What is the difference between a gift (hiba), a donation (atiya), and a charity (sadaqa)?

Charity (Sadaqah) is a gift intended for reward in the Hereafter, whereas a present (Hadiyah) is a gift intended for honoring, fostering affection, or as a reward. As for a grant (Hibah), a boon (Nihlah), and a gift (Atiyyah), these are terms used for a gift when none of the aforementioned intentions are present.

Charity is superior to a grant, unless the grant contains a meaning that necessitates its preference, such as giving a present to the Prophet, peace and blessings be upon him, out of love, or to a relative to maintain kinship ties, or to a brother in faith, or if the present removes malice and brings affection. Giving a gift is disliked if the intention behind it is boasting, showing off, or seeking reputation.