Source
The mitzvah of giving mishloach manot is spelled out in the Book of Esther, which enjoins the Jewish people to observe the days of Purim "as days of feasting and gladness, and sending portions of food to one another, and gifts to the poor" (9:22). This verse refers to two different mitzvot: the sending of two different, ready-to-eat foods and/or drinks to one friend (known by the Hebrew term, mishloach manot), and the distribution of two charitable donations (either money or food) to two poor people.
In actual practice, many individuals fulfill the first mitzvah themselves (by sending food gifts to friends, neighbors, relatives, etc.), and the second mitzvah by contributing to charitable organizations which distribute money or food to the poor on Purim day.
Poor people are also required to give mishloach manot. One who cannot afford to buy food for his friend may exchange his own food with that of his friend — this fulfills both their obligations.
This mitzvah may not be fulfilled by giving items other than food. Money or other material items cannot suffice. Only food gifts fulfill this mitzvah.
Read more about this topic: Mishloach Manot
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