He was always in the forefront in the undertaking of beneficent activities. When the Muslims came to Madina there was only one well of sweet water in the city which belonged to a Jew who imposed restrictions on the use of the well by the Muslims. Uthman purchased the well from the Jew and dedicated it to the use of the Muslims. When after the conquest of Makkah, the people came to accept Islam in large numbers, and the need for the extension of the Prophet's mosque was keenly felt Uthman exclusively financed the project for the extension of the mosque. In the time of Umar a severe famine broke out in the country and there was a great scarcity of food grains. At that time a caravan arrived in Madina which brought a large stock of food grains belonging to Uthman. The traders in Madina rushed to the house of Uthman, and tried to prevail upon him to sell the goods to them at profit. Uthman asked them to offer their bid about the profit that they would give him. The highest bid offered provided for a cent per cent profit. Uthman said that he could not accept their offer as the bid was low. The traders said that no body could give a higher bid than that. Uthman said that he already had an offer often times profit. The traders wanted to know as to who had made such a high offer. Uthman said that Allah had made such offer to him. There upon Uthman donated the entire stock to the State for free distribution among the poor and the needy.