This isn't the sexiest use, but I toss them into my
compost.
I usually have boiled the bones previously for stock so there is some processing to the bone, but nothing dramatic.
I have heard you can do a vinegar soak on the bones to extract the calcium and leave them bendy, but this might take multiple days. I'm unsure how someone would make use of vinegar/calcium liquid but perhaps someone has more imagination than me!
I might have remnants after one full cycle of composting depending on how big/what part of the bones I have but never had issues on adding them into a second round.
I live in close proximity to neighbors, and I never had an animal/smell issue. You just want to keep the amount of bones proportionally small to the bulk of the compost ingredients. Put them near the core and let them cook!