The most common and most likely answer to this crossword clue is the 7 letter word HANDOUT
I've seen this crossword clue in The Daily Telegraph
H
A
N
D
O
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T
More clues leading to the result HANDOUT
- Charity gets together with love in shack
- Chinese scepticism reported by charity
- Charity worker dismissed
- Gift for the poor — a welcome gesture
- A new party shed clothes charity
- Charity worker on strike
- Somewhat foolish and outrageous leaflet
- Leaflet from worker on strike
- Worker, dismissed, gets some charity
- Paper distributed as a gift to the needy
Buddy explains!

The straight part
We know that "Paper distributed/a gift to the needy" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case paper distributed/a gift to the needy = handout.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does HANDOUT mean?
HANDOUT noun- A worksheet, leaflet, or pamphlet that is given out (usually by hand) for a certain use.
- A gift to the poor or needy.
- A gift, something obtained without effort.