All the evidence shows that the money is used only to fuel their issues. If someone truly panhandled for food they would not go hungry. This is actually a well researched subject....Those who have been truly "down and out" at least once in their lives and hungry enough over a number of days to cause intense pain have a different perspective regarding panhandling (that is quickly noticeable) from those who haven't.
...and it's not necessarily favorable toward a panhandler.![]()
Few years ago right here in Portland, an economics grad student did a study to find out just how much street beggers made.
He averaged $11.10/hr.
His worst day was $5.13/hr. Thats $205.2/week for food.
Side note, i think its safe to say panhandling wages are tax free.

