The Beggar is an NPC randomly encountered during exploration. When encountered, the player can choose to give her coins or to scare her. You may also explore thus avoiding losing money or any other outcome.
When the option Scare is chosen, the Beggar will run off, possibly leaving coins behind for the player. There is also a chance that the Beggar will play a trick on you and steal some of your coins.
If the player chooses to give her money, she will either give him nothing, energy, or an item. The reward for giving her coins is based on the store price of health potions at a player's current level. To receive energy, a player must throw in an amount of coins equal to at least 1000 more than half the price of a health potion but no more than the price of a health potion.
To receive an item, a player must throwup in an amount of coins equal to at least one more than four times the price of a health potion in the store.
Note: the item will always be 7 lvls below you, and the item caps at a lvl 66 item.