We kept a couple very special otfits, for each kid to pass on to their babies, if they so choose. Did a little bit of hand me downs to my cousins who hd girls a couple years after me.
Other than that I took nearly EVERYTHING to our local ( next town over, a bit bigger town than ours) kids and baby consignment shop. I LOVE IT. She does only take good stuff - no stains, holes, tears, etc. But lets face it how many little baby things get torn and really stained... maybe a few, but most of ours looks like new. Our store does 50/50% consignment fee, and her sales prices are higher than garage sale prices, so in the end I make more money from her store selling my stuff than I would by having a garage sale myself, with a fraction of the prep work and hassle. All she asks is that you give her the stuff clean and neat in boxes or bags marked with your consigner account number. I always wash and fold before getting rid of anything anyway, I just box up the too small stuff in diapers boxes till it is the appropriate season to take it in to the store ( they only take current season stuff - fall/winter in the cold months and spring/summer in warm time) .
THey take toys and "gear" all the time, but you have ot call ahead ot make sur ethey have room for it, Monday I am taking in a Little Tykes Kitchen , and Workbench, a Thomas the Train Toddler bed, and a Jogging stroller. I make about $300 cash, or so, a year from there ( most of it i turn right around and spend right there in the store to buy the next size up for my kids - it is agood deal). It is definitely worth it to do, it is minimal preparation, you get the money, you clear out your storage space in your house, and someone else gets to buy nicer things for a smaller price, rather than having to spend the money on brand new in this economy.
Craigslist I have had good luck buying, but not on selling - buy I live out in the country ( well actually in a tiny town of 1200 people) so I think people don't want to come out here to get stuff, I think I would be more successful if I lived in a bigger city.