The Almighty continues with the issue spending in the way of Allah (swt) and good deeds which are part and parcel of the religion. 

“Charity is proof[1]”

 of the soundness of faith. The wealth you have is the Almighty’s who has given it to you. Anyway, spending Allah’s money on his creatures proves the soundness of your faith and abidance to Allah’s orders.

(… إِن تُبْدُوا الصَّدَقَاتِ فَنِعِمَّا هِيَ ) (If you disclose your charitable expenditures, they are good …): As far as charities are concerned, there are two manners of spending:(1) either to disclose the charity, or (2) to conceal it.

You do good when you disclose charities; why? Because when a rich person discloses charity with good intention, particularly in the case of the obligatory Zakat, he protects the society and himself and become a model to be followed in terms of obeying Allah’s obligations. As such, clerics argue that when a rich man does a charity he must disclose it; while an average person is better to hide it. This is due to the fact that people will talk about the behavior of the rich man and say: ‘he has money, properties and palaces… but he doesn’t spend a penny.’ So, it’s about social solidarity and human feelings. You realize it when you disclose the charity, and prevent hatred and envy to infiltrate into the hearts of the poor. In all, to disclose a charity is better in such case. However, Allah (swt) says after that immediately:

(… وَإِن تُخْفُوهَا وَتُؤْتُوهَا الْفُقَرَاءَ فَهُوَ خَيْرٌ لَّكُمْ …) (…but if you conceal them and give them to the poor, it is better for you …): When the Holy Quran talks about charities and Zakat, it calls them charity because it is a matter of proving one’s faith:

 إِنَّمَا الصَّدَقَاتُ لِلْفُقَرَاءِ وَالْمَسَاكِينِ وَالْعَامِلِينَ عَلَيْهَا وَالْمُؤَلَّفَةِ قُلُوبُهُمْ وَفِي الرِّقَابِ وَالْغَارِمِينَ وَفِي سَبِيلِ اللَّهِ وَابْنِ السَّبِيلِ ۖ فَرِيضَةً مِّنَ اللَّهِ ۗ وَاللَّهُ عَلِيمٌ حَكِيمٌ

(Zakah expenditures are only for the poor and for the needy and for those employed to collect [zakah] and for bringing hearts together [for Islam] and for freeing captives [or slaves] and for those in debt and for the cause of Allah and for the [stranded] traveler – an obligation [imposed] by Allah. And Allah is Knowing and Wise..) (At-Tawba: 60)

This verse is related to Zakat, not charity; the former is obligatory, while the latter is a Sunnah by Prophet Muhammad (saws). Therefore, if you disclose the charity (i.e. Zakat), it’s a good thing you do. On the other hand, if you conceal (charities) and give them to the poor, it is better for you so that hypocrisy never infiltrate to the hearts of the rich. In this context, the Prophet (saws) mentions among the seven types of people who will be shaded under the shade of the Almighty on the day when will be no shade except His:

“and a man who gives charity so secretly that his left-hand doesn’t know what his right hand has given[2].”

(… وَإِن تُخْفُوهَا وَتُؤْتُوهَا الْفُقَرَاءَ …) (…but if you conceal them and give them to the poor …): It states that charities, Zakat in particular, can be disclosed because this is about honoring Allah’s rituals.

(… فَهُوَ خَيْرٌ لَّكُمْ …) (…it is better for you …): As for charities (other than Zakat), it’s better to conceal them. On the other hand, Allah (swt) orders humans to work as hard as they can, not as much as they need, or else, no Zakat would have been there. This means that you work for yourself and for others; you work to meet the needs of the poor and the helpless. Therefore, Allah (swt) says about Zakat:

 {قَدْ أَفْلَحَ الْمُؤْمِنُونَ * الَّذِينَ هُمْ فِي صَلَاتِهِمْ خَاشِعُونَ * وَالَّذِينَ هُمْ عَنِ اللَّغْوِ مُعْرِضُونَ * وَالَّذِينَ هُمْ لِلزَّكَاةِ فَاعِلُونَ}

(Certainly will the believers have succeeded: % They who are during their prayer humbly submissive % And they who turn away from ill speech % And they who are observant of zakah.) (Al-Muminoon: 1-4)

Just note that the Almighty says ‘observants,’ not ‘performers.’ The question here is: how one can be an ‘observant’ rather than a ‘performer’ of Zakat? This is because you work as hard as you can, not as much as you need, and this is compatible with the concept of work under the concept of Zakat: to give part of your fortune away to the poor and the needy. This money, however, must have been earned through work. Thus, we have {observants} not ‘performers’ of Zakat. To sum up, there is a difference between observing and performing Zakat since you work as hard as you can to fulfill the needs of the poor and the needy.

(… وَيُكَفِّرُ عَنكُم مِّن سَيِّئَاتِكُمْ …) (…and He will remove from you some of your misdeeds …): Sins need to be forgive, while misdeeds need to be removed. The reason behind that is a misdeed is removed since you’re not doing wrong to the Almighty. No one can ever do wrong to Allah (swt). Therefore, a misdeed needs removal rather than forgiveness. On the other hand, forgiveness is associated with sins:

{ يَغْفِرْ لَكُم مِّن ذُنُوبِكُمْ}

(Allah will forgive for you your sins.) (Al-Ahqaf: 31)

A sin is different from a misdeed. You never harm the Almighty by the former but rather fall short in fulfilling His obligations such as not performing all the prayers. On the other hand, it’s a misdeed when you tell lies to someone or slander them. In short, a sin is committed against the Almighty, whereas a misdeed is done against His creatures. Moreover, the Almighty removes the misdeeds you have one day when you conceal charities and fulfill His obligations.

( وَاللَّهُ بِمَا تَعْمَلُونَ خَبِيرٌ … ) (…And Allah, with what you do, is [fully] Acquainted): The Almighty hasn’t said (Knowing) because He knows all the fine details and thoughts of a human being, so, He is Acquainted with that: when a human spends, they do it in the way of Allah (swt) and to have their misdeeds removed.

[1] Hadith no. 223, the bounty of Wudu’, Purification Vol. Sahih Al-Bukhari

[2] Hadith no. 1357, Chapter: charities by the hand right, Zakat Vol. Sahih Al-Bukhari