Chapter on Gifts and Donations
Shaykh al-Islām—may Allah have mercy on him—was asked:
Which is better: charity or a gift?
He replied:
Praise be to Allah. “Charity” is what is given for Allah’s sake as a pure act of worship, without any particular regard for a specific individual or seeking anything from him. Rather, it is directed to appropriate recipients of charity, such as those in need.
A “gift,” however, is intended to honor a particular person, whether out of love, friendship, or a desire to have a need fulfilled. For this reason, the Prophet, may Allah bless him and grant him peace, would accept gifts and reciprocate them, so that no one would have a favor to hold over him. He would not consume the impurities people shed to cleanse themselves of their sins—namely, charitable offerings. For this and other reasons, he would not partake of charity.
Once this distinction is clear, charity is better, unless a gift serves a purpose that makes it better than charity. Examples include giving a gift to the Messenger of Allah, may Allah bless him and grant him peace, during his lifetime out of love for him; giving a gift to a relative to maintain ties of kinship; and giving to a brother for Allah’s sake. Such giving may be better than charity.