[2:263] Honorable words and forgiveness are better than a voluntary almsgiving followed by injury; and God is Independent, Forbearing.
It means that words alone for the poor man, responding to his overture without showing censure, are better and more perfect than the alms of one who is proud of his act and what follows in causing one to suffer reproach.
It is said it is an acknowledgement from you with God of your weakness and sin. God's forgiveness for you upon these words is better than alms adulterated with reproach and accompanied by injury.