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I seem to remember reading that one doesn't challenge someone ready to humiliate himself to ask for tzedakah, but I can't find the source.

The closest I am getting is the Rambam (MT Matnot Aniyim 7:6)

When a poor person whose identity is unknown says: "I am hungry, provide me with food," we do not investigate whether he is a deceiver. Instead, we provide him with sustenance immediately.

but that only applies to food since there is urgency.

and 7:7

It is forbidden to turn away a poor person who asks [for charity] empty-handed.

Does the idea that one doesn't challenge someone if he is ready to humiliate himself by begging exist as a formal halacha? What is its source?

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    A similar idea about not challenging (investigating) a beggar exposed to humiliation is the opinion of Rav Huna (BB 9a), though the halachah follows Rav Yehudah (the source for Ramabam). – Oliver Jan 4 at 13:58
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    On Purim, כל הפושט יד נותנים לו. – Ploni Jan 4 at 15:33

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