Hi,
One's first philanthropic obligation is to one's own family. Therefore, communal funds should not be used to support needy people if they have relatives who are able to aid them.
(Shulchan Aruch Choshen Mishpat 257:8)
[I can't think that this rule would apply where the wealthy relatives refused to assist - but the Shulchan Aruch does not discuss that case.]
Have a great day,
Mordechai
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