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How are we to discern true need from fraud?

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I am suspicious by nature due to my upbringing. I remember as a child how my now deceased father (a military veteran and police officer) never gave money to people who approached us on the street. It is ingrained in my nature to always be suspicious of those asking for money, be it the man holding a sign on the center median or the lady claiming to be collecting funds for the homeless as she stands at the exit to the grocery store. Just as my father did, I regularly give to legitimate charities through my parish or on my own. I've also bought sandwiches for people who approach me on the street and tell me they're hungry. I just have a problem giving money to people who are holding a sign on the street corner, or those who have a child with them when they approach me asking for money. I am suspicious of their intent and cannot get rid of the idea that they are just taking advantage of people's generosity so they can perpetrate fraud. I feel that those who have a child with them when they are asking for money are just using the child as a prop in an effort to appeal to the emotions of the generous. Am I wrong in this mentality? Is it sinful? What do you all do in these situations?

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