In the US, less than 20 percent of clothing donations sent to charities are actually resold at those charities.

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Notes:

The other 80 percent is sent to textile recyclers who then determine the next cycle of the garment's life. Of the material textile recyclers receive: 45% is reused (majority exported as secondhand clothing) 30% is recycled into rags 20% is recycled into fiber for home insulation, carpet padding, and filler in the automotive industry, 5% is discarded)

Council for Textile Recycling is a non-profit organization whose board includes textile recyclers.

Primary Source:

http://www.weardonaterecycle.org/about/clothing-life-cycle.html

Secondary Source:

This assumes that garment sold to the developing world are reused. This is not always the case and is an area that needs urgent research. Rags are also often single-use.