Fiqh-us-Sunnah Volume 3, Zakaat and Fasting, Fiqh 3.100.

Section : Those Who Have Precedence for Receiving Sadaqah.

One’s children, family, and relatives have precedence over others. It is not permissible to give sadaqah to a stranger when you and your dependents are in need of it.

It is related from Jabir that the Messenger of Allah, upon whom be peace, said: “When one of you is poor, he starts with himself. If anything is left, he spends it on his dependents. If anything is (still left) then on his relatives, and then, if more is left, he spends it here and there.”

The Messenger of Allah, upon whom be peace, said: “Give sadaqah.” A man said: “I have a dinar.” He replied: “Give it to yourself as sadaqah.” He said: “I have another dinar.” He replied: “Give it to your wife as sadaqah.” He said: “I have another dinar.” He replied: “Give it to your child as sadaqah.” He said: “I have another dinar.” He replied: “Give it to your servant as sadaqah.” He said: “I have another dinar.” He replied: “You would be able to assess better [to whom to give it].” This is related by Abu Dawud, an-Nasa’i, and Hakim. Hakim grades it as authentic.

The Messenger of Allah, upon whom be peace, said: “A man has sinned enough if he neglects to feed those in need.” This is related by Muslim and Abu Dawud.

Also: “The most excellent sadaqah is that given to a relative who does not like you.” This is related by at-Tabarani and Hakim. The latter grades it authentic.