used towels and blankets can be donated to animal shelters

many thrift shops will sell too-shabby items to rag merchants, so they do not go to waste. some items are given to other thrift stores so eventually they make their way down the chain . you never know what people will buy; I buy clothing that is not wearable and re-use the fabric for other purposes.

anything that I haven't used in the last year will be donated

Also, my aunt makes quilts out of old shirts, ties, etc. for some friends that lost family members to cancer.

We donate clothes to charity, but tattered blue jeans, holey socks, underwear and stuff get repurposed. I made my nieces some purses out of blue jean legs, used the old socks and underwear to mark trees on our land, so that the mowers would not run them over. Socks that have lost their mates and shirts that ate stained, I just used as fill in some outdoor cushions for the patio furniture.