Okay, now I feel guilty.
Why? If they're in good condition, collectible or otherwise useable, why not? Hand-me-downs can make good gifts. (So speaks the daughter of auction-lovers. Seriously the bulk of the items in my parents' house are defintely not new, very used and very nice.)
It's junk that you smile and say thanks on the way to the trash can.
I remember a while back on E-hell 1.0 there was a discussion where a man was tired of receiving yard sale junk (I believe there was some old vomit on the baby clothes.) from his mother. Worse, this junk was considered the birthday and holiday gifts (I think, I don't clearly remember). Apparently the mother did not have an issue with funds (as in that was all she could afford). She just didn't give any thought about what she was buying her granddaughter. That, I'd speak up about. Otherwise ... smile and toss!
Hi y'all! First time poster, long time reader. I just had to say that, oh my good grief

, I thought my future MIL was the only one who did this.
I have a DD from a previous rel
ationship, and while my future MIL dotes on her to all her friends

, all she and I receive for presents at Christmas are garage sale items. My FMIL is a garage sale-a-holic, even though her and my FFIL have way more than enough money. We also receive the 5 year old magazines. I don't mind so much,Christmas is for the kids, but DD is 12 and has a hard time seeing all of her future step cousins open all these great gifts while she gets handed a bag of garage sale clothes.
It got so bad last year that my wonderful FSIL said that this year we weren't to buy her boys anything (even though I will) and that she would be sure to buy DD something special.
On Topic: In your situation, I would just say thanks and toss it when they go. If they ever ask about anything they gave you, just say that you thought it would look great at your friends house so you gave it to her.