Based on Ahavas Chesed vol. 2 chapter 19

Having discussed the process for tithing one’s money, the Chofetz Chaim now addresses the procedure for distributing one’s tithed funds.

It’s common knowledge that the reason for tithing money is to assist the needy and that one’s own needy relatives take precedence over others. One could even give his tithe to his adult children, since he is not obligated to support them as he was when they were minors. This is true even if he has the wherewithal to support them from other funds. When it comes to one’s parents, however, one may only support them with maaser money if he lacks the ability to do so with other funds.

Now let’s say that one’s relatives are not needy, so he’s going to give his maaser money to others. In such a case, it is appropriate to prioritize those who engage in Torah study, as this will facilitate them in their endeavor. This is inferred from Midrash Tanchuma (Re’eh 18):

Tithe so you will not lack: this is a hint to seafaring merchants to separate one-tenth for those whose occupation is Torah study.

Similarly, regarding the prototypical agricultural gifts, which were given to kohanim and Leviim, the Gemara in Chulin (30b) says not to give them to unlearned recipients. This is based on II Chronicles 31:4: “…to give portions to the kohanim and Leviim so that they might strengthen themselves in Hashem’s Torah.”

We see that the intention of tithes is ultimately to further Torah study, so one should ensure to give at least half his maaser funds to recipients who work towards that goal.

The Achronim write that one may use maaser money to pay for a couple’s wedding if that’s the only way to get it done; the same is true of using the money to pay for a bris. One may even use maaser money to purchase seforim which will be lent to others. One may also learn from these seforim himself, but there’s a catch: he must write in them that they were purchased with maaser money so that his heirs should not take ownership of them after he passes.

There are, of course, authorities who disagree with what’s written in the preceding paragraph. These authorities only allow maaser funds to be used for supporting the needy. The Chofetz Chaim, however, feels that one may be lenient as per the first opinion. After all, helping a needy father pay for a wedding or a bris, or lending seforim to those who can’t afford to purchase them, are all forms of tzedakah. In fact, the Chofetz Chaim would even allow using maaser money to buy an aliyah to the Torah if the money raised is being disbursed to the poor.

However… no one allows using maaser money to pay for his own children’s education. A person is obligated in seeing to his children’s education, so tzedakah funds may not be used for this purpose. But paying for the education of a needy third party’s children? That’s not only permitted, it’s considered meritorious!

One must understand that setting aside one-tenth of one’s income for charity is just a standard amount. A person who wishes to be generous should separate 20%. (10% is called maaser; 20% is called chomesh.) This practice is derived from Genesis 28:22. There, Yaakov says, “Of all that You give me, I will give a tithe; I will give one-tenth to You.” He says it twice, so that’s two-tenths, i.e., a fifth.

If a person chooses to give chomesh, he should divide the designated funds in two. The first half he should designate for those whose occupation is Torah, in emulation of the original tithes as per the aforementioned II Chronicles 31:4. The second half may then be designated for other mitzvah purposes.

According to some authorities, the idea that setting aside is chomesh going above and beyond, but not actually obligatory, is conditional. That’s only the case when one is unaware of people in the city who are close to starving or dressed in tatters. If one is aware of such needs, then he must in fact separate 20% to ensure that those needs are met. This, however, is only the case when a person can afford to do so; one should not impoverish himself in order to help others.

At this point, the Chofetz Chaim discusses the possibility of setting aside more that 20% of one’s money for tzedakah and mitzvah purposes. The Gemara seems to prohibit this (Kesubos 50a), while the Rambam considers it meritorious. There’s some back-and-forth discussion, and it gets rather technical, so let’s cut to the chase: Bottom line, one is not permitted to give all his money to charity. This is derived from Leviticus 27:28, which says that donations to the Temple should come “from all that he has,” not “all that he has.” If one can’t give everything he owns to God, it should go without saying that he can’t give everything to human beings (Erchin 28a).

Additionally, there’s a Torah principle that safeguarding one’s own life takes priority over that of another person. A person lost in the desert can’t give his canteen to save another at the expense of his own life, and one can’t give everything he has to tzedakah, thereby making himself a pauper.

There’s a lot more back-and-forth about whether 20% is a baseline or above and beyond, the Rambam and the Vilna Gaon appearing to consider it a baseline, particularly when needy potential recipients are known. The Shulchan Aruch, however, seems to consider giving up to 20% to be going above and beyond regardless of the presence or absence of needy potential recipients. (See this chapter in Ahavas Chesed if you care to see all the details.)

Get handy, colorful chesed "cheat sheets" in A Universe of Chesed!