Tzedakah is derived from צדק - meaning righteousness, justice, or fairness, but has come to mean charity in English. Giving charity is an obligation in Judaism (Leviticus 25:35-38, Deuteronomy 19:20-24). This obligation means providing charity to both Jew and non-Jew. In many homes one will find a tzedakah box - a box or other container where coins are dropped in and collected for charity. It is a tradition for Jews to give tzedakah on Yom Kippur, Shemini Atzeret, Pesach, Shavuot, and Purim.

According to halachah, everyone (including the poor) is to give 10% of one's net income. One may give more than 10% but no more than 20%. If one cannot give that amount, any amount will be satisfactory. One is forbidden from giving so much that one becomes impoverished. The obligation to perform tzedakah can be fulfilled by giving money to the poor, to health care institutions, to synagogues, or to educational institutions.  It can also be fulfilled by supporting your children beyond the age when you are legally required to, or supporting your parents in their old age. It is acknowledged that not everyone who asks for tzedakah is truly in need so there is some legitimate basis for doubting a beggar's sincerity. It is permissible (and some say ethical) to investigate a charity before offering any donation.

Everyone has an obligation to avoid becoming in need of tzedakah. A person should take any work available to him/her even if the work is "beneath" him/her to avoid becoming needful of tzedakah. Of course, if one is truly in need of tzedakah, one is obligated to accept any that is offered. Contrary to popular belief, Jewish scholars, teachers, and rabbis must earn an income from employment other than teaching Torah and relying on tzedakah.

There are different levels of tzedakah described in the Talmud that were organized into eight levels by Ramban (Rabbi Nachmanides).

1. To give begrudgingly
2. To give less than one should, but giving cheerfully
3. To give after being asked
4. To give before being asked
5. To give without knowing the recipient's identity but the recipient knows one's identity
6. To give knowing the recipient's identity but the recipient does not know one's identity
7. To give without knowing the recipient's identity and the recipient does not know one's identity
8. Enable the recipient to become self-sufficient (i.e. loans, grants, employment)

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