This excerpt is taken from Sheikh Farooq Rafi Sahib's book Qurbani, Aqiqah, and Ashra Zil-Hijjah.
The use of sacrificial skins is the same as the use of the meat of the sacrifice, that is, it is permissible to use the skins of the sacrifice for personal use, to give as charity, or as a gift. The evidences for this are the same as those for the detailed rulings on the meat of the sacrifice.
Using the skin of the sacrifice for personal use:
It is permissible to use the skin of the sacrifice for personal use. The evidence for this is the hadith of Aisha (may Allah be pleased with her) that one year, on the occasion of Eid al-Adha, when some poor Bedouin people arrived, the Messenger of Allah (peace be upon him) prohibited using the meat of the sacrifice after three days and instructed that after three days the meat of the sacrifices should be given as charity. The following year, people asked: O Messenger of Allah!
إن الناس يتخذون الأسقية من ضحاياهم ويجملون منها الودك
"Indeed, people make water-skins from their sacrifices (skins) and melt fat from them (then the Prophet (peace be upon him) permitted eating, storing, and giving the meat of the sacrifice as charity after three days)."
Reference: Sahih Muslim: 1971. Sunan Abi Dawood: 2812. Sunan an-Nasa'i: 4436
This hadith is clear evidence that it is permissible and Sunnah to use the skins of sacrifices for personal use.
It is not permissible to sell the skins of sacrifices:
It is not permissible for the owner of the sacrifice to sell the skin of the sacrifice, and the reward of the sacrifice of the one who sells the skin of the sacrifice is nullified. Therefore, the owner of the sacrifice should either give the skin of the sacrifice as charity or gift, or keep it for personal use.
❀ It is narrated from Sayyiduna Abu Hurairah (may Allah be pleased with him) that the Messenger of Allah (peace be upon him) said:
من باع جلد أضحيته فلا أضحية له
"Whoever sells the skin of his sacrifice, his sacrifice is not accepted."
Reference: Hasan: Mustadrak Hakim: 390/2. Sunan Bayhaqi: 294/9. Narrated by Abdullah bin Ayyash Saduq
Benefits:
① Hafiz Munawi, may Allah have mercy on him, states: The meaning of this hadith is that the one who sells the skin of the sacrifice does not receive the reward of the sacrifice.
Reference: Faiz al-Qadeer: 121/6
② Ibn Qudamah Hanbali, may Allah have mercy on him, states that selling the meat and skin of obligatory and voluntary sacrifices is impermissible, because this animal has been designated for slaughter. Imam Ahmad, may Allah have mercy on him, states that selling the meat of the sacrifice, any kind of skin, or any part of the sacrifice is not permissible. He says how can the sacrifice be sold when it has been dedicated to Allah Almighty.
Reference: Al-Mughni with Al-Sharh Al-Kabeer: 112/11
Giving the skin of the sacrifice as a fee:
It is not permissible to give the butcher the sacrificial skin as a fee; rather, the one performing the sacrifice should pay the butcher's fee themselves.
① Sayyiduna Ali (may Allah be pleased with him) states:
أمرني رسول الله صلى الله عليه وسلم أن أقوم على بدنه، وأن أتصدق بلحمها، وجلودها، وأجلتها وأن لا أعطي الجزار منها وقال: نحن نعطيها من عندنا
"The Messenger of Allah (peace be upon him) commanded me to oversee his sacrifices and to give the meat, skins, and tripe as charity, and not to give the butcher anything (as a fee), and the Messenger of Allah (peace be upon him) said: 'We will pay him the fee ourselves.'"
Reference: Sahih Muslim, Book of Hajj, Chapter on Charity of the Meat of Sacrifices: 1317. Sunan Abi Dawood, Book of Manasik, Chapter on How to Slaughter the Animal: 1769. Sunan Ibn Majah, Book of Manasik, Chapter on Who Slaughters the Animal: 3099. Musnad Ahmad: 79/1
② Sayyiduna Ali ibn Abi Talib (may Allah be pleased with him) states:
أن نبي الله صلى الله عليه وسلم أمره أن يقوم على بدنه، وأمره أن يقسم بدنه كلها، لحومها وجلودها وجلالها فى المساكين، ولا يعطي فى جزارتها منها شيئا
"Indeed, the Prophet (peace be upon him) commanded them to oversee his sacrifices and to distribute the meat, skins, and tripe of the sacrifices, and not to give them anything as a fee for slaughtering."
Reference: Sahih Bukhari, Book of Hajj, Chapter on Giving the Skins of the Sacrifices as Charity: 1717. Sahih Muslim, Book of Hajj, Chapter on Charity of the Meat of Sacrifices: 1317
Benefits:
① It is a recommended act to give the meat, hide, and the bag of the sacrifice as charity. The butcher should not be given the meat, hide, or bag as wages, because giving any part of the sacrifice as wages is a compensation for his labor, which would be like selling the sacrifice, and selling the sacrifice is not permissible (therefore, no part of the sacrifice should be given as wages). It is permissible to take wages for slaughtering the sacrifice.
Reference: Sharh An-Nawawi: 65/9
② The prohibition of giving wages to the butcher from the sacrifice means that no part of the sacrifice should be given to him as wages. Imam Al-Baghawi (in Sharh As-Sunnah) states that if the owner of the sacrifice has fully paid the butcher the wages for slaughtering, then if the butcher is poor, it is permissible to give him charity just like giving charity to other poor people. There is no harm in giving charity to such a butcher. Other scholars say: giving the butcher any part of the sacrifice as wages is prohibited because it is compensation, but it is permissible to give him from the sacrifice as charity, gift, or in addition to his wages. However, the fact that the Prophet ﷺ did not give the butcher any wages from the sacrifice indicates that it is better not to give the butcher charity from the sacrifice either, because this charity might reduce the wages and take the form of compensation (so it is better to avoid giving the butcher charity or gifts from the sacrifice).
Reference: Fath Al-Bari: 702/3, 703
③ The one performing the sacrifice should give the hide of the sacrifice as charity to the poor and needy. Then they may use it personally or sell it if they wish; this is the preferred method. However, if they sell the hide and give the price to the poor and needy, this is also permissible in any case.