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Surah 2. Al-Baqara, Ayah 263

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قَوْلٌ مَّعْرُوفٌ وَمَغْفِرَةٌ خَيْرٌ مِّن صَدَقَةٍ يَتْبَعُهَآ أَذًى ۗ وَٱللَّهُ غَنِىٌّ حَلِيمٌ
Qawlun maAAroofun wamaghfiratun khayrun min s adaqatin yatbaAAuh a a th an wa A ll a hu ghaniyyun h aleem un
A kind word and the veiling of another's want259 is better than a charitable deed followed by hurt; and God is self-sufficient, forbearing.
  - Mohammad Asad

For the rendering of maghfarah (lit., "forgiveness") in this context as "veiling another's want" I am indebted to Baghawi's explanation of this verse.

Kind words and forgiveness are better than charity followed by injury. Allah is Self-sufficient, Forbearing.
  - Muhammad Farooq-i-Azam Malik
Kind words and forgiveness are better than charity followed by injury. And Allah is Self-Sufficient, Most Forbearing.
  - Mustafa Khattab
A kind word with forgiveness is better than almsgiving followed by injury. Allah is Absolute, Clement.
  - Marmaduke Pickthall
Kind words and the covering of faults are better than charity followed by injury. Allah is free of all wants and he is Most Forbearing. 309
  - Abdullah Yusuf Ali

A very high standard is set for charity. (1) It must be in the way of God. (2) It must expect no reward in this world. (3) It must not be followed by references or reminders to the act of charity. (4) Still less should any annoyance or injury be caused to the recipient; e.g. by boasting that the giver relieved the person in the hour of need. Indeed, the kindness and the spirit which turns a blind eye to other people's faults or short-comings is the essence of charity: these things are better than charity if charity is spoilt by tricks that do harm. At the same time, while no reward is to be expected, there is abundant reward from God - material, moral, and spiritual - according to His own good pleasure and plan. If we spend in the way of God, it is not as if God was in need of our charity. On the contrary our short-comings are so great that we require His utmost forbearance before any good that we can do can merit His praise or reward. Our motives are so mixed that our best may really be very poor if judged by a very strict standard.

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