Prophet, sallallaahu `alayhi wa sallam ( may Allaah exalt his mention ), said: A generous person is close to Allah, close to Paradise, close to people, and far from Hell. However, a miserly person is far from Allah, far from Paradise, far from people, but close to Hell. Allah loves more an ignorant man who is generous than a worshipper who is miserly. (Tirmidhi.)

Increase your rank in the sight of Allah (SWT)

Prophet, sallallaahu `alayhi wa sallam ( may Allaah exalt his mention ), said: “This worldly life is for four categories of people: a man to whom Allaah has given wealth and knowledge, so he fears his Lord, maintains ties of kinship with this money, and he knows the rights of Allaah regarding it, this one is truly in the best rank ...” [At-Tirmithi]

Increase your Wealth

The parable of those who spend their substance in the way of Allah is that of a grain of corn: It grows seven ears and each ear has a hundred grains. Allah gives manifold increase to whom He pleases and Allah cares for all and He knows all things. (2:261)

Wipe out your Sins

Allah promised forgiveness of our sins if we give in charity and give to the poor and needy. He honored our charity and described it as a “ beautiful loan to Allah “ to emphasize that we are doing something good that He loves, and that He himself will pay our loan back to us doubled:

“If you disclose your charity, it is well; but if you conceal it and give it to the poor, that is better for you. [Allah] will expiate some of your sins. And Allah is well-acquainted with all that you do.” (Surah al-Baqarah:271)