[Where to Disburse the Pilgrim’s Charity]

Answer—and Allah grants success: The scholars of the madhhab said: Everything that becomes due in Hajj—be it dam (blood sacrifice), charity, or monetary value—the place of its disbursement is the inviolable Ḥaram (except fasting), if it is due as a fidyah, expiation (kaffārah), compensation (jazāʾ), or the like; and the dam for saʿy may be [slaughtered] wherever he wishes—except for the three days’ fast in the case of the mutamattiʿ.
I say: One can argue for the madhhab’s view by noting that the charity or monetary value due from the pilgrim takes the ruling of a substitute for the dam, and so it should be disbursed where blood-sacrifices are disbursed.
As for fasting: although it is a substitute for the dam, no benefit of it accrues to the people of the Ḥaram.
Moreover, a substitute is not restricted to the location of what it substitutes for except by proof—as in the fast of the mutamattiʿ. Specification of place has come only regarding blood-sacrifices, not regarding food and fasting—just as in His saying concerning the compensation for killing game: “…as an offering delivered to the Kaʿbah, or an expiation: feeding the poor, or the equivalent thereof in fasting—so that he may taste the consequence of his deed.” [al-Māʾidah:95]. And His saying: “…and do not shave your heads until the sacrificial animal reaches its place of sacrifice.” [al-Baqarah:196]. And His saying: “Then its place of removal is at the Ancient House.” [al-Ḥajj:33]. The apparent sense of the Qur’anic proof is the permissibility of charity and fasting outside the Ḥaram.
Source : Min Thimār al-ʿIlm wa al-Ḥikmah vol.1