Peaceable Projects Inc. is a U.S.-based non-profit group that brings the vast resources of the wide world together with the ongoing needs of the people who live, work, and travel on the Camino de Santiago pilgrim trail network in Spain.
I had a similar experience in Leon in September 2007. I bought him a cheap phone card, which to his credit he actually tried to give back to me, but he wanted bus fair to some other city, I didn't give it to him as it was more than my daily budget. Felt bad for the guy, seemed sorta' sad and lost. I don't know if it was same guy, but not sure if he was a pilgrim. I think I might have given him some money for food, too. Oh well, I don't like to be hungry.
Giving to the less fortunate is a very Christian and proper thing to do for everyone.
Here's a suggestion on how to safely do it...if you believe you must.
Keep a euro or two in an easily accessible outer pocket...I use a small baggie so it won't jungle. This reduces the amount of money someone can get in a classic "snatch and run'. Never, ever take out your money pouch and dig around...bad juju.