Used goods that are passed on to family or friends for free are called hand-me-downs. Aside from showing generosity, I think we give out hand-me-down stuff to avoid wastage of things that could still be useful to other people.
I have given out used things before and will continue to do so with my excess, may it be clothing, accessories or household items. I have also experienced receiving hand-me-downs from relatives and friends. When I was a kid living in the province, for instance, I’d get pre-loved clothes from my cousins living in Manila every summer. Yes, every summer vacation, they’d visit us and give me hand-me-downs (that were still in mint condition!) to my childish delight.