What is the importance of charity in Islam?

The example of those who spend their wealth in the way of Allah is like a seed [of grain] which grows seven spikes; in each spike is a hundred grains. And Allah multiplies [His reward] for whom He wills. And Allah is all-Encompassing and Knowing. (Surah Baqarah:261) 
Islam teaches us all many beautiful things through Quran and Sunnah, and giving charity is one of them. Charity is one’s way to show compassion towards the needy. It acts as a reminder to try fulfilling the needs of others for the sake of humanity. If a Muslim feels the pain of his or her fellow human being, and wishes the same comfort and good life for others which he wishes for himself; it is indeed a natural reaction to give in charity in order to ease their suffering.
Charity helps Muslims to remember that they are humble before Allah(SWT), and that every blessing they have in this life comes from Him. This is the reason Zakat (standardized percentage,2.5%, of one’s extra wealth) has been made obligatory to Muslims, though making extensive charity results in nothing but blessings and rewards from Allah(SWT). This voluntary charity, also known as Sadaqah, is mostly given when Muslims are facing calamities. Nonetheless, many give it out without any particular reason but only earning some good deeds. The Prophet Muhammad (SAW) said: 
 “A charity is due for every joint in each person on every day the sun comes up: to act justly between two people is a charity; to help a man with his mount, lifting him onto it or hoisting up his belongings onto it, is a charity; a good word is a charity; and removing a harmful thing from the road is a charity.” (Al-Bukhari, Muslim) 
This hadith indicates that charity comes out in many forms. From simple gestures to providing money for the needy. Of course, everyone has monetary needs and charity in the form of money, clothes and food is most suitable as it pertains to basic needs they require. 
Those who spend their wealth [in Allah 's way] by night and by day, secretly and publicly - they will have their reward with their Lord. And no fear will there be concerning them, nor will they grieve. (Surah Baqarah:274) 
The degree of the reward is dependent on the extent and significance of the benefit of the charitable act, for the sake of Allah (SWT). Charity serves as a way to bring justice, balance and kindness to every community. All we hope is that the Muslim community fulfills their charitable duty in the correct manner and contributes in trying to eliminate poverty in communities everywhere. 

As the Islamic New Year has begun a few days ago, it is a wise and certainly the best choice to mark the year’s embarkment by giving our fair share in the name of charity.The month of Muharram is sacred; all the more reason to take such initiatives. Human Concern International is currently working for the needy and they aim to improve the lives of vulnerable people all around the world. It is highly encouraged that those who can contribute and help in making a living for those in need; the step needs to be taken with no delay indeed. 
Have you made your share yet? Donate to Human Concern International Now! They cater to several types donations. 
The Prophet Mohammad (SAW) once said: 
 “The believer’s shade on the Day of Resurrection will be his charity.” (Al-Tirmidhi)