OP is not talking about fungibility, but accountability. Web3 technology can provide transparency to see and verify that money is allocated in all the ways the entity said it would.
There is some truth to this:
"According to the Substance Abuse and Mental Health Services Administration, 20 to 25% of the homeless population in the United States suffers from some form of severe mental illness."[1]
Mental disorders prevent people from carrying out essential aspects of daily life, such as self-care, household management and interpersonal relationships. Homeless people with mental disorders remain homeless for longer and have less contact with family and friends. Any type of help from friends and family can be misinterpreted and further pushed towards the cycle of poverty.