Tokens are sold to people for $2.50 each and then when people give them to homeless or other people, the tokens can be used at participating vendors for $2.20 (30 cents goes to the nonprofit operating organization). The vendor then redeems the tokens for cash. https://breadcoin.org/how-it-works/ And a picture of token https://breadcoin.org/
I think if a person is truly hungry and asking for money (not cigarettes, alcohol or other substances) and you can easily tell that if you give them cash they wont misuse the funds, they should be given cash. Because giving them cash gives them a little bit of dignity to be able to buy food like a human being that has feelings.
These tokens seem to say "hey, your poor. I dont trust you will buy food with my money. Here's a token that's redeemable for a muffin. "