My vote is that it is definitely OK. If you are giving someone something free I think it is perfectly fine to give them a magazine that you have used and taken things out of. The receiver is getting what ever is still in the magazine free. I would imagine anyone on a limited budget would be grateful too for whatever would be there. And if there is something listed that isn't in it the person could check out local library to see if they have past copies that they could make a copy from. My suggestion would be local guilds where members could help themselves as well as Senior centers, they could also be a free giveaway at a quilt show.
There have been a couple of board members who were helping some quilters that lost everything in Hurricane Sandy get some supplies, fabric etc. One was in the Carolina's and one was in the Long Island area-these were the 2 I knew about, there may have been others. But passing onto someone that lost everything might be another good home for them.
And we have a monthly Secret Pal swap here on the board and often magazines are past on through those exchanges too.