I used to donate nice clothes there a LOT, but the last time I was in the back (warehouse) part of the store where the bigger things are sold, I noticed this huge machine like a trash compactor-- it actually BALED UP loads of clothing into gigantic 'bricks'. I have no idea what they do with these (landfil?) but the back part of the warehouse was stacked to the roof with them. My guess is they don't even look at the clothes you donate... just throw it in the baler!*****************
Our goodwill bin store has a bailer. The clothing that they have been unable to sell in their stores goes to the bin store. You can go to the bin store and buy stuff by the pound. They bale up the clothing they can't sell and it goes to the rag man.