Allah (swt) says in the Holy Quran:
‘Those who are niggardly and bid people to be niggardly and hide what Allah has given them out of His grace; and We have prepared for the unbelievers a disgraceful chastisement’.
‘And those who spend their properties (in alms) to be seen of the people and do not believe in Allah nor in the Last Day; and as for him whose associate is the Satan, an evil associate is he! (TMQ-4:38)
‘And what loss have they if they had believed in Allah and in the Last Day and they had spent out of what Allah has given them for sustenance? And Allah is Ever All-Knower of them’. (TMQ-4:39)
In verse 4:37, Allah (swt) has warned those people of a disgraceful punishment who behave in a miserly way and encourage others also to do so. Such people are a nuisance to the society because they display an evil mindset of clinging onto the worldly fortunes. This is totally against the Commandment of Allah (swt) because Allah (swt) has made it absolutely clear that He has made some people rich and some other poor mainly because He wants to test them. The rich do not own anything which they claim to own because everything which is in the world and in the Heavens belongs to Allah (swt) alone. Allah (swt) has Commanded the rich to give away a portion out of the wealth which He has Bestowed on them. Therefore, if the rich do not obey Allah (swt) then they have been warned about a disgraceful punishment. The second point which has been highlighted in verse 4:37 is that if Allah (swt) has Bestowed a person with riches then he should have a standard of living which reflects his sound financial position. Hiding one’s wealth and not spending it on oneself or on one’s family or on the destitute that we find around us, would be tantamount to showing ingratitude towards Allah (swt). According to this verse, the people who indulge in miserliness and encourage others to behave in a similar fashion and the people who hide the Bounty of Allah (swt) are all referred to as unbelievers and are doomed to disaster.
In verse 4:38 it is mentioned that besides the misers, Allah (swt) also condemns those people who give charity but only to show off before others. This implies that instead of giving away charitable donation for obtaining Allah (swt)’s Goodwill (like the pious people do), some hypocrites give charity only for the sake of getting some publicity. Such people defy the main purpose of giving donation or charity which is to earn Allah (swt)’s Goodwill and Rewards and for expiation of one’s sins. Such people are regarded as the companions of Satan, as they do not believe in the Day of Judgment.
In verse 4:39, Allah (swt) has asked that what is the logic due to which the unbelievers had no faith in Him and in the Day of Judgment? That is to say what harm would it have caused the unbelievers had they placed their trust in Him and had they had spend out of their wealth in the Way of Allah (swt). This implies that it would not have caused any harm to the unbelievers if they had obeyed Allah (swt) and His Commandments. Allah (swt) knows everything about such disobedient people and He will teach them a lesson, sooner or later.
To sum up, we can say that the wealthy people who display negative traits such as haughtiness, apathy, greed, selfishness and miserliness and do not give donation/charity for the sake of Allah (swt) are actually humiliating the needy by looking down upon them instead of co-operating with them. Allah (swt) will pay them back in the same coin in Hereafter by humiliating them with a severe punishment.