Two people give identical amounts to someone in need. The first genuinely seeks Allah's pleasure and the person's welfare; the second only wants public admiration. The visible donations match, but the purposes behind them differ.
Three questions should be kept distinct:
Action — What actually happened?
Intention — Why did the person do it?
Legal and ethical status — Was the action itself permissible and sound?
A good intention can turn permissible conduct into an act of devotion, but intending to give charity does not justify stealing someone else's property. Equally, another person's inner intention cannot be conclusively known from outward appearances alone. The hadith calls the individual to examine their own purpose.