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Can titled players give their title back?

If you meet the requirements (rating) then you can apply and pay for the registration. Same with arbiter and organizer titles, Elo evaluation and so one. No big deal.

Probably in some cases your federation is gonna pay for it.
You have to apply for the title and pay a modest fee for it. If you do not apply you do not get the title awarded. A friend of mine had the required norms and rating for IM, but did not want the IM title as he wanted IGM right away. Later he came to his senses and applied for the IM norm, but he never became IGM.
Wikipedia on Grandmaster: The abbreviation IGM for International Grandmaster is also sometimes used, particularly in older literature.
I think the designation International Grandmaster may be to distinguish it from "national" Grandmasters, such as the title awarded in the Soviet Union. But most players who got the soviet Grandmaster title also got the FIDE Grandmaster title.
I was awarded a title automatically in the 1970's...before some of these qualifications arose...I do not play rated games anymore. My daughter is around 1900 now and avoids tournaments with all girls, etc., where these titles are part of the prize fund. She asks, horrified:
"am I handicapped or something".

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