This is why Zakat is so very important, we distribute it ourselves so we can see the help we give.
I think Muslims on the whole do give a lot to charities, possibly our charities arent such prolific propaganda machines tho, we give charity in secret and quietly, I'd rather that then humiliate a poor person further by advertising my own wonderfulness at giving in charity!!!!!
This article is nothing more than bribing people to change their faith, and the people in question are obviously, and very sadly, not versed in their faith and therefore easily swayed.
On the other hand, having never suffered extreme poverty I am not sure how I would react in the given situation, food and shelter are the very basic necessities we all should have.