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Who's making fun of homeless. It's some guy that has a funny sign. He obviously meant for it to be funny. To not laugh is to say the homeless cant' be funny. You're showing him a greater respect by laughing at his sense of humor the same as you would a non-domicile impaired individual.
One night while my band was leaving a gig in the village, this guy came up to us and asked for change. Anyone who's been to lower Manhattan will tell you; you can't walk a block without being hit up for change 50 times. Literally, several times a night. Being an outsider, we felt bad, and kept giving a buck here 50 cents there. Finally my guitarist said "I'll tell you what. You work for it and you can have it." The homeless guy said "What do you want me to do?" Jim replied, "I don't know, tell me a couple of jokes or something."
I honestly don't remember the jokes he told, but we were genuinely laughing our asses off.
We each gave the guy 2 bucks.
In retrospect, I wish there had been a couple of homeless guys outside the bar that night. We could have given them each like $10 bucks to load our gear on the van