What do all you ladies do with the clothes your baby outgrows??
I lend them to friends and once I know I won't need them any future children I'll give them to friends.
Put them in bins for future use.
Either just keep them in the back of the closet or bring them to second hand stores!
bins, lots and lots of bins
We are saving up for a children's consignment that happens 2x/year. It's a BIG deal for everyone around here, and you can sell your stuff for a pretty penny compared to a yard sale for instance. We can also sell gear, furniture, toys, etc. at this consignment, so we're saving it all. The "deal" is that you work 2 full days at the consignment (which goes on for 2 weeks) to sell your stuff, and they get 8% of the profits...not bad at all! If we know someone that is need of clothes for the sizes we have, we give it to them instead (people we know at church mostly). For the clothing we are given that is used, we hand all of that back down to someone else.
Search in your web engine and see if any local annual or semi-annual consignments pop up. I never knew about any of these consignments until I was pregnant.