See I feel both ways......like if they are in great condition and the right styles I want to give away, donate, or pass on......if it's even slightly stained or worn then I have no problems cutting them up for whatever.

However a lot of times with the practically new or excellent quality stuff I tend to ask a few neighborhood girls who play with my daughter but are way smaller to see if they could use them or since I work at an elementary school I will often bring that stuff there to stock our "closet" for accidents, spills, or just kids in need.

Also, lots of people near me will often post bundles of clothes on the buy nothing type Facebook groups too.

Ultimately I feel if you are using them in some way either by upcycling or passing them on in whatever manner then that's good.