Is it better to give money in charity to the poor and needy, or to gift it to relatives and friends?

Charity (Sadaqah (definition)) is given to the poor and needy for the sake of Allah, while a gift (Hadiyah) is given to both the poor and the rich with the intention of fostering affection and showing honor. Both are righteous deeds for which one is rewarded. Charity is generally better, unless the gift carries a meaning that makes it superior, such as a gift to a relative to maintain kinship ties, or to a friend to strengthen love, as the Prophet, peace and blessings be upon him, said: "Give gifts to one another, and you will love one another."