Re: Zakaat.
As far as I know, you have heard right. i.e it should be family first and then as local as possible.
interesting read
“Zakah is a basis for achieving social solidarity in the Islamic countries. Such fact should be used when displaying the facts and fundamentals of this true religion. Zakah money should be used in liberating any Islamic occupied territories. Zakah should originally, as confirmed by the Prophet’s Sunnah and behavior of his Companions, be distributed among the poor living in the region from which Zakah money is collected. Extra funds can be transferred to another town. This excludes the conditions of famine, disasters, and worse living conditions, where it is a must to transfer the Zakah money to those who need it most whether groups or individuals.”