What to do with outgrown clothes you can not part with?

Baby I started a nursery and he is not too happy about it. He cried a lot, so they asked me to bring in his favorite toy, but he had none so they told me to bring something in anyway. I went home and picked the softest plushie we had and hoped it would work and he’d accept his new friend. And he did! The bonded instantly, and he’s been sucking on his ear ever since.
When I cleared out the closet this weekend I found some tiny, outgrown clothes I just knew I wouldn’t be able to throw away and on Sunday night I decided to make a surprise gift for the new friends. Ilija is already into dressing, always trying to pull socks onto his head. I can tell you he was really pleased with what I came up with and it made him laugh out loud.

Blue vest is on the sheep because Ilija went nuts when I put it on his friend and started screaming NO, NO, NO! He loved the little overall but hated the vest for some reason. If I could see into their brains for a minute or two…

What do you do with the clothes your kids have outgrown?