The nature of Tzedakah

R. Hiyya said to his wife: "When a poor man comes, be quick to offer him bread, so that others may be quick to offer it to your children." She said "You are cursing them [our children]!" He replied, "It is written in the Torah: 'because of [bigelal] this thing', as the School of R. Ishmael taught: It is a wheel [galgal] that revolves in the world."

There are eight degrees of tzedakah, each higher than the next. The highest degree, exceeded by none, is that of the person who assists a poor person by providing him with a gift or a loan or by accepting him into a business partnership or by helping him find employment in order to strengthen his hand until he needs no longer [beg from] people. With reference to such aid, it is said, “You shall strengthen him, be he a stranger or a settler, he shall live with you” (Vayikra [Leviticus] 25:35), which means strengthen him in such a manner that his falling into want is prevented. Below this is that of the person who gives tzedakah to poor people, but the giver doesn’t know to whom he is giving nor does the recipient know from whom he is receiving. This constitutes giving for its own sake. This is similar to the Secret Office that was in the Temple. There the righteous ones gave secretly and the poor people would be sustained from it anonymously. This is similar to giving to a tzedakah collection. But one should only give to a tzedakah collection if he knows that the overseer is trustworthy and wise and conducts himself fairly, like Rabbi Channaniah ben Tradyon. Below this is a situation in which the giver knows to whom he is giving but the poor person does not know from whom he is receiving. This is like the great sages who used to walk in secret and put coins into the doors of poor people. It is worthy and truly good to do this if those who are responsible for collecting tzedakah are not trustworthy. Below this is a situation in which the poor person knows from whom he is receiving, but the giver does not know the recipient. This is like the great sages who used to bundle coins in their scarves and roll them up over their backs and poor people would come and collect without being embarrassed. Below this is one who gives before being asked. Below this is one who gives after being asked. Below this is one who gives less than what is appropriate but gives it happily. Below this is one who gives unhappily.

One can say yet more about this verse, in light of what our Sages of blessed memory said [Babylonian Talmud Shabbat 151b], on the verse [Deuteronomy 15:10], "'Because of (biglal) this thing': a wheel (galgal) revolves in the world," as Rabbi Hiyya said to his daughter 'Be quick to give bread to the poor, so that he will do the same for your child'; she replied, "[Why do] you curse me!" He said, "a wheel revolves in the world." Therefore, any tzedakah or loans will be repaid over the course of generations. And therefore, the poor person is not the unique beneficiary of tzedakah or loans [he receives], because they are [given] in return in [other] generations. Against the claim that the poor [recipient] should feel badly because [even so] the loan will only be paid back several generations hence, it should be said, "Who can say who is the [real] benefactor?? Perhaps the ancestors of the poor person gave tzedakah or a loan to the ancestors of the rich person, and now the thing has come around [gulgal hadavar] so that his [the poor person's] ancestors are being repaid." This is the sense of the verse [Exodus 22:24] "the poor person who is with you," which is why "do not be as a lender" making him feel badly, like a servant to the one who lends to him.