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Since the Bible warns (Proverbs 22:26) against becoming liable for the debts of another person (even including, presumably, someone whom you would know and trust), I would say that giving money to a person who you have reason to believe would waste it or use it for immoral purposes would be even more inadvisable. As Christians, we are called on to be generous to those who are truly in need (Matthew 5:42; Luke 6:34), but we are also told to be not only as innocent as doves, but also as wise as serpents (Matthew 10:16), and to be faithful stewards of the resources that God has entrusted to us (Matthew 25:14-30). The exercise of discretion in the distribution of those resources is an integral part of our stewardship.
I agree with Tim and would also like to add that giving money or other resource to someone that most probably would be using it for the wrong purpose could be considered sinful in that you would be contributing to the wrongdoing by enabling the individual.
Matt 7:6 says don't cast your pearls to the swine. When you know your money that you give someone might be use for wrong just don't do it. You go and buy, pay for whatever they want or need. It's always a blessing to give but not foolish giving.
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