It is narrated from Sayyiduna Abu Hurairah, may Allah be pleased with him, that the Messenger of Allah, peace and blessings be upon him, said: “Charity does not decrease wealth, and whoever forgives, Allah increases his honor, and whoever humbles himself for the sake of Allah, Allah raises his rank.”
From this hadith, the virtue of charity (sadaqah) is understood: charity does not decrease wealth, rather it increases it. Likewise, through forgiveness, generosity, and pardoning, one’s esteem, status, and honor are elevated; and through humility and modesty, one’s ranks are raised in the sight of Allah Ta‘ala.
Imam Nawawi rahimahullah said: By “Allah raises him,” both worldly honor and status, as well as elevation of ranks in the Hereafter, can be intended.