إِن تُبۡدُواْ ٱلصَّدَقَـٰتِ فَنِعِمَّا هِىَۖ وَإِن تُخۡفُوهَا وَتُؤۡتُوهَا ٱلۡفُقَرَآءَ فَهُوَ خَيۡرٌ۬ لَّڪُمۡۚ وَيُكَفِّرُ عَنڪُم مِّن سَيِّـَٔاتِڪُمۡۗ وَٱللَّهُ بِمَا تَعۡمَلُونَ خَبِيرٌ۬۔
"IF YOU KEEP THE ALMS OPEN, IT IS GOOD ENOUGH, AND IF YOU KEEP IT SECRET AND GIVE IT TO THE NEEDY, IT IS FAR BETTER FOR YOU. AND THIS WILL WRITE OFF PART OF YOUR SINS. AND ALLAH IS ALL-AWARE OF WHAT YOU DO."
This verse covers all types of charity, whether obligatory or voluntary. According to this verse it is more preferable to give all manner of charities in secret. When one gives charity secretly it is much safer for him as it protects him from the major sin of Riya (show-off), and his Ikhlas (sincerity) of intention is also likely to be higher as no one in the world besides him and the person who took it, knows that he has given charity. Similarly it is also preferable for the person taking charity as it preserves his self-respect, and he is spared embarrassment in front of everyone else. However, it is allowed to give charity in front of others if there is reason to believe that it will also encourage them to give charity.
Further on where it says, 'and this will write off part of your sins', this is not specific to giving charity secretly. At this place forgiveness of sins has been mentioned in combination with giving charity secretly to advise that if you are feeling that there was no point in giving charity secretly as it would not lead to any overt benefits, then don't get disheartened as, as a result of doing this, Allah Ta'alah will forgive your sins, and there can be no greater benefit than that.
Adapted from ma'ariful Quran, by Mufti Muhammad Shafi Rehmatullah Elaih
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