Short answer
Yes. The Prophet ﷺ said charity puts out sin as water puts out fire, and the Quran says secret charity removes misdeeds. Scholars explain that good deeds like charity wipe away minor sins, while major sins also need sincere repentance, and wrongs done to people must be put right.
Charity is among the good deeds that expiate minor sins. Major sins require repentance (tawbah), and rights owed to people must be returned or forgiven by them.
The four schools agree on this.
Explanation
The Prophet ﷺ told Muadh ibn Jabal of the gates of good: fasting is a shield, and charity puts out sin as water puts out fire. The Quran says that if you give charity secretly to the poor, Allah will remove some of your misdeeds, and that good deeds do away with bad ones.
Scholars of all four schools explain that this wiping away applies to minor sins. The Prophet ﷺ said the five prayers and one Friday to the next expiate what comes between them, as long as major sins are avoided. Major sins, such as missing prayers, drinking, or zina, need sincere repentance: regret, stopping, and resolving not to return. Charity can be part of that repentance. When Kab ibn Malik wanted to give away all his wealth after Allah accepted his repentance, he was told to keep some of it, and he gave part.
Two limits:
- Charity does not cancel a wrong done to a person. Stolen money must be returned, and a debt must be paid; giving it to charity instead does not settle it.
- Charity is not a licence. Giving while planning to keep sinning is not repentance.
Give often, even a little, with the hope that Allah will forgive you, and pair it with repentance. See does Allah forgive all sins and salat al-tawbah.
The evidence
Quran, Surah Al-Baqara 2:271
إِن تُبْدُوا۟ ٱلصَّدَقَٰتِ فَنِعِمَّا هِىَ ۖ وَإِن تُخْفُوهَا وَتُؤْتُوهَا ٱلْفُقَرَآءَ فَهُوَ خَيْرٌۭ لَّكُمْ ۚ وَيُكَفِّرُ عَنكُم مِّن سَيِّـَٔاتِكُمْ ۗ وَٱللَّهُ بِمَا تَعْمَلُونَ خَبِيرٌۭ ﴿٢٧١﴾
If you disclose your charitable expenditures, they are good; but if you conceal them and give them to the poor, it is better for you, and He will remove from you some of your misdeeds [thereby]. And Allah, with what you do, is [fully] Acquainted.
Secret charity removes misdeeds.
Quran, Surah Hud 11:114
وَأَقِمِ ٱلصَّلَوٰةَ طَرَفَىِ ٱلنَّهَارِ وَزُلَفًۭا مِّنَ ٱلَّيْلِ ۚ إِنَّ ٱلْحَسَنَٰتِ يُذْهِبْنَ ٱلسَّيِّـَٔاتِ ۚ ذَٰلِكَ ذِكْرَىٰ لِلذَّٰكِرِينَ ﴿١١٤﴾
And establish prayer at the two ends of the day and at the approach of the night. Indeed, good deeds do away with misdeeds. That is a reminder for those who remember.
Good deeds, charity among them, wipe out bad ones.
Jami' at-Tirmidhi 2616
Grading to be checked... والصدقة تطفئ الخطيئة كما يطفئ الماء النار ...
"Charity puts out sin just as water puts out fire."
Charity expiates sins.
Sahih Muslim 233
Sahih... الصلاة الخمس والجمعة إلى الجمعة كفارة لما بينهن ما لم تغش الكبائر ...
"The five prayers and from one Friday to the next are an expiation for what is between them, as long as major sins are not committed."
Good deeds expiate minor sins; major sins need repentance.
Sahih al-Bukhari 2757
Sahih... أمسك عليك بعض مالك فهو خير لك ...
"Keep some of your wealth; that is better for you."
Said to Kab ibn Malik when he wanted to give all his wealth after his repentance.
Checked by our team. For a more accurate answer to your own situation, consult a scholar. Quran translation by Sahih International. Hadith Arabic from the standard editions of the six books and the Muwatta, with gradings as recorded there; the English is our own rendering. Spotted a mistake? Tell us.