Is it permissible for a person to give all of their wealth as charity?
Jabir ibn Abdullah al-Anṣārī, may Allah be pleased with him, narrated:
We were in the company of the Messenger of Allah, peace and blessings be upon him, when a man came bearing gold the size of an egg. He said, “O Messenger of Allah, I obtained this gold from a mine and it is sadaqah.” The Messenger of Allah, peace and blessings be upon him, declined to accept it. Then he approached from his right side and made the same offer. Again, the Messenger of Allah, peace and blessings be upon him, declined. He then approached the Prophet, peace and blessings be upon him, from his left side (and made the same offer). The Messenger of Allah, peace and blessings be upon him, again declined to accept it. This time, the man came from behind him and presented it to the Messenger of Allah, peace and blessings be upon him. The Prophet, peace and blessings be upon him, then accepted it and threw it at the man. Had it struck him on either side, it would have injured or destroyed him.
Thereupon the Messenger of Allah, peace and blessings be upon him, said: “Let not one of you bring his wealth and say, ‘This is sadaqah,’ then sit waiting for people to beg from him. The best of sadaqah is that which exceeds need and is given from one’s property.”
EXPLANATION
The Master of the Worlds, upon him be peace and blessings, had permitted Abū Bakr, may Allah be pleased with him, to donate all of his wealth. Because Abū Bakr had attained the station of truthfulness (maqdm-i siddiqiyyah) and would not fall into a state of begging even if he had no property left. But because this man was deemed incapable of patience in this situation, he did not permit him to give everything he possessed as sadaqah.
From Ibn Ishaq, this hadith was transmitted on the same chain and with the same meaning, and in his narration is the addition: "Take back your property from us; we have no need for it."
Iyaz, from Ibn Abdullah ibn Sa’d, may Allah be pleased with him, relates:
I heard Abu Sa'id al-Hudri say: A person seeking assistance entered the mosque. The Messenger of Allah, peace and blessings be upon him, ordered the congregation to donate garments. The congregation donated some of their garments. The Messenger of Allah, peace and blessings be upon him, commanded that he take two of those garments. The Messenger of Allah, peace and blessings be upon him, again encouraged charity. The poor man who had been given clothing brought one of those two garments and gave it in charity. The Prophet, peace and blessings be upon him, said to him: “Take back your garment.”
Abu Hurayrah, may Allah be pleased with him, narrated:
The Messenger of Allah, peace and blessings be upon him, said: “The best of charities is that which leaves behind property or which is given when one is wealthy. Begin giving charity to those for whom you are responsible.”