In most houses the 20/80 rule applies, you use 20% of your stuff 80% of the time. I always realize this when we go on vacation and are able live with a suitcase full of items. Do I really want that item I still use once a year, and feel that I "need", taking up space in our house and lives? Not really. We have plenty of garage storage for the holiday items that can be packed up and brought out at the right times, but we're low on inside storage space-so I've decided unless I use it at least once a month, it's out.
My plan is to first give away the items I know friends can use, then sell what I can on craigslist and hold a garage sale. Whatever remains will then be donated to our church, the pregnancy crisis center or a family in need. In the past I have dropped car loads off at Goodwill, and while I do think it's a good organization, I don't like that they charge people $5 for a shirt. A ridiculous amount for someone who is in need, I would much rather give it away.