Such regulations represent a prime example of the “unseen costs” of government action.
When those that want charity to handle issues relating to the poor and homeless more so than they want government and taxes to handle it, the excuse given to explain why this won't work is often that there are not enough people willing to give. I'm not so sure this is true. The fact of the matter is that the government makes int incredibly difficult for charities to operate in many cases. Here is a case in point.
I get that charity is less predictable. But shouldn't we at least be encouraging charity in order to reduce the burden on taxpayers vs. discouraging charity? Governments are generally stupid and California leads the way. Unfortunately, most other states and the Federal government tend to ultimately follow their example.