What’s the Difference Between Welfare and Tzedakah?

Mishlei 14:34:

צדקה תרומם גוי וחסד לאמים חטאת.

“Giving charity elevates the nation; the kindness of the nations is a sin.”

Rashi explains:

צדקה תרומם גוי, ישראל. וחסד לאומים חטאת, שהיו נוטלים מזה ונותנים לזה.

“Giving charity elevates the nation” – This refers to the Jews.

“The kindness of the nations is a sin” – who take from this one and give to that one (I assume the past-tense word “היו” is only due to the censor).

In short, Tzedakah is specific.