I used to volunteer as a sorter- sifting thru & pricing donations. I couldn't get over how many things they tossed (because of a tear or a stain). I was also
on the board of directors for a while...when you run a pet shelter with all volunteers (except for a few paid employees in the store as clerks) you have to find
all the savings you can. Recycling saved us on the cost of trash collection, & then made us more $ by selling cheaply things they'd have tossed out in the past.
Used sheets are one of those things with a high "ick factor" [for human use] if they have any sort of stain. We also had interest from a local plant nursery that
wanted to buy the sheets/drapes we couldn't sell, to wrap & transport their trees & shrubs in: buying new burlap gets so expensive for them! I've also seen the
local Salvation Army sell "big bags of rags" (like for auto mechanics to use).
I personally love shopping in thrift stores...I donate in the back door, & come out the front door with hopefully less than I came with. Useful stuff for good causes.