Answered by Shaykh Faraz Rabbani
Should you keep and use the gifts given to you by your neighbours or give them away?
In the Name of Allah, Most Merciful and Compassionate
May Allah’s peace and blessings be upon His Messenger Muhammad, his folk, companions, and followers
Walaikum assalam wa rahmatullah,
When one takes possession of a gift, it enters one’s property and one can then use it or dispose of it as one sees fit. [Sharh al-Majalla]
This is in terms of the limits of law and rights. However, excellence and propriety entails that:
(a) one express one’s appreciation and thanks for the gift, because the Messenger of Allah (peace and blessings be upon him) said, “Whoever fails to thank people has failed to thank Allah.” [Abu Dawud (4811) and Tirmidhi (1955); Tirmidhi deemed it sound and rigorously authenticated (hasan sahih)]
(b) if one chooses to give away the gift, one should do so with discretion and wisdom, to avoid unduly hurting the feelings of the one who gave the gift.
And Allah alone gives success.