Why is a charity supposed to be able to magically conjure sales the original seller was unable to find?
I just think if it was as easy to doing this, there's already be nothing for regulators to be complaining about.
Corporations regularly price goods higher than demand in order to delay lowering prices or create artificial scarcity — see gas stations, rental collusion companies, and Prada bags, for example. Charities don’t have to sell clothes received at all to ‘pay’ the donator in tax credits. This law is about forcing corporations to one way or another deliver 100% of their finished goods to end users rather than diverting a massive fraction of that to waste streams, and charities can use clothes up to a point.
For example: if Nike is willing to destroy 100$ shoes, instead of selling them at 40$ discount, for brand protection, another shoemaker could try make identical shoes and sell them at discount. But the alternative shoemaker is not allowed to make identical shoes, this would infringe Nike trademark.