Once you've purged your closets from your fashion tragedies past you may find that it is difficult to say goodbye. It's not that you don't want to let go of your 1986 prom dress with the puffy sleeves — it's just you're not sure what to do with it. The question is do you donate or do you resell?

Donating to charity

Donating used items can be less labor intensive than selling them and offers feel-good rewards, in addition to possible tax deductions. Thrift stores accept the widest variety of items including clothes, books, small appliances, furniture, kitchenware, toys and home decorations.

It's a good idea to call ahead and ask what items an organization will accept. (Often, that varies because of the organization's inventory and storage space.) Donate only gently used, resalable items that are clean and in working order.

Some of the more well-known non-profit organizations include:  

Reselling

If you're having a hard time giving up those items you invested in but have now outgrown, reselling might be a really great option. There are few places you can consider doing this.

• Consignment Shops: Second-hand stores that offer used goods at a lower price than new. The dealer pays the seller upon sale of the goods. Merchandise often sold through consignment shops include antiques, athletic equipment, automobiles, books, clothing (especially children's, maternity, and wedding clothing which are often not worn out), furniture, music, musical instruments, tools and toys.
• Vintage Clothing Stores: A trend in fashion consisting of a new interest in old clothes, generally brand names or custom-made garments that are typical items of an era that have a certain style and design value. The '50s era, for example. The New Look is especially popular. This may be related to the fact that clothes were not mass produced in earlier eras.
• Online: Anyone eBay? Selling clothes on the Internet has become huge. Just remember to include a picture...it doesn't hurt to include the garment's measurements either.