They work best scratched lightly into the soil. All I do throw outside, on the one garden by the kitchen door, get scratched into the soil when I clean the garden in spring and it's always the first to be cleaned because it's our favorite. We do have a compost pail in the attached garage but when it was inside it drew too many fruit flies. We have six big compost bins for the garden and the contents of the pail keep getting added to the compost but during this frigid, freezing, snowy winter it isn't easy to dig through the compost to add more goodies so we're also using a heavy duty plastic bag until the outdoor compost defrosts...maybe by April with the weather this year.
This is the garden that benefits most from the coffee grounds only because it's so close to the kitchen door.