God says
A kind of word and veiling of another's want is better than charity followed by hurt: -- Q.2:263
.....and choose not for your spending the bad things (to others) which you yourselves would not accept without averting your eyes in disadain. -- Q.2:267
Never shall you attain to tru piety unless you spend on others what you chericsh yourselves; -- Q.3:92
And Neither allow thy hand to remain shackled to thy neck,* nor stretch it forth to the utmost limit (of thy capacity), lest thou find thyself blamed (by thy dependents), or even destitute. -- Q.17:29
* A metaphor signifying miserliness and, in particular, unwillingness to help others (cf. a similar expression in 5:64).
Prophet said
1. "...wealth of a man does not diminish if given in charity..." -- H:Tirmizi. N:Abu Kabshah al-Anmariy.
2. "Spend and don't count lest god couns while giving you, and don't hoard up lest God with holds from you. Spend (on charity) what you can." - H: Bukhari and Muslim. N: Asma
3. "Indeed charity decreases wrath of God and removes pangs of death." -- H: Tirmizi. N: Anas.