Prophet Muhammad peace be upon him said: “The best charity is that which is given when one has surplus wealth; and the upper hand is better than lower hand. But in giving charity begin with your dependents.”
And that is because of the greed of the human being. The prophet has said “If you give Adam’s descendants a valley of gold, they would want another one”.
But there also other circumstances.
Prophet Muhammad has said in another narration “The best charity is that given with great difficulty when one is destitute.”
Prophet Muhammad has said that, “The best charity is offering water to the public.”
He also has said “Save yourself from hell fire even it is by giving only half a date in charity.”
Prophet Muhammad has said “If one gives one date, honestly from his own money, and (Allah only accepts the honest money), Allah will take it in his right hand and enlarge the reward for that person, so much so that it becomes the size of a mountain.”
Furthermore, Prophet Muhammad has said regarding charity, in terms of benefit “Charity extinguishes sins like water extinguishes fire.”
See last week’s hadith the best of character.