Musar for Sukkah 98:9

And it [gemiluth chasadim] is one of the three things on which the world stands, as we find in Avoth, Chapter 1: "The world stands on three things: on Torah, on Avodah (the sacrificial service), and on gemiluth chasadim." And it is equivalent to sacrifices. As stated in Avoth d'R. Nathan (4:4): "Whence do we derive this for gemiluth chasadim? It is written (Hoshea 6:6): 'For I desired chesed and not sacrifice.' The world, ab initio, was created only with chesed, as it is written (Psalms 893): "For I said: 'The world will be built through chesed.'" Once, R. Yochanan b. Zakkai went out of Jerusalem and R. Yehoshua went after him and saw the Temple in ruins, at which he said: "Woe unto us, the place where our sins were atoned is in ruins!," at which R. Yochanan responded: "My son, do not despond. We have an atonement equivalent to it. Which? Gemiluth chasadim, as it is written: 'For I desired chesed and not sacrifice!'" (See Succah 49b, to the effect that [according to R. Elazar) charity is greater than sacrifices; how much more so, gemiluth chasadim!) It [gemiluth chasadim] is greater than the mitzvah of tzedakah [charity], as R. Elazar said (Succah 49b): "Greater is lovingkindness than charity, as it is written (Hoshea 10:12): 'Sow for yourselves by charity; reap by lovingkindness.' If one sows, it is not certain whether or not he will eat; but if he reaps, he will assuredly eat." "The Rabbis taught: 'In three respects, lovingkindess is greater than charity: Charity [is conferred] with one's wealth; lovingkindness — both with one's wealth and one's body. Charity — to the poor; lovingkindness — both to the rich and the poor. Charity — to the living; lovingkindness — both to the living and the dead.'" And it is one of the things, the fruit of which one eats in this world, with the principal remaining for the world to come, as we find in Peah I.

R. Eleazar stated, acts of kindness are greater than charity, for it is said (Hoshea 10:12): "sow to yourselves according to your charity, but reap according to your kindness (Chesed)" (Sukkah 49b).