(and I guess clean)

May be a difference between regions, but thrift doesn't clean clothes around me. You're expected to donate clean clothes; But if it's visually in such rough shape that it needs to be washed first, it's 'rag out', otherwise it goes on the sales floor. Laundry is a huge expense for a nonprofit; instead, they expect you to wash it yourself before wearing it.

I'm not aware of any seprate clothes recycling facilities around me, and can't find one with a quick search. Just the typical thrifts.