I have yet to recycle my baby's gifts, but I think it's time! If it's something appropriate, I would try my best to use it, especially if it's from a close friend (and you know some friends do take a lot of effort to choose a gift for the child!) If it's stuff like clothes too small by the time we get to it, I would pass it on, but will let the recipient know it's not something I have gotten specially from stores. I have not received many toys and such, but yes, chances are, by the time toddlerhood comes, would likely be giving away unwanted and duplicate toys to charities. Storage is a serious issue in HK! I think what might work would be a network of mommy friends to do some toy/clothes/book exchange so we don't have to buy and store so much! =)