Religious Significance of Charitable Giving
All major religions of the world (Christianity, Islam, Buddhism, Hinduism, Sikhism etc.) consider charitable giving as a significant part of their religious practices. Many expect their congregation members to donate a small percentage of their wealth to the congregation on a regular basis. While Hinduism does not set a guideline; devotees, rich and poor, do donate to the temples, at least when they visit. The money is used to build, maintain, and operate the place of worship. It is also used to feed the congregation members and visitors (in some religions), and help the needy and poor (in all religions).
There are many activities that a good Hindu is expected to perform to earn Punya (virtue credit) to go to heaven after death and even freedom from cycles of life and death. Out of these activities like worship, fasting, meditation, penance, pilgrimage etc., the simplest and easiest to do is Daan (charitable giving). It could be donation of food (Annadaan), labor (Shramadaan), land (Bhudaan), cow (Godaan), gold (Swarnadaan) etc. and in lieu of them, money (Dhanadaan).