In the third verse: قَوْلٌ مَّعْرُوفٌ (saying something proper), these two conditions for acceptance of charitable gifts in the sight of Allah have been further explained. Incidentally, these were introduced in the earlier verse. To repeat, when you spend in the way of Allah, do not show off the favour, and when you give something to somebody do nothing to make him feel insulted, or to cause him pain.
This was explained by saying that it is a thousand times better to offer some reasonable and appropriate excuse before the person who asks, if the giver feels he is unable to give under conditions of duress; and should the person asking anger the giver by impolite behaviour, it is also a thousand times better to forgive than to give him a charity which is followed by giving him pain. Allah Almighty is Himself Ghani غنی and Halim حلیم ، need-free and forbearing. He needs nothing from anyone. One who spends does so for his own good. That being so, an intelligent human being should keep this in mind while spending in the way of Allah, that he is not favouring anybody, and that he is spending for his own good. And should one sense ingratitude on the part of people treated well, he should subject himself to the divine attribute of 'forbearing', show obedience and forgive and forget.