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Maimonides lists his Eight Levels of Giving, as written in the Mishneh Torah, Hilkhot Matanot Aniyim (Laws about Giving to Poor People), Chapter 10:7-14:
 

1. Giving an interest-free loan to a person in need; giving a grant to a person in need.
2. Giving tzedakah anonymously to an unknown recipient via a person (or public fund) which is trustworthy, wise, and can perform acts of tzedakah with your money in a most impeccable fashion.
3. Giving tzedakah anonymously to a known recipient.
4. Giving tzedakah publicly to an unknown recipient.
5. Giving tzedakah before being asked.
6. Giving adequately after being asked.
7. Giving willingly, but inadequately.
8. Giving "in sadness" - it is thought that Maimonides was referring to giving because of the sad feelings one might have in seeing people in need (as opposed to giving because it is a religious obligation; giving out of pity).

In practice

In practice, most Jews carry out tzedakah by donating a portion of their income to charitable institutions, or to needy people that they may encounter; the perception among many modern day Jews is that if donation of this form is not possible, the obligation of tzedakah still requires that something is given. Special acts of tzedakah are performed on significant days; at weddings, Jewish brides and bridegrooms would traditionally give to charity, to symbolise the sacred character of the marriage; at Passover, a major holiday in Jewish tradition, it is traditional to be welcoming towards hungry strangers, and feed them at the table; at Purim it is considered obligatory for every Jew to give food to two other people, in an amount that would equate to a meal each, for the purpose of increasing the total happiness during the month.

As for the more limited form of tzedakah expressed in the biblical laws, namely the leaving of gleanings from certain crops, the Shulchan Aruch argues that Jewish farmers are no longer obliged to obey it. Nevertheless, in modern Israel, rabbis of Orthodox Judaism insist that Jews allow gleanings to be consumed by the poor and by strangers, and all crops (not just gleanings) by anyone and everyone (free, not bought nor sold) during Sabbatical years.

In addition, one must be very careful about how one gives out tzedakah money. It is not sufficient to just give to anyone or any organization, rather, one must check the credentials and finances to be sure that your Tzedakah money will be used wisely, efficiently and effectively (Proverbs 22:22 - Do not steal from a poor person, for (s)he is poor) and from Talmudic-era commentaries including Numbers Rabba 5:2. It is taught that Tzedakah money was never yours to begin with, rather, it always belongs to the recipient, and hence you have an obligation to give it AND to give it away to places that use it efficiently and effectively. Two examples of Tzedakah funds that operate according to Maimonides' principles above (particularly #2), are Hands on Tzedakah (working with non-profits in the USA and in Israel), and Mitzvah Heroes Fund (working mainly with non-profits in Israel).

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