We "loaned out" a bunch of clothes to people in our church when we lived in DC. And, with the first kid we bought quality stuff (there for a while we dressed him from Nordstrom - then we learned...). Those clothes made the rounds for several years.
Now, our church in Richmond does a children's clothing consignment sale twice a year. My wife consigns all the stuff the boys have outgrown and uses her profits to buy "new" stuff. Other than what grandma buys the little one, that's all he wears. She refuses to spend more than $5.00 per item, and comes home with Ralph Lauren outfits that look like new.
God bless her! Mrs Stormhands and Mrs g'nad are very much alike in that department.
We give lots of stuff away, and have good friends with expensive taste that give us their old kids' clothes...score!!!