Police are seizing coins and cash from beggars in Melbourne's CBD as proceeds of crime, according to reports from homeless people and welfare workers.

Youth Projects say they have had up to eight cases in the past year of police confiscating the "meagre proceeds" of the homeless after they were charged with the offence of begging alms.

Police check a beggar's bowl in Melbourne on Wednesday. Credit:Joe Armao

The welfare group's chair, Melanie Raymond, said in one case, on Christmas Eve, a man was forced to put his takings in a charity box.

"We think begging should be decriminalised because it's penalising people for being poor and hungry," Ms Raymond said.