Donating Goods from Maaser Funds
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Question
Is it permissible to buy gifts for an avrech's family from maaser funds? Clothes, etc., as they are embarrassed to receive it as money.
Answer
Shalom and blessings
There is an important mitzvah to transfer charity funds in the most dignified manner possible. In any case where a person knows of a needy family that does not purchase various items they require, such as clothing, etc., but are embarrassed to take money, there is a great mitzvah to transfer the money in the form of goods and to tell them that you happen to have extras. Similarly, if you indeed have surplus goods and you know they need them, it is a great mitzvah to transfer them to the family, and you can deduct the value of the goods from maaser funds, but you should deduct according to the value that could have been easily obtained for these goods if the donor had sold them.
Source
Shulchan Aruch (Yoreh De'ah, Siman 251, Se'if 1)