This is just a difficult situation all of the way around.
The homeless shelters are there to help people, but if the homeless do not want to go to the shelter, then you can't force them to do that, either. My husband worked at many homeless shelters, and when he was working at the Seattle Mission, they would go out and take soup, sandwiches, and sleeping bags when the weather was cold.
If the homeless wanted to go to the mission for the night, they were taken there, and if they refused, then they gave them the food and sleeping bag to at least make the situation as good as possible for these people.
I can see that it can't be allowed to just let people be fed on public property maybe, but if these people are associated with a church, then it should be fine to feed the people on church property, or another privately owned place.
The Seventh Day Adventists have a small food bank here, and they were also making a mid-day meal which was served at the place where the food bank is.
I don't know if they had to get a health inspection like a restaurant does, but if these people truly want to feed homeless people, then these are certainly doable things that they should consider.
Many other organizations are able to help care for homeless people and feed them; they just have to follow the laws to do it.
I usually do not give money to these people when I see them standing around asking for cash. I have offered to take them to the local shelter (which they always refuse), and I have also gone to the closest fast food place, and come back with sandwiches when I was able to do that.
That way, at least I have offered to help, and not just give them money to spend on drugs; I know it goes for a meal for them.