I don't know about the homeless people in your area but in my area, the majority are a bunch of annoying alcoholics or junkies. They swarm the local liquor store and beg you for change when you come out. I never give money to panhandlers since most of them will just use it for drugs and booze. I saw a guy panhandling at a train station. A woman brought him a bagel and he refused it.

The dayworkers idea is a great one as it'll actually help the ones who need and want the help. I don't like the other idea. It's too bureaucratic and the money can end up in the wrong hands. Even if it ends up in the right ones, you still need to wait years for new services and funding for said services to appear.