E.F.
My sister gives me all her hand-me-down's. I appreciate it so much, I have offered to pay her for them, but she refuses.
She has two kids, a boy and a girl. I then have three girls, younger than hers and one boy toddler. So she has stored all the boy clothes at my moms, for whomever wants them. It has been a good arrangement, I have two other sisters and all of us just share the oldest sisters kid clothes. If she told me she could use the money, and explained her situation, I would gladly pay for them, because it would still be less than buying them new and I would not be offended.
I like what some of the other moms have said. Pick out a few good staples and things you know they need or would want and give them those. Or pass on what has been given you and then tell them you are going to sell the rest and they can buy them first if they want them.
Good luck!
E.