And fixing his eyes on him, with John, Peter said, "Look at us." So he gave them his attention, expecting to receive something from them. Then Peter said, "Silver and gold I do not have, but what I do have I give you: In the name of Jesus Christ of Nazareth, rise up and walk."
Acts 3:4-6

Some thoughts about handing out tracts:

Make sure you have tracts readily available in your purse or pocket.

Make sure they contain the gospel (anything from “Living Waters” http://store.livingwaters.com/gospel-tracts.html), or those we will put in the bulletins from time to time).

Stop and ask, “Did you get one of these yet?”—holding it out for the person to take.

If the person takes it, encourage him or her to read it before the day is over.

If the person does not take it—or even if he or she is rude to you: Don’t take offense or become defensive. People are not rejecting us, but our Lord. Say, “Thanks for your time. I’ll pray for you. Have a great day.” (Then don’t neglect to pray!) Leave the person in a way that he or she will remember that a Christian was nice and smiled at him or her.

If the person asks, “What is it?” answer, “The best news in the world.” If he or she wants to talk more, and if you can, talk to the person.

If you end up talking: do not get side tracked on unimportant side issues (politics, science, or other debatable issues); stick with the Christ and gospel.

Pray for opportunities and that God will use you. He will!

An important footnote: Never leave a tract instead of a tip! ;-)