’s hand. In the morning the people were talking (about this incident) and saying: ‘Sadaqah was given to a rich man last night.’ The man said: ‘O Allah! Praise be to You (for helping me) give charity to a thief, a prostitute and a rich man.’ Then he had a dream in which he was told that his Sadaqah to the thief might result in his refraining from his theft, his Sadaqah to the prostitute might help her abstain from her immorality, and his Sadaqah to the rich man might help him pay heed and spend from what Allah had bestowed upon him.” (Al-Bukhari)

Almighty Allah knows best.