Lending money so someone can make the rent payment, or cover other essential expenses is the very definition of helping someone in need. But lending someone money to buy a nice new car? Or buy a bigger house than they could afford on their own? That seems to cross the line into lending money to help with a want, not a need.
Got a friend or relative who repeatedly has come to you for help? That might be a sign of someone who needs an intervention to take control of overspending, or too heavy a debt load. The National Foundation for Credit Counseling is a nonprofit organization that can connect you with debt counseling organizations.