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TheOtherDave comments on Be Happier - Less Wrong
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I buy cat food and give it to random cats I meet in the city. This has extremely good cost:benefit ratio for happiness. The food is cheap and I only give each cat a little, but the act of feeding the cat makes me happy for a few hours. Because those cats are not mine, I have no additional costs. Try to beat that! :P
I used to take peanuts to a nearby park to feed squirrels, in much the same spirit. It had the additional benefit that I could eat the peanuts myself if I wanted, and it caused passersby to look at me funny (as I would not-infrequently have squirrels sitting on my lap and rummaging curiously through my pockets).
My significant other keeps a garden, and we have several productive fruit trees that we enjoy getting fruit from. Squirrels take a significant amount of fruit, and cats leave unwelcome surprises in the garden.
We trap squirrels and remove them to county parks. (We don't do anything about the cats.)
Marginally increasing the frequency of squirrels and cats is a negative externality for us. I'm glad you aren't feeding squirrels (or cats) near us.
(nods) Sounds like it works out well for both of us.