If you openly declare what you spend in charity, it is a good act. But if you keep it secret and give it to the poor in private, this is better as it indicates sincerity. Charity that is given sincerely becomes the means of sins being covered up and forgiven. Allah knows what you do and nothing from your circumstances is hidden from Him.
And whatever you spend for spendings (e.g., in Sadaqah) or whatever vow you make, be sure Allah knows it all. And for the wrongdoers there are no helpers (270)If you disclose your Sadaqat (almsgiving), it is well; but if you conceal them and give them to the poor, that is better for you. (Allah) will expiate you some of your sins. And Allah is Well-Acquainted with what you do (271)
Allah states that He has perfect knowledge of the good deeds performed by all of His creation, such as charity and various vows, and He rewards tremendously for these deeds, provided they are performed seeking His Face and His promise. Allah also warns those who do not work in his obedience, but instead disobey His command, reject His revelation and worship others besides Him:
وَمَا لِلظَّالِمِينَ مِنْ أَنصَارٍ
(And for the wrongdoers there are no helpers.) meaning, who will save them from Allah's anger and torment on the Day of Resurrection.
The Virtue of Disclosing or Concealing Charity
Allah said,
إِن تُبْدُوا الصَّدَقَاتِ فَنِعِمَّا هِيَ
(If you disclose your Sadaqat, it is well) meaning, "It is well if you make known the charity that you give away."
Allah's statement,
وَإِن تُخْفُوهَا وَتُؤْتُوهَا الْفُقَرَاءَ فَهُوَ خَيْرٌ لَّكُمْ
(But if you conceal them and give them to the poor, that is better for you.) this indicates that concealing charity is better than disclosing it, because it protects one from showing off and boasting. However, if there is an apparent wisdom behind disclosing the charity, such as the people imitating this righteous act, then disclosing it becomes better than concealing it. The Messenger of Allah ﷺ said,
الْجَاهِرُ بِالْقُرْآنِ كَالْجَاهِرِ بِالصَّدَقَةِ، وَالْمُسِرُّ بِالْقُرآنِ كَالْمُسِرِّ بِالصَّدَقَةِ
(He who utters aloud Qur'anic recitation is just like he who discloses charity acts. He who conceals Qur'anic recitation is just like he who conceals charity acts.)
The Ayah indicates that it is better that acts of charity be concealed, as reiterated by the Hadith that the Two Sahihs recorded from Abu Hurayrah that the Messenger of Allah ﷺ said,
سَبْعَةٌ يُظِلُّهُمُ اللهُ فِي ظِلِّهِ يَوْمَ لَا ظِلَّ إلَّا ظِلُّهُ: إِمَامٌ عَادِلٌ، وَشَابٌّ نَشَأَ فِي عِبَادَةِ اللهِ، وَرَجُلَانِ تَحَابَّا فِي اللهِ، اجْتَمَعَا عَلَيْهِ وَتَفَرَّقَا عَلَيْهِ، وَرَجُلٌ قَلْبُهُ مُعَلَّقٌ بِالْمَسْجِدِ، إِذَا خَرَجَ مِنْهُ حَتَّى يَرْجِعَ إِلَيْهِ، وَرَجُلٌ ذَكَرَ اللهَ خَالِيًا فَفَاضَتْ عَيْنَاهُ، وَرَجُلٌ دَعَتْهُ امْرَأَةٌ ذَاتُ مَنْصِبٍ وَجَمَالٍ، فَقَالَ: إِنِّي أَخَافُ اللهَ رَبَّ الْعَالَمِينَ، وَرَجُلٌ تَصَدَّقَ بِصَدَقَةٍ فَأَخْفَاهَا، حَتَّى لَا تَعْلَمَ شِمَالُهُ مَا تُنْفِقُ يَمِينُهُ
(Allah will give shade to seven on the Day when there will be no shade but His. (They are:) a just ruler, a youth who has been brought up in the worship of Allah, two persons who love each other only for Allah's sake who meet and part in Allah's cause only, a man whose heart is attached to the Masjids from the time he departs the Masjid until he returns to it, a person who remembers Allah in seclusion and his eyes are then flooded with tears, a man who refuses the call of a charming woman of noble birth for illicit intercourse with her and says, 'I fear Allah, Lord of the worlds', and a man who gives charitable gifts so secretly that his left hand does not know what his right hand has given.)
Allah's statement,
وَيُكَفِّرُ عَنكُم مِّن سَيِّئَاتِكُمْ
((Allah) will expiate you some of your sins) means, in return for giving away charity, especially if it was concealed. Therefore, you will gain goodness by your rank being raised, and your sins being forgiven.
Allah's statement,
وَاللَّهُ بِمَا تَعْمَلُونَ خَبِيرٌ
(And Allah is Well-Acquainted with what you do) means, "No good deed that you perform escapes His knowledge, and He shall reward for it."
(5) Verse 271: إِن تُبْدُوا الصَّدَقَاتِ فَنِعِمَّا هِيَ (الی قولہ) وَاللَّـهُ بِمَا تَعْمَلُونَ خَبِير : "If you give the alms openly, it is good enough, ... and Allah is All-Aware of what you do"
Obviously, this verse covers all types of charity, whether obligatory or supererogatory, and it is more preferable to perform all of them as secretly as possible. To observe secrecy in a charitable act has religious merits, because it is far from the possibility of riya' ریاء (show off), and more graceful for the receiver who can feel shy about receiving charity in public. It is also beneficial from an earthly point of view, because it does not disclose the amount of wealth one owns.
It should, however, be kept in mind that the preferability of observing secrecy is a matter of principle. There may be situations where it becomes more preferable to perform an act of charity openly for some external reasons, such as removing some accusation (of not paying زکاۃ Zakah, for instance) or to persuade others to follow the example. Such exceptional cases do not negate the basic principle in any way.
Immediately after the instruction of concealing the 'Sadaqat صداقات ', the holy verse says, وَيُكَفِّرُ عَنكُم مِّن سَيِّئَاتِكُمْ (This will write off part of your sins). It does not mean that the expiation of evil-deeds is confined to the charity made in secret only. In fact, a charity made in public also carries the same benefit. But the reference to expiation here is in the context that even if someone feels a secret charity as useless in this world, he should not feel depressed, because Allah will forgive his sins, and that is a great gain for him.
One who spends his money for the sake of God in the way that He has commanded him to do, proves that he has been blessed with wisdom. Wisdom here means knowledge and understanding of the Quran. The biggest folly is to be so enamoured of one’s wealth that one fails to spend for the cause of God, and the greatest wisdom lies in recognizing that monetary interests do not present any obstacle to one’s engaging oneself in God’s work. One should consider God’s cause as one’s own. One who lives within the cocoon of personal interests and considerations cannot possess the insight which would enable him to see higher realities and experience higher states of consciousness. On the contrary, one who goes ahead towards God by ignoring all personal considerations raises himself above all limitations. His consciousness reaches the divine level of God, who is independent (free from all wants), praiseworthy, all-sufficient, and wise. Man is thus enabled to see things as they are. For he goes beyond the limitations which serve as obstacles to seeing things in their true form. However true any argument may be, its truth dawns upon one only when one can see it with an open mind.