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However, is there such benefit in knowingly giving to thieves, prostitutes, rich people, etc.?
There is a whole INDUSTRY of fake homeless people. I am not just making this up. Do a simple Google Search.
See: https://www.youtube.com/watch?v=LSewCBL4_GQ
Anyway, it is scientifically proven that over 80% of money given to real homeless people is spent on alcohol and drugs.
The hadith above isn't wrong, just your interpretation.
I know this in my heart, but if you can't see it that's fine. It is your loss, not mine.
I think it depends on intentions.
I may very well give money / donate money to a thief, prostitute or even rich people. It can serve as a dawah.
For the prostitute, you may save her from prostitution. For the rich, you may make him/her reflect, and rethink about what he uses his/her money for.
For the thief, it might make him stop stealing, or rethink.
And yes, there is benefit in giving to prostitutes, and rich people. Idk about thieves, but they may feel guilt, or by your dawah they may turn to Islam, and become Muslims. So with the prostitute and the rich.
I doubt the prostitute does prostitution because she likes it, and I find rich people chained by their money/not knowing what to do with it.
Thieves may be poor people who have despaired, or have not reflected. Dawah by giving him money, KNOWING he is a thief, may be excellent dawah.
So giving them money may stop them from their ways. In shaa' Allah.
It all depends on intentions.
Allahu alam.
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