This is the kind of thing that needs an institution (government or not) because otherwise the money goes to the most convincingly miserable looking people, not the ones in need. It's hard to prove, but it seems like most of the "homeless" on the NYC subway are just doing an act like the rest of the buskers. There's money to be had, and they've made a job of figuring out how to get it. If you can be sure that the problem is competently handled by the government, you can ignore people asking for handouts and not encourage that behavior.

I'm not just advocating for everyone to give money away on the street. Some of the worst poverty in the U.S. is in places with huge amounts of brain power (like SF). I'm sure those big brains could come up with better solutions than handouts. Like the countless charities out there that are far more efficient than government.

Do you think the problem is, or can be, competently handled by government? I think government can get results by brute-forcing with massive amounts of money, but history shows that it's still terrible at it (hello War on Poverty). Now, I don't mean to say government should have no role/do nothing. I'm saying that it should not be the -default- entity to take care of things because it allows the citizenry to absolve themselves of all responsibility. Government isn't some wise entity - it's just people. And oftentimes those people are thousands of miles away, working with incentive structures poorly aligned with the issue at hand.

One benefit of transforming this issue into a matter of personal responsibility is that the incentives are much stronger - if it's MY money being used, I'm far more likely to strive for efficiency. If your charity gobbles up my donation with admin costs, I'm "shopping elsewhere". A somewhat-related example of this strategy was a method used in Africa to combat elephant poaching. I can't find the reference now, but basically the government decided to "give" land areas to citizens, who would be responsible for poaching issues. It ended up working much better than when the government sought to directly reduce poaching.