See: resale and donation laws
UPDATE: The New York City Council 
passed 11 Local Laws in 2010 to update and expand the NYC Recycling Laws. This law is part of the update.
Law: NYC Administrative Code (Search for Title 16, Chapter 3, Section 16-310.1: Textile reuse and recycling program, Section 16-324: Enforcement and Title 10, Chapter 1: Public Safety) PDF version
Summary: Local Law 38 of 2010 amended the NYC Recycling Law to establish a citywide textile reuse and recycling program that provides for the recovery of textiles by placing department-approved publicly accessible textile drop-off bins at convenient drop-off locations for all city residents. The law defines labeling requirements for the bins and reporting requirements for textiles collected. Local Law 34 of 2010 defines penalties for impermissibly placed collection bins.
While the use of collection bins to accept items for donation is voluntary, Local Law 31 of 2007 establishes requirements for the siting of any outdoor container (other than those placed by a government entity) that enables the public to deposit items for donation, such as clothing.
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