I would say that doing charity works /donations make others' life better, (to a certain extend which may or not create impact), and indirectly it makes you feel better when you see faces with smiles.
Action for thought:
Imagine you are walking down the street to a shop and you saw a homeless person there. You are walking with your friend and you felt like donating some money. You took your RM Y out of your pocket and wanted to pass it over to the person but you could not do it because you felt that your friend will question you and be against it. In simple words, you wanted to avoid any further conversations about it.
Then it came to another chance when you encountered the same homeless person there as you return to your car. You take your Y amount and pass it to that person. You walk past by with a sense of fulfillment and contentment though you had been worried about how matter Z will resolve.
A few days later, the worry that you were having earlier resolved in a way that you have never imagined and of course with a positive outcome.
I believe rather than you spending heavily on items/stuff that you don't really need, you may donate it to people in need. That's when you feel genuine happiness. Try it to find out yourself.
You did not lose, but you gained.
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