Is there any evidence of this? I see this argument used a lot to dissuade from the "handouts" thing and for not helping people. Don't non-profits technically receive handouts? Aren't grants technically handouts?

A handout, as I understand it, is money given that isn't meant to be paid back. I think a good portion of handouts already exist, it's just easier to justify not giving handouts to people that are societally (or personally) perceived as inferior because it's easy to not empathize with their situation.