Firstly: The Pauper and the Destitute as an Avenue of Charity
The pauper and the destitute is one of the eight valid avenues of expenditure for charity. Consensus has been quoted on this generally: Ibn al-Mundhir, Ibn Hazm, and Ibn al-`Arabi.
Secondly: The Distinction between the Pauper and the Destitute
The poor and the destitute are two distinct categories. This is by agreement of the four schools of jurisprudence, and it is the position of the Zahiris.
Thirdly: The One of More Need
The pauper is in more need than the destitute. This is the position of the Shafi`is,  The pauper according to the Shafi`is is he who has no wealth nor income to fulfil his needs, as for the destitute then it is he who has some wealth or income that fulfils a little of his needs. Hanbalis,  The pauper according to the Hanbalis is he who has absolutely nothing, or has a little bit that is still less than half of what he needs. The destitute is he who has most of what is sufficient, or at least half of it. a position among Malikis, and the choice of Ibn Hazm, Ibn Baz, and Ibn `Uthaymin.
Fourthly: The Period of Time that is Given to Suffice the Pauper and the Destitute
The pauper or the destitute is given what suffices him for a year.  Craftsmen are given what enhances their craft, like machinery or raw material, regardless of the price, until what a craftsman owns becomes sufficient for his needs. This differs based on the land, time, and craft. This is the position of the Malikis, Hanbalis, a position among Shafi`is, chosen by Abu `Ubayd al-Qasim ibn Sallam, Ibn Baz, and Ibn `Uthaymin.
Fifthly: Not Owning a Nisab as a Condition
It is not a condition that the pauper or destitute not own a nisab. This is the position of the majority: Malikis, Shafi`is, Hanbalis, and Ibn Hazm.
Sixthly: The Ruling of Giving Charity to the Transgressing Pauper
It is permissible to give charity to the transgressing pauper.  It should not be the case that the transgressing pauper is given wealth which he then uses for sinning, like tools he will use for haram, or drugs etc. Then, it would be aiding him to do evil. If it is known or most likely the case that a transgressing pauper will use the wealth given to him to sin, then it is haram to give it to him. This is explicitly mentioned by the jurists of the Malikis and Shafi`is, and it is the chosen position of Ibn `Uthaymin.