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You can take apart toys, wash the good parts, and put in small bags and title them, "matchbox wheels and other small wheels", "motors", "battery holders"
"misc battery covers", "craft parts" or whatever.
You can take apart toys, keyboards, and games missing letters or numbers, and exchange or sell these for crafts. Metal parts, cords, and electronic pieces can be recycled at many places.
Look at all the ideas on this site, think creatively when getting rid of things. Recycling includes re-purposing things. It also can give your kids some useful things to do where they can make money too!