Charity (Almsgiving) is one of the most important obligations in Islam, which impacts the wellbeing of an individual and the welfare of society. The charity helps eradicate poverty, reduce inequality and create a conducive environment for further growth and development both individually and socially. The charity has been recognized as a significant source of income generation, self-sufficiency, and improving macroeconomic indicators.

It can be easily argued that Charity in the Islamic faith represents some philanthropy by providing help, financial or otherwise, to needy people. This noble act is one way a Muslim individual can fulfil this religious obligation through their efforts with good intentions. Charity may take various forms [e.g., monetary support to orphans, needy and destitute; providing necessities such as food and clothing) but its only purpose is to serve the needs of others. Charity means giving or giving away what you have for God's sake, with your heart full of faith and trust in Him.

Muslim Charity is a kind act that brings solace to the poor and increases one's wealth if done sincerely for Allah. The charity has been described in many verses of the Holy Quran itself as an act that will bring rewards in this life and hereafter. Charity both purifies our souls and helps us acquire abundant wealth here on Earth. Charity is known as "Zakat" (meaning 'purification') when paying the certain amount set aside for charity every year and 'Sadqah' (meaning "voluntary charity") when given regularly. Charity is also a means to increase one's rewards from God. Charity in Islam does not mean helping only your own family, relatives, or tribe but also ordinary strangers. Charity given to neighbours has more reward than any other type of Charity.

The Holy Prophet Muhammad said:

Charity given to a neighbour has the same reward as Charity given to one's own family. Charity should be anonymous; it is not enough to give money: Charity given in secret will again have more rewards than Charity given openly. For Charity to be rewarded by Allah secretly is better than publicly. Charity reduces poverty and increases welfare, charity makes an enemy friend, and the giver of Charity earns wealth without effort.

The person giving charity with both his hands is like the one fasting during Ramadan out of sincere faith and belief in Allah and His Messenger, who Allah shall shelter from Hell-fire, even if he breaks his fast on account of travelling, he regains it when he returns home.

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