It often refers to government welfare or a charitable gift, and it may take the form of money, food, or other necessities.
During the Great Depression, many people lived entirely on handouts of one kind or another when they could not afford to buy food.
The term became especially popular among hobos, who developed a system of signs and symbols to describe the nature, quantity, and availability of handouts.
[citation needed] "Give a hand up, not a handout" is a common remark among of workfare or other welfare-to-work systems.
The biography of Star Parker (disclosed in detail in her books) is of a person who has lived on both sides of the dichotomy.