Narrated Ibn ‘Umar (radiallahu `anhu):
I heard Allah’s Apostle (sallallahu `alayhi wasallam) while he was on the pulpit speaking about charity, to abstain from asking others for some financial help and about begging others, saying, “The upper hand is better than the lower hand. The upper hand is that of the giver and the lower (hand) is that of the beggar.”
It is not permissible for anyone to ask people for money when he is not in need or he is able to earn a living. There are certain categories for whom it is permissible to ask of people. They are: the poor person who is destitute, the man who owes a debt, and the one who has been stricken by financial calamity and lost all his wealth. In these cases it is not permissible to ask for more than one needs, on condition that he does not have enough to meet his needs and is not able to earn enough for his livelihood.
The scholars of the Standing Committee said:
It is permissible to ask for people for money, for the one who is in need and does not have enough to suffice him and he is not able to earn a living. He may ask people for as much as will meet his needs only. As for the one who is not in need, or the one who is in need but is able to earn a living, it is not permissible for him to ask and whatever he takes from people in this case is haraam for him, because of the hadeeth of Qabeesah ibn Mukhaariq al-Hilaali (may Allah be pleased with him) who said: It was narrated that Qabeesah ibn Mukhaariq al-Hilaali said: I incurred a debt (in order to reconcile between two parties) and I came to the Messenger of Allaah (blessings and peace of Allah be upon him) to ask him (for help) with it. He said: “Stay with us until the zakaah comes, and we will order that something be given to you.” Then he said: “O Qabeesah, asking for help is not permissible except in one of three cases: a man who has incurred a debt (in order to reconcile between two parties), for whom it is permissible to ask for help until he has paid it off, then he should refrain; a man who has been stricken by a calamity that has destroyed all his wealth, for whom it is permissible to ask for help until he gets enough to get by – or he gets enough to meet his basic needs; and a man who is stricken by poverty and three men of wisdom among his people acknowledge that So and so has been stricken by poverty, then it becomes permissible for him to ask for help until he gets enough to get by – or to meet his basic needs. Apart from these cases asking for help, O Qabeesah, is haraam and the one who begs is consuming something haraam.” Narrated by Ahmad, Muslim, an-Nasaa’i and Abu Dawood.
And (it is haraam) because of the hadeeth, “Whoever asks of people to accumulate wealth is asking for a live coal” and the hadeeth “Charity is not permissible for a rich person, or for one who is strong and healthy.”
Narrated by the five apart from an-Nasaa’i
So what you should do is advise him, and the scholars should explain this to the people in their Friday khutbahs and otherwise, and in the media.
Repulsing or chiding the beggar is also not allowed because Allah, may He be exalted, says (interpretation of the meaning): “and do not chide the one who asks for help” [ad-Duha 93:10]. What is referred to here is rebuking him and raising one’s voice against him; this includes both the one who asks for money and the one who asks about shar‘i rulings. But this does not rule out offering guidance to the beggar who is asking wrongfully, and advising him with wisdom and beautiful preaching.
Shaykh ‘Abd al-‘Azeez ibn Baaz, Shaykh ‘Abdullah ibn Ghadyaan, Shaykh Saalih al-Fawzaan, Shaykh ‘Abd al-‘Azeez Aal ash-Shaykh, Shaykh Bakr Abu Zayd
Fataawa al-Lajnah ad-Daa’imah, 24/377
Shaykh ‘Abd al-‘Azeez ibn Baaz (may Allah have mercy on him) was asked:
What is the Islamic ruling on begging?
He quoted the hadeeth of Qabeesah that we quoted above, then he said,
In this hadeeth the Prophet (blessings and peace of Allah be upon him) described the permissible kinds of asking; anything other that is haraam. If a person has enough to meet his needs whether it is from the salary of a job, or from trade, or income from some property set aside as a waqf for his benefit by a relative, or real estate, or earnings from a craft such as carpentry or blacksmithing, or from farming and the like, it is haraam for him to beg. But if a person is compelled to do that, there is nothing wrong with him asking for as much as he needs. The same applies to one who incurs a debt in order to reconcile between people, or to spend on his family and children. There is nothing wrong with him asking for help to pay off this debt.
Majmoo‘ Fataawa Ibn Baaz, 14/320
[Taken from IslamQA]