Realize that the homeless are not all the same. From alcoholics and drug addicts to the mentally ill. From street-smart con artists to scared young people who are on the street for the first time. The response that's right for one person may not help another. Encourage them to get help.
Help is available.
Steer homeless people toward a local rescue mission where there's food, shelter, and other help. Learn about the homeless and their problems. You'll equip yourself to be part of the solution, not just an observer. Your money, talents, and time can go a long way toward transforming people's lives.