Similar to the way there are libraries lending books and seeds (for exchange). Goodwill can create or partner w/ public places where items like raw textiles & actual garments can be still bought for $2 each, exchanged or lent for use & wear. Clothing from the second chance store I use to sell on platforms like eBay where I have successfully profited & sold every item for extra income. Goodwill can employ people to list and sell items on eBay. Even create niche stores within their own online platform creating jobs for web designers, etc (i.e. "GoodPants" "GoodShirts" "GoodDresses") Items need to be measured & sorted according to brand, size ranges, clothing material, etc.
These buy/exchange/lend spaces could also host art workshops where people can come to create pieces of art for home decoration using the textiles. Items that are unsellable (stained and not repairable w/ sewing) can be used to create custom costume pieces for Halloween, Christmas, or other themed party / SF festivals.