Sadaqah
Sadaqah (meaning charity) stems from the root word ‘sidq’ meaning sincerity, is a concept of voluntary giving in Islam. Sadaqah can be given to anyone in need, you can give Sadaqah to orphans, family members, distant relatives or even strangers. Unlike Zakat which is compulsory upon every Muslim who is liable, Sadaqah can be given by anyone, giving any amount as a donation, from whatever you can give. It can be used to purchase anything to help the needy, for livelihood, contribute towards any living costs or to benefit the donor after death.
Aa’ishah (may Allah be pleased with her) reported that a man said to the Prophet (peace and blessings of Allah be upon him): "My mother has passed away, and if she could have spoken, she would have given something in charity. Will she receive a reward if I give something on her behalf?" He said, "Yes."
(Reported by al-Bukhaari, Fath, 1388)
Sadaqah Jariyah
Sadaqah Jariyah (meaning ongoing charity) is a special charitable act that continues to benefit us or our family members even after death. The role of Sadaqah in Islam is great, to be able to help the needy and giving charity to the poor is one of the best acts of worship and obedience in the eyes of Allah.
Allah says (interpretation of the meaning): “Those who spend their wealth (in Allah’s Cause) by night and day, in secret and in public, they shall have their reward with their Lord. On them shall be no fear, nor shall they grieve” [al-Baqarah 2:274]