Mushaf View — Surah 2 2:262

To Remind About Charity Given is Forbidden
Allah praises those who spend from their money in His cause, and then refrain from reminding those who received the charity of that fact, whether these hints take the form of words or actions.
Allah's statement,
وَلاَ أَذًى
(or with injury), indicates that they do not cause harm to those whom they gave the charity to, for this harm will only annul the charity. Allah next promised them the best rewards for this good deed,
لَهُمْ أَجْرُهُمْ عِندَ رَبِّهِمْ
(their reward is with their Lord), indicating that Allah Himself will reward them for these righteous actions. Further,
وَلاَ خَوْفٌ عَلَيْهِمْ
(On them shall be no fear) regarding the horrors of the Day of Resurrection,
وَلاَ هُمْ يَحْزَنُونَ
(nor shall they grieve) regarding the offspring that they leave behind and the adornment and delights of this world. They will not feel sorry for this, because they will acquire what is far better for them.
Allah then said,
قَوْلٌ مَّعْرُوفٌ
(Kind words) meaning, compassionate words and a supplication for Muslims,
وَمَغْفِرَةٌ
(and forgiving) meaning, forgiving an injustice that took the form of actions or words,
خَيْرٌ مِّن صَدَقَةٍ يَتْبَعُهَآ أَذًى
(are better than Sadaqah (charity) followed by injury.)
وَاللَّهُ غَنِىٌّ
(And Allah is Rich) not needing His creation,
حَلِيمٌ
(Most Forbearing) forgives, releases and pardons them.
There are several Hadiths that prohibit reminding people of acts of charity. For instance, Muslim recorded that Abu Dharr said that the Messenger of Allah ﷺ said,
«ثَلَاثَةٌ لَا يُكَلِّمُهُمُ اللهُ يَوْمَ الْقِيَامَةِ، وَلَا يَنْظُرُ إِلَيْهِم، وَلَا يُزَكِّيهِمْ، وَلَهُمْ عَذَابٌ أَلِيمٌ: الْمَنَّانُ بِمَا أَعْطَى، وَالْمُسْبِلُ إِزَارَهُ، وَالْمُنَفِّقُ سِلْعَتَهُ بِالْحَلِفِ الْكَاذِب»
(Three persons whom Allah shall neither speak to on the Day of Resurrection nor look at nor purify, and they shall receive a painful torment: he who reminds (the people) of what he gives away, he who lengthens his clothes below the ankles and he who swears an oath while lying, to sell his merchandise.)
This is why Allah said,
يأَيُّهَا الَّذِينَ ءَامَنُواْ لاَ تُبْطِلُواْ صَدَقَـتِكُم بِالْمَنِّ وَالاٌّذَى
(O you who believe! Do not render in vain your Sadaqah (charity) by reminders of your generosity or by injury) stating that the charity will be rendered in vain if it is followed by harm or reminders. In this case, the reward of giving away charity is not sufficient enough to nullify the harm and reminders. Allah then said,
كَالَّذِى يُنفِقُ مَالَهُ رِئَآءَ النَّاسِ
(like him who spends his wealth to be seen of men) meaning, "Do not nullify your acts of charity by following them with reminders and harm, just like the charity of those who give it to show off to people." The boasting person pretends to give away charity for Allah's sake, but in reality seeks to gain people's praise and the reputation of being kind or generous, or other material gains of this life. All the while, he does not think about Allah or gaining His pleasure and generous rewards, and this is why Allah said,
وَلاَ يُؤْمِنُ بِاللَّهِ وَالْيَوْمِ الاٌّخِرِ
(and he does not believe in Allah, nor in the Last Day.)
Allah next set the example of whoever gives charity to show off. Ad-Dahhak commented that the example fits one who follows his acts of charity with reminders or harm. Allah said,
فَمَثَلُهُ كَمَثَلِ صَفْوَانٍ
(His likeness is the likeness of Safwan) where Safwan, from is Safwanah, meaning `the smooth rocks,'
عَلَيْهِ تُرَابٌ فَأَصَابَهُ وَابِلٌ
(on which is little dust; on it falls a Wabil) meaning, heavy rain,
فَتَرَكَهُ صَلْدًا
(which leaves it bare.) This Ayah means that heavy rain left the Safwan completely barren of dust. Such is the case with Allah's action regarding the work of those who show off, as their deeds are bound to vanish and disappear, even though people think that these deeds are as plentiful as specks of dust. So Allah said,
لاَّ يَقْدِرُونَ عَلَى شَىْءٍ مِّمَّا كَسَبُواْ وَاللَّهُ لاَ يَهْدِي الْقَوْمَ الْكَـفِرِينَ
(They are not able to do anything with what they have earned. And Allah does not guide the disbelieving people.)

(Those who spend their wealth for the cause of Allah) this was revealed about 'Uthman Ibn 'Affan and 'Abd al-Rahman Ibn 'Awf, (and afterward make not reproach) to Allah (and injury) upon whom they spend it on (to follow that which they have spent) after their spending; (their reward is with their Lord) in Paradise, (and there shall no fear come upon them) regarding any future torment, (neither shall they grieve) about what they have left behind.

Those who expend their wealth in the way of God then do not follow up their expenditure with reminder of their generosity of the one on whom they expended for example by saying ‘I was good to him and restored his affairs’; and injury to that person by mentioning this to people whom he would prefer not to know about it; their wage the reward for their expenditure is with their Lord and no fear shall befall them neither shall they grieve in the Hereafter.

Conditions that make charity go in vain
Two negative conditions governing the acceptance of sadaqah صدقہ have been stated in this verse:
1. Do not publicise your favour after spending.
2. Do not consider the receiver practically disgraced, and do nothing to cause him insult or pain.

One who spends his wealth in order to gain worldly fame and prestige, and who seeks to be recompensed in this ephemeral world, will have no share in the rewards of the life everlasting. Those who spend for the cause of God, on the other hand, adopt a different approach. They do not, for one, taunt their beneficiaries with reminders of the favours they have bestowed. Indeed, having spent from their wealth for the cause of God, they do not consider themselves to have bestowed any favour at all upon anyone. And they do not show any displeasure if a gracious response is not forthcoming from those to whom they have been generous. This is because their hopes are pinned on being rewarded in full by God, so what do they care if human beings show appreciation or not? Moreover, if they are unable to accede to a request for monetary assistance, at least they do not rebuff the suppliant. Instead, they find kind words with which to excuse themselves, for they know that God hears everything they say. Their fear of God makes them circumspect in the choice of words they utter to their fellow human beings.