What is the effect of giving 'Dana' to the gift recipient's mind?

What is the effect of giving 'Dana' to the gift recipient's mind?

Well, the recipient can become attached to receiving gifts. But this is not the fault of the giver. This is due to the recipient's craving and clinging. It's up to the recipient to not become attached to gift-receiving and to practise moderation in accepting gifts.

The Buddha told monks not to be too attached to gifts and alms that they receive, and be moderate in accepting gifts. Monks should be contented with what they have. Also monks accepting gifts is a chance for the lay people to make merit. The sutta quotes below provide more info.

In addition, AN 3.94 and AN 8.13 also define qualities a monk should have, that would make him worthy of gifts, offerings and respect from others.

Don't be addicted to luxury - from DN 2:

"Whereas some brahmans and contemplatives, living off food given in faith, are addicted to high and luxurious furnishings such as these — over-sized couches, couches adorned with carved animals, long-haired coverlets, multi-colored patchwork coverlets, white woolen coverlets, woolen coverlets embroidered with flowers or animal figures, stuffed quilts, coverlets with fringe, silk coverlets embroidered with gems; large woolen carpets; elephant, horse, and chariot rugs, antelope-hide rugs, deer-hide rugs; couches with awnings, couches with red cushions for the head and feet — he abstains from using high and luxurious furnishings such as these. This, too, is part of his virtue.

Don't have cravings for alms and gifts - from Snp 2.11:

"Associate with good friends and choose a remote lodging, secluded, with little noise. Be moderate in eating. Robes, alms-food, remedies and a dwelling — do not have craving for these things; do not be one who returns to the world. Practice restraint according to the Discipline, and control the five sense-faculties.

Accept alms and gifts in moderation - from AN 7.64:

"And how is a monk one with a sense of moderation? There is the case where a monk knows moderation in accepting robes, almsfood, lodgings, & medicinal requisites for curing the sick. If he didn't know moderation in accepting robes, almsfood, lodgings, & medicinal requisites for curing the sick, he wouldn't be said to be one with a sense of moderation. So it's because he does know moderation in accepting robes, almsfood, lodgings, & medicinal requisites for curing the sick, that he is said to be one with a sense of moderation. This is one with a sense of Dhamma, a sense of meaning, a sense of himself, & a sense of moderation.

Be contented with what you have - from AN 4.28:

There is the case where a monk is content with any old robe cloth at all. He speaks in praise of being content with any old robe cloth at all. He does not, for the sake of robe cloth, do anything unseemly or inappropriate. Not getting cloth, he is not agitated. Getting cloth, he uses it not tied to it, uninfatuated, guiltless, seeing the drawbacks (of attachment to it), and discerning the escape from them. He does not, on account of his contentment with any old robe cloth at all, exalt himself or disparage others. In this he is skillful, energetic, alert, and mindful. This, monks, is said to be a monk standing firm in the ancient, original traditions of the Noble Ones.

Furthermore, the monk is content with any old almsfood at all. He speaks in praise of being content with any old almsfood at all. He does not, for the sake of almsfood, do anything unseemly or inappropriate. Not getting almsfood, he is not agitated. Getting almsfood, he uses it not tied to it, uninfatuated, guiltless, seeing the drawbacks (of attachment to it), and discerning the escape from them. He does not, on account of his contentment with any old almsfood at all, exalt himself or disparage others. In this he is skillful, energetic, alert, and mindful. This, monks, is said to be a monk standing firm in the ancient, original traditions of the Noble Ones.

Monks accepting alms and gifts provide a means to lay people to make merit - from MN 39:

The Blessed One said, "'Contemplative, contemplatives': That is how people perceive you. And when asked, 'What are you?' you claim that 'We are contemplatives.' So, with this being your designation and this your claim, this is how you should train yourselves: 'We will undertake & practice those qualities that make one a contemplative, that make one a brahman, so that our designation will be true and our claim accurate; so that the services of those whose robes, alms-food, lodging, and medicinal requisites we use will bring them great fruit & great reward; and so that our going forth will not be barren, but fruitful & fertile.'