Early in the text, James tells the reader that God “gives generously to all without reproach.”
Parsing this phrase, we note that God “gives,” i.e., He does not ‘pay,’ and it is not a quid pro quo, but rather an unearned, unmerited, freely-given gift or present. This is the meaning of the word grace.
God gives “generously,” giving more than is necessary or usual or expected. This is kindness. If God gave us merely our physical bodies and enough sustenance to keep us alive, that would already be a gift. But He gives more than that.
He gives “to all,” emphasizing that God cares for each person. Every human being is the object of God’s affection. George Stulac writes that, as James formulated his letter, one
fact of God’s character was his grace. He gives good gifts. We imitate God in this trait by graciously giving good gifts to others - even to those who are causing the trials in our lives, for we will give “generously to all without finding fault” (1:5). When we are treated unjustly and hurtfully, we will take our stand here: to rely on God to provide good gifts for us while we persevere in loving our enemies, doing good to those who hate us, blessing those who curse us and praying for those who mistreat us (Lk 6:27-28).
James continues by saying that “every good gift and every perfect gift is from above, coming down from the Father of lights.” Not only is a God a generous giver, but everything which is given or received finds its original and ultimate source in Him.
Not only does grace characterize God, but He is the unique initiator of grace in the universe. God is gracious, but He is also merciful. Ed Potoczak offers a familiar formula for defining ‘mercy’:
Justice is when someone receives what he or she deserves. Mercy is when they do not get what they deserve, but instead, they receive forgiveness.
Because all humans are imperfect, we all need forgiveness; God shows mercy to all. One aspect of God’s character, as described by James, is that He is a wellspring of both grace and mercy.