I recycle everything that I can - magazines to doctor's offices, old & unwanted books to a local bookstore (they always have free boxes out front & have a huge used/resale section. You get credit to use to purchase other used books. I have more credit than I will ever be able to use!

), blankets to the homeless shelter, etc.
I put things in boxes as I destash, and put the boxes in the garage for a yard sale. I am lucky that I have a 5 car garage (it used to be the old carriage house to my old circa 1855 house) that I can store stuff until I have my yard sale. I put anything and everything into that sale and all of the money is used as spending money for out Disney trips. I usually make around $1,000.00per sale. I spend around $100.00 on the ad alone and people start to show up for it hours before hand or the night before. Advertising big helps! I swear, anything anyone doesn't want at school (I'm a teacher) ends up in that yard sale!

I also price things to move - clothes are usually $1.00 each piece, toys are around $5.00 each (and come with the paperwork they came with!

), and anything we replace in the house (i.e. - ceiling fans). People are always looking for stuff for cabins up north (we live in Michigan). (Some advice here - try to clean anything you put into your sale and match it up. For example - I pin outfits together so pieces don't get separated from each other. Also, mark anything that is missing or how many pieces are included.)
I do donate things that don't sell after a couple of sales. Goodwill and Purple Heart (who picks up unwanted items) are two I use alot. I do store stuff from year to year if I think it will sell - again lucky for the large garage! I also take alot to school - so ask you kid's teachers. We are always looking for puzzles, books, games, etc. for those indoors recess days. We can also use game pieces from old games and puzzles where pieces are missing for crafts. Heck - my art teacher at school loves those old tupperware containers to store crayons, colored pencils, etc. in. If I do take something into school, I leave it in the teacher's lounge with a sign that it is up for grabs. If no one takes it after a day or two, I just toss it there.
I very seldom throw anything away. It either gets sold, donated, or given away. I am well known to toss in lots of extras at my yard sale. I once had a woman show up who had just gotten custody of her grandchildren and she needed clothes for them badly. She made out like a bandit at my place I tell ya!

I would much rather have someone use all of those clothes than have them sitting in boxes in the garage.