Before you give away your physical collection it is a good idea to create a digital backup. This will limit the time and money spent rejuvenating your collection via digital downloads. Put each CD in individually and rip the files to your computer drive or a cloud folder. If you're giving away or selling a collection, it's a good idea to peruse through what you have, setting aside the items that are worthy to keep. Although CDs don't yield a high value in the digital age, certain limited run items may be worth hundreds or even thousands of dollars.  This applies to DVDs as well, albeit to a lesser extent. Bootlegged items are seldom seen as valuable, unless the bootleg itself has acquired a certain level of notoriety of its own. Exceptions would include Mayhem's Dawn of the Black Hearts live bootleg. If you have blank or rewritable CDs, you can effectively reuse them by replacing the material that's on the discs. If there are albums you haven't heard much of before, having a physical copy at hand can make it easier to listen to them in certain cases. Burning CDs is also helpful if you want to show someone new music. Notice that copying material and giving or selling without permission from the creator is illegal. Whether via social media like Facebook or message board sites like Craigslist, it's a common thing for people to sell their collections to interested buyers. This way, you'll be able to get some money back from your original investment in the collection.  Sites like eBay are perfect for selling large collections. You can either sell items individually or the entire collection. Selling items individually will give more profit since there are more buyers and much more competition, but the process of organizing and selling the items is more complex.  Don't get your hopes up when it comes to making money off your collection. Because CDs aren't in such high demand anymore, you probably won't get more than a few dollars for each item, with exceptions made for rare discs. If you don't want to go through the trouble of handling money, you might transform your existing collection into an open gift for your circle of friends. Post up a list of what you have, and ask people what they might want from the pile. Set aside items that people are interested in and have already contacted you about them. Not only will this make sure that people are still getting enjoyment out of your old collection, it will boost your overall feeling of happiness and your reputation. Keep in mind that the less desirable items in your collection might not get someone interested, even for free. If this is the case, you can even have it recycled, or ask someone to take them off your hands in exchange for giving them the better discs. Even if it seems like a lot of people are trying to get rid of their collections, there's still a large market for the purchase of CDs and DVDs. Companies like 'Declutter' specialize in buying unwanted items and selling them at a markup cost. You can get rid of some or all of your collection this way. For most of these outlets, the money you make on each item will depend on their rarity and desirability. Because there are so many people looking to get rid of their collections, and because discs aren't biodegradable, there are lots of recycling centers that specialize in processing unwanted CDs and DVDs. If you don't want to sell or donate your CDs, check to see if a recycling center near you processes discs. If one does, you can take your collection over and have them take it off your hands.

Summary:
Digitize your library. Set aside rare collectible items. Burn material to your CDs. Sell off your collection. Gift your collection to friends. Get in touch with a media resale broker. Dispose of your CDs at a recycling center.