Anonymous Charity Better
[2:270] Any charity you give, or a charitable pledge you fulfill, GOD is fully aware thereof. As for the wicked, they will have no helpers.
[2:271] If you declare your charities, they are still good. But if you keep them anonymous, and give them to the poor, it is better for you, and remits more of your sins. GOD is fully Cognizant of everything you do.
Who is this referring to that they declare it?
This is referring to announcing our charity either to the receiving party or other individuals. When we give to charity secretly it shows that we are doing it 100% to please God and not for the accolades or acknowledgement of others.
This verse also shows that charity needs to be done both publicly and secretly. When we give publicly we encourage others to give. People are apt to behave in similar manner based on how a community behaves in the public.
Behavioral Science and Social Impact
Matthew – Chapter 6
Giving to the Poor and Prayer
1“Beware of practicing your righteousness before men to be noticed by them; otherwise you have no reward with your Father who is in heaven. 2“So when you give to the poor, do not sound a trumpet before you, as the hypocrites do in the synagogues and in the streets, so that they may be honored by men. Truly I say to you, they have their reward in full. 3“But when you give to the poor, do not let your left hand know what your right hand is doing, 4so that your giving will be in secret; and your Father who sees what is done in secret will reward you