The Alter Rebbe begins by explaining the verse, צדק לפניו יהלך—"Righteousness will go before Him." He focuses on the word לפניו—which means not just "before Him" in a simple sense, but comes from the word פנימיות—"innerness." This teaches us that the act of Tzedakah isn't just an external deed, but it draws out and expresses the innermost point of the heart.

The word יהלך—"will go" or "will lead"—means that this inner dimension, the Pneumias haLev, is being led, is being brought forward, and is directed towards Hashem. Through Tzedakah, a person is able to take the deepest part of his heart and lead it to G‑d, connecting his inner self to the Divine.

After this inner movement, the verse continues: ישים לדרך ה' פעמיו—"He will set his steps on the path of Hashem." The Alter Rebbe explains that once the Pneumias—the inner heart—has been awakened and led towards Hashem through Tzedakah, the next step is to actually walk in Hashem's ways in practice.

This is as the verse says, והלכת בדרכיו—"You shall go in His ways," and also, אחרי ה' אלהיכם תלכו—"After Hashem your G‑d you shall walk." This means that in all the performance of mitzvos, a person is following in the footsteps of Hashem, aligning his actions with the Divine will.

The Alter Rebbe adds that Talmud Torah—the study of Torah—is equal to all the mitzvos, and is included in this path. So, the process is: first, Tzedakah draws out the inner heart and leads it to Hashem, and then the person follows that lead by walking in Hashem's ways through all the mitzvos, especially Torah study.

The Alter Rebbe now explains the unique power of Tzedakah. He says that all the mitzvos, when performed with the Pneumias haLev—the inner heart—are elevated to Hashem in a much greater and more powerful way than when they are done only with the Chitzoniyus haLev—the external heart.

When a mitzvah is performed only with the external heart, meaning it comes just from understanding and knowledge, without the inner fire and depth, then the elevation is limited. It lacks the special illumination that comes from above, the Ha'oras Panim—the shining of the Divine countenance.

But when the mitzvos are done with the inner heart, especially through Tzedakah, they ascend to Hashem with much greater force and reach much higher levels. This is the unique quality that Tzedakah brings to all mitzvos—it awakens the inner heart and causes all the mitzvos to rise upwards in a way that is malah malah—higher and higher.

The Alter Rebbe explains why this is so. The Panim Elyonim—the supernal countenance, or the Divine face—does not shine below, does not illuminate the lower worlds, except through an Isarusa d'Letata—an awakening from below.

This awakening from below is specifically accomplished through the act of Tzedakah, which is called שלום—"peace." Tzedakah is unique in that it brings about this illumination, this shining of the Divine face, because it creates a connection, a peace, between the Jew and Hashem.

The Alter Rebbe brings a verse from Tehillim: פדה בשלום נפשי—"He redeemed my soul in peace." He emphasizes the word נפשי—"my soul"—to highlight that it is the very soul, the innermost point of the Jew, that is being redeemed through Tzedakah and acts of kindness.

This redemption is not just a general improvement, but a true liberation of the deepest part of the person—the spark of G‑dliness within the Jew. Through Tzedakah, the soul itself is brought out of captivity and reconnected with its Divine source.

The Alter Rebbe continues and explains that this is also the reason why Tzedakah is called שלום—"peace." Through Tzedakah, peace is made between the Jewish people and their Father in Heaven.

This is as our Sages say: Tzedakah brings about a reconciliation, a union, between the Jew and Hashem. It bridges the gap and restores the relationship, making true peace between Israel and their Father in Heaven.

How does this peace come about? The Alter Rebbe explains that it is through the redemption of their souls—the souls of the Jewish people, which are literally a part of Hashem—from the hands of the external forces, the chitzonim.

By giving Tzedakah, a Jew is able to redeem his soul from these negative forces, from captivity, and reconnect it to its Divine source. This is the deeper meaning of the peace that Tzedakah brings—it is a spiritual redemption and restoration.

The Alter Rebbe gives special emphasis to the Tzedakah of Eretz Yisrael. He says that this is truly צדקת ה'—"the righteousness of Hashem"—in the most literal sense.

The verse says, תמיד עיני ה' אלהיך בה—"the eyes of Hashem your G‑d are always upon it"—referring to Eretz Yisrael. This means that the Pneumias—the inner dimension—of Hashem's Name is drawn into Eretz Yisrael in a unique way.

Another verse states, והיו עיני ולבי שם כל הימים—"My eyes and My heart will be there all the days." This teaches that Hashem's attention and love are constantly focused on Eretz Yisrael. Therefore, giving Tzedakah to Eretz Yisrael is especially powerful, as it connects the giver to the very heart and soul of the Divine presence in the world.

The Alter Rebbe concludes this letter by emphasizing the enduring power of tzedakah. He says that it is והיא שעמדה לנו—this is what has stood by us—to redeem the very life of our souls. Through the act of giving tzedakah, a person is able to free his soul from captivity, from all the forces that try to hold it back or push it off the right path.

This merit of tzedakah is not just a one-time effect. The Alter Rebbe says ותעמוד לנו לעד—it will stand for us forever. It ensures that our souls are placed in true life, חיים אמיתים, which means not just physical existence, but real, eternal life that comes from the source of all life, from Hashem Himself.

He explains that this is the meaning of the verse, יאר ה' פניו אתנו—that Hashem should shine His face upon us. The light and vitality that come from Hashem are drawn down to us through the inner dimension of our hearts, which is awakened and led by tzedakah. It's not just the external act, but the pnimiyus, the inner intention and connection, that brings about this illumination.

The Alter Rebbe ties this back to the earlier discussion: when a person gives tzedakah, he is not only performing a mitzvah externally, but he is also leading his inner self, his pnimiyus, to Hashem. This sets the direction for all his mitzvos, elevating them so that they all rise up to Hashem in a more powerful and elevated way.

He also points out that this is especially true regarding tzedakah for Eretz Yisroel. The tzedakah given to support the Holy Land is called צדקת ה'—the righteousness of Hashem—because it draws down the very essence of Hashem into the land, as the verse says, "My eyes and My heart are there all the days." This means Hashem's attention and love are constantly focused on Eretz Yisroel, and when we give tzedakah for its sake, we connect ourselves to that special divine attention.

Finally, the Alter Rebbe blesses that this merit of tzedakah should always stand by us, to redeem our souls from any negative influences, to keep us on the right path, and to ensure that our lives are filled with true, eternal life—the light of Hashem shining upon us always. He ends with a prayer that Hashem should always shine His face upon us, granting us this blessing forever. Amen.