Lupton is not discouraging giving. Instead, he is encouraging people to think carefully about where they give to ensure wise stewardship. Lupton also suggests human needs organizations need to look for an investment from their recipients rather than providing goods and services at no charge.
One suggestion to move away from freebies is to have a small investment from the recipient. For example, one organization mentioned in the book offers $30 worth of food for $3. The recipients have an active role in how the co-op is run and end up self-policing because they are invested. It also provides benefits to their self esteem because they are able to contribute to the cost of feeding their family.
For anyone who gives money to charity - and especially to human needs organization - this will make you more thoughtful about your giving. As for me, I'll continue giving to human needs groups, but will probably pay more attention to how their programs are run.