In The Name of Allaah, The Most Merciful, The Bestower of Mercy
Shaikh Saaleh Al- Fawzaan [hafidhahullaah] was asked about giving the Eed sacrifice money so that it is given to the poor and needy.
The Shaikh said that this will not be regarded as Eed sacrifice, rather it is regarded as Sadaqah. The Eed sacrifice is to be done where one is resident with his children as a means of seeking closeness to Allaah. And what is intended by the Eed sacrifice is not to give money, rather it is to offer sacrifice during the days of Eed.
Had it not been the case that this is what is intended, it would not have been specified within the days of Eed. As for giving in charity, it is something one can do throughout the year. O brother! Do not change the Sunnah with the so called proof that it is better for the people [i.e. the claim that it is better to give the Eed sacrifice money to the poor], becauss such views [or opinions] do not enter into affairs related to the Sharee’ah.
Paraphrased. Listen to audio in the link:
Another Similar Fatwa of the Shaikh in this link